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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We''ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
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The average solar panel cost in the U.S. ranges between $17,350 and $38,000, depending on where you live and before applying incentives. While the cost of solar panels has dropped by more than 40 percent in the past decade, investing in solar is still a hefty purchase. The total price will depend on the size of your system, solar components, installation costs and other factors. You can lower the cost through solar incentives and tax credits at the federal, state and local levels.
Solar panels can be a great solution to rising energy bills or frustration over power outages in your area. An installed solar panel system generates electricity to power your home, meaning you wouldn''t need to pay as much for traditional electricity from the grid, ultimately lowering your energy bills.
Interested in understanding the impact solar can have on your home? Enter some basic information below, and we''ll instantly provide a free estimate of your energy savings.
The average cost of solar in the U.S. is $31,558, based on the latest cumulative data from the Lawrence Berkeley National Laboratory, a Department of Energy Office of Science laboratory. Solar panel costs are calculated by the price per watt. The average price per watt in the U.S. is $3.67 for an 8.6 kW system (rounded up). Compare the average cost of solar in the U.S. based on system size before applying incentives.
To estimate how much a system will cost, multiply the price per watt by the system size. The system size you''ll need depends on your energy consumption, typically over a 12-month period. You can check past electricity bills for a monthly estimate of your energy usage and use that amount to find your 12-month usage.
The average cost of solar panels varies by state due to several factors. The total cost will depend on the individual system, but local factors impact it as well. For example, average energy usage varies by state, which affects the typical solar system size that a household needs to completely cover how much energy they consume.
The following table shows the average cost of solar panels in each state, as well as the average monthly solar loan. The loan amount is based on the cost of a solar system before factoring in tax credits. Because you''ll apply for the federal tax credit after purchasing solar panels, you can apply the tax credit savings to your solar loan to decrease your monthly payment.
*Data sourced from Find Energyand Bankrate''s Loan Calculator
**Monthly loans based on 20 year loan terms and 6 percent interest rate
The price of the individual system components (like panel modules, inverters or optional solar batteries) isn''t the only factor impacting the total cost of a solar panel system. You should also consider soft costs, including installation, taxes, inspection fees and more, all of which contribute to the total price.
Data from the National Renewable Energy Laboratory (NREL) breaks down typical costs associated with solar panel installation:
According to the latest data from SaveOnEnergy, the average monthly electricity bill in the U.S. in October 2023 was $145.73, or about $1,750 annually. (SaveOnEnergy is also owned by Bankrate''s parent company, Red Ventures.) Depending on how you pay for your solar system, you may experience immediate savings. If you finance your solar panel system, you may not experience savings right away, but likely will in the coming years as you gain a return on your investment.
Financing your system through a solar loan may not provide instant savings because you''ll need to account for a monthly loan payment. Your loan payment is affected by your system size and annual energy consumption. As an example, the average system costs $22,091 after tax credits. If we assume a 6 percent interest rate over 20 years, your monthly loan payment will be around $158 per month.
You can use your energy bill to estimate how long it will take to experience a return on your solar investment. As an example, we''ll use U.S. averages:
Solar panel manufacturers normally provide a 25- to 30-year warranty on the solar products. Given the average payback period is under 13 years, solar panels could help you save money on energy costs for well over a decade after you''ve paid them off. However, your energy usage is ultimately what determines how much you''ll pay on energy bills. As energy rates fluctuate, the potential savings with solar may change as well, impacting the payback period.
It''s clear that solar panels aren''t cheap, but you can offset a portion of the installed cost through incentives like rebates and tax credits. The most important solar incentive to know about is the federal Residential Clean Energy Credit, which is part of the Inflation Reduction Act. If you own a solar system, you can claim 30 percent of the total cost of your system as a credit when you file your federal tax return.
Because the Residential Clean Energy Credit is a federal incentive, you can apply no matter where you live or what tax bracket you''re in. To qualify for this Inflation Reduction Act incentive, you must meet the following criteria:
The Residential Clean Energy Credit offsets the installed cost of a solar array by 30 percent. Here''s how the math works out for the average solar system:
Many states and local governments offer solar incentives, too. You can combine state solar incentives with the Inflation Reduction Act tax credit to further lower the price of solar panels.
Before signing a contract with a solar installation company, it''s important to know whether solar panels will work well for your home and budget. A few things to consider include your current energy costs, incentives in your area that impact the price and how much sunlight your roof receives.
The amount you pay in electric bills each month depends on electricity rates in your area and how much energy you use. The more energy you consume, the higher your bill will be. The same can also be said for electricity rates — higher rates will often equal a higher bill. There are some exceptions to this rule. Check your utility bills for an estimate of how much you''re currently paying and how much energy you normally use each month.
About Cost of solar panels per kw
As the photovoltaic (PV) industry continues to evolve, advancements in Cost of solar panels per kw have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
When you're looking for the latest and most efficient Cost of solar panels per kw for your PV project, our website offers a comprehensive selection of cutting-edge products designed to meet your specific requirements. Whether you're a renewable energy developer, utility company, or commercial enterprise looking to reduce your carbon footprint, we have the solutions to help you harness the full potential of solar energy.
By interacting with our online customer service, you'll gain a deep understanding of the various Cost of solar panels per kw featured in our extensive catalog, such as high-efficiency storage batteries and intelligent energy management systems, and how they work together to provide a stable and reliable power supply for your PV projects.
