Solar electricity is a great way to power your home while still helping out the environment. Because the energy is made from sunlight (solar power) rather than fossil fuels, no greenhouse gas emissions—the primary contributing factor to the increase of global warming—are produced. By relying on the power produced by solar panels, you also save a lot of money on your energy bill in the long run.
For homeowners thinking of switching over to solar panels, we definitely recommend it. It’s safer, greener, and more cost-efficient. And you’ll soon find out why, in this article. We cover the average solar panel installation cost and the factors that determine it.
Factors to Consider
Several factors determine the price of a solar power system, including its configuration, component options, and size. You also need to take into account local permit costs, labor costs, tax credits, and available incentives.
The amount of power you’ll need also varies. Since the sun is only out during daylight hours, the amount of energy you’ll generate each day highly depends on the extent of cloud cover. You also need to remember that the length of each day differs according to the season.
To get the average number of sunlit hours each day, try researching the general weather forecast and weather conditions of your area. For example, states that experience all four seasons probably won’t get as much sun year-round compared to places that only have two and are hot 80% of the year.
Across the US, cities like Chicago and Seattle might average around three sunlit hours a day. Places like Arizona can get as much as 7 hours, depending on the season. California and Colorado are definitely states that get a lot of sun.
In fact, the Tri-Valley area in California—including Livermore, Pleasanton, Dublin, San Ramon, and surrounding areas—probably gets an average of 5 to 6 hours daily. This only means that the size of the panel required depends on your location.
Average Solar Panel Installation Cost
The cost of a solar panel system is measured in dollars per watt. On average, the cost of installing solar panels can be $7 to $9 per watt. This means a 5 kW system could get you back around $25,000 to $35,000.
Most utility companies offer homeowners incentives, with some even subsidizing as much as 50% of system costs. It’s worth noting that even if you purchase at half the cost, a system that generates an average of $75 electricity monthly could still take a long while to pay its original value.
For instance, a system worth $18,000 has approximately 20 years for its payback period. Since the cost of the solar panel today is roughly $3 per watt, the extra costs of solar panel installation could bring the amount up to $5 to $6 per watt.
Take note that installation costs for solar panels already include both the labor and electronics required to tie the unit into the existing electrical system in your home.
A residential solar power system doesn’t have to cost a lot. When you choose to get a solar lease, you can get your solar panel installation costs down to zero. All you pay for is the solar energy you use and save money on your monthly energy bill.
Would you like to experience the awesome benefits of a solar panel installation in your home? Call Power on Solar today to get a quote. Our team of highly-skilled professionals will guide you through the process of creating a solar-powered, energy-efficient home.