Solar panels are a great way to save money on energy costs and reduce our reliance on fossil fuels, the biggest source of greenhouse gases. They sound like a win-win situation, but unfortunately, for many, the cost of installing them can be restrictive.
Are you considering converting to solar power? Make sure you budget appropriately by considering the costs associated with installing solar panels on your roof.
Breaking Down the Costs
The average cost of installing solar panels in the U.S. is between $15,000 to $25,000, but it can be as low as $9,000 and as high as $40,000. The cost of solar panels fluctuate significantly because several factors come into play when installing them. Here are the things you should expect to pay for when you’re shopping for a solar power system.
Hardware
Hardware includes the solar panels themselves, the mounts that the panels are fixed to, and the solar inverter that converts the direct current (DC) solar power to the standard alternating current (AC) power that comes out of your outlets.
There are currently three types of solar panels that you can choose from: monocrystalline, polycrystalline, and thin-film. Depending on which type of panel you choose, the cost and efficiency will vary. Monocrystalline panels are cut from a single silicon crystal. They are the most efficient and have the longest lifespan, but they’re also the most expensive. Polycrystalline panels are made from multiple pieces of silicon that are melted together and cut into uniform pieces. Their efficiency and lifespan are lower than monocrystalline panels, but they’re more affordable. Thin-film panels are made from different types of photovoltaic materials that are applied to a transparent sheet like glass. They’re the most affordable, but also the least efficient and have the shortest lifespan.
Size
A few factors come into play when choosing the size of your solar power system (measured in kilowatts). How much power you consume, the amount of sun you get, the size of your roof, and your budget will all determine whether you should get a larger or smaller solar power system. However, most experts recommend getting a system no smaller than 5 kW with most average homes having a system between 6 kW and 8 kW.
Labor
Solar panel installation is not a DIY project—you have to leave it up to the pros. Depending on your location and the number of solar companies available, the cost of labor will vary. Be sure to shop around and receive several quotes from vendors before you choose one.
City and County Fees
Different states, cities, and counties have different solar permitting, inspection, and tax requirements that could drive up the cost of your installation. Visit your city or county website to find out what licenses and requirements they have for solar.
Location Matters
Your location is the biggest variable in determining your average cost for installing solar panels. Depending on where you live, the cost of materials, labor, and permits vary. Your state may also offer more tax breaks and incentives that lower the cost for you.
According to ConsumerAffairs, in 2021 the most expensive state to install solar panels before incentives is Hawaii with an average cost of $19,560. The least expensive state is Kentucky with an average cost of $13,101.
Armed with this basic information and the multitude of online research tools that help you calculate how much sun you get and what size system you need, it should be easy to determine how much you need to spend on your solar power system. If you live in a sunny state and consume a lot of power, making the switch to renewable solar energy is a no brainer.
Learn more about whether solar power is worth it for you.
