How much do solar panels cost?
The average cost of solar panels in 2021 after tax credits is between $11,700 – 19,500. Thankfully, the cost of solar panels in 2021 has decreased, making it a better option for energy consumers.
In the last decade, solar panel prices have dropped by more than 70 percent. With solar costs at an all-time low, many residential energy consumers have made the switch to power their homes with clean solar energy.
As solar panel costs have gone down, residential solar energy has grown in popularity across the country. According to the EIA, in the last decade, solar has seen an annual growth rate of about 32 percent.
So, how much do solar panels cost in 2021? And what’s the best way to pay for home solar panels? If you live in Tampa, Expert Solar is here to help you answer these questions and more.
Average price of home solar panels
The cost of solar panels can change depending on the size of the system, installation costs, incentives, and more. The average residential solar system size is 5-kilowatts (kW). Based on the average price per watt ranging from $3 – $5, a 5-kW residential system costs between $15,000 – $25,000. But keep in mind this is before adding in tax credits or incentives.
The federal investment tax credit can help reduce the costs of solar panels for your home. The tax credit is based on the solar system’s total cost and is currently set at 22 percent.
Here’s how the federal tax credit can impact your total cost of solar panels:
Click here to see solar incentives available in Florida.
How much is a home solar panel system?
There are several factors that impact the cost of solar panels for homes. The main influencer is the size of your solar system. The larger the system, the higher the price. Following are a few other contributors to solar cost:
- Installation cost. The rate your solar installer charges to set up your solar system can vary. Be sure to research different solar installation companies in your area to find the right fit for you.
- Roof age and condition. The age and condition of your roof can greatly affect how much electricity your solar panels generate. If your roof is older or in poor condition, you may need to factor in the cost to repair or replace it.
- Manufacturer brand. There are many different brands of solar panels. The cost of solar panels by the brand can impact your bottom line. Like solar installers, be sure to research different solar panel brands to find the right price before committing to one.
Price of solar panels per square foot
The average solar panel costs about 15 watts per square foot. Most solar panel installers measure the cost by watt instead of square foot. This means that the amount of electricity a solar system generates is what determines how much it will cost. The average home solar system is 5-kW, which equals 5,000 watts. Most solar systems end up costing between $3 – $5 per watt.
Are solar panels worth the investment?
This all comes down to one question – Are solar panels worth it? The answer is a resounding yes as long as they will work well for your home and energy needs.
While the upfront cost of solar panels is high, the average payback period is between 6 – 9 years depending on the system size and electric bills. What’s more, the cost of solar panels is offset at least partially because they will increase your home’s property value by about $15,000.
You might also be wondering how much you can save on your energy bills by investing in solar. Your electric bill savings will depend on the size of your solar system and how much energy it generates. A recent study from NC State University showed homeowners who purchased solar panels saved an average of $44 – $187 each month on utility bills.
Think solar panels might be right for you? Expert Solar is here with resources and guides to help you navigate the solar energy industry.