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Based on our survey of 2,000 homeowners with solar systems installed, solar panels cost between $7,500 and $11,000 before incentives for an average 1,000-square-foot home(About 100 square meters). The actual price you pay will depend on a number of factors including the size of system you need, the installation company and equipment you choose, and the financing option you choose.

Average Cost of a Solar System

For the average home with a 6- to 8-kilowatt system, solar panels will cost between $15,000 and $22,500 before incentives are applied.

In the last five years, solar panels have become more affordable due to the lower cost of home installation equipment, including solar panels and inverters, and the development of many options for installing panels on homes regardless of the roof and orientation. Also, by using the 30% federal solar tax credit, you can expect to pay between $10,500 and $15,750. Most homeowners will recoup the cost of their solar panels through savings on their electricity bills within 8.5 years, resulting in savings of $25,260 over the life of the system. This is a period of time for normal home use, but it decreases as people tend to do household chores that consume energy during peak production times, as well as those who have activities that use electricity during the day.
Solar panels are most expensive in Massachusetts, where they cost about $18,900 after the tax credit.

New Mexico is cheaper, with an average price of $9,996 after using the federal solar tax credit.

This difference is due to sun hours as a major factor because the fewer sun hours, the more solar panels, quite simply.

What Factors Affect the Cost of Solar Panels?

There are many factors that affect the total cost of your solar energy system. Learn which factors you can control to help lower the cost of your system and maximize your lifetime savings.

1-Your Location

2-Home Energy Needs

The typical American home uses 10,632 kilowatt-hours of electricity per year, or about 886 kilowatt-hours per month. However, several factors can affect your energy needs, including the size of your home, the number of people in your household, and whether you have an electric vehicle.

The more energy your home consumes, the larger the solar panel system will need to be to offset your consumption. For example, based on the average cost of solar panels at $3 per watt with installation, a 6-kilowatt system will cost you about $18,000, while a 12-kilowatt system will double the cost.

Solar System Size
The cost of your solar system is directly proportional to its size. The more solar panels you install, the more expensive your system will be.

The ideal system size for your home depends on personal factors such as the size and angle of your roof, energy usage, and location. Ultimately, the size of your solar system depends on your home’s energy consumption and how much energy you want to generate with your solar panels.
In addition to the type of electrical appliances used in the home and their energy consumption efficiency, before considering installing a solar system for the home, you should think about economical electrical appliances, class A, A+, and preferably A++. This makes the number of panels used less by half sometimes, meaning half the bill and less space for installation. In addition to the fact that this equipment is of high quality and will last with you for a long time without problems of repair or replacement.

3-Solar Panel Type

The cost of NPN is the largest cost you will pay during an NBC Solar installation. There are many options available from the solar financing organization, and the manufacturer, installer, and type you choose will be based on your final cost. There are three types of NNC solar: polycrystalline,  thin-film, and monocrystalline.

That is why the all-crystalline package is installed due to its durability and efficiency. The cost ends up being quite successful to be comparable with other types of financing available, and you will need fewer mono generation installations to produce the same energy.

4-Solar Installation Company

Another factor that can greatly affect the final cost of your solar system is the installation company you choose. Use the chart below to help you find a provider with an installation cost within your budget and request a free quote.

4-The percentage of each component in the price of a solar system.

5-Solar Panel Installation Cost Breakdown

A Look at State Solar Incentives

In addition to federal incentives, many states offer other incentives to go solar, including tax credits, credits, and rebates. If you’re interested in solar incentives available in your state, you can browse the Database of State Incentives for Renewable Energy and Efficiency (DSIRE) or visit your local government website to learn more.

In addition, net metering is a program that allows you to sell excess electricity generated by your solar panels to your utility company for bill credits. Forty-one states and Washington, D.C., have a mandatory net metering policy, though some policies are better than others. States that don’t have a mandatory net metering policy, such as Texas and Idaho, may have utility companies that offer the program.

Many states also offer solar rebate programs for low- and moderate-income households or community solar programs that aim to make clean energy more accessible.

Finally, the topic can be summed up in one sentence: It is better to light a candle than to curse the darkness.