Solar panel technology has come a long way in recent years, making harnessing the sun’s power more affordable than ever. Not only does solar energy help reduce your carbon footprint, but it can also save you money on your monthly energy bills. In this article, we’ll explore the true cost of solar panel installation, including factors like equipment costs, installation fees, and potential tax incentives.
1: Understanding the Costs of Solar Panel Installation Before you start shopping around for solar panel quotes, it’s important to understand the various factors that can impact the overall cost of installation. These factors include:
- Equipment costs: The cost of solar panels and related equipment, such as inverters and batteries.
- Installation fees: The labor and materials required to install your solar panels.
- Financing options: Some solar panel companies offer financing options, which can help you spread out the cost of installation over time.
- Tax incentives: Depending on where you live, you may be eligible for tax incentives that can significantly reduce the overall cost of solar panel installation.
2: Average Solar Panel Costs by State The cost of solar panel installation can vary widely from state to state. In this section, we’ll take a closer look at the average cost of solar panel installation in each state. This information can help you better understand what to expect when it comes to pricing in your area.
| STATE | AVERAGE COST FOR 6-KW SYSTEM WITH 26% FEDERAL TAX CREDIT APPLIED | AVERAGE COST FOR GRID POWER (JULY 2022) | AVERAGE HOUSEHOLD KWH USE PER MONTH | DERIVED ESTIMATED YEARLY SAVINGS ASSUMING 100% SOLAR COVERAGE OF ELECTRICAL NEEDS | DERIVED ESTIMATED NUMBER OF YEAR TO “BREAK EVEN” ON INVESTMENT |
| Pennsylvania | $11,411 | 16.63 ¢/kWh | 821.88 | $1,640.14 | 6.96 |
| Montana | $12,254 | 11.71 ¢/kWh | 858.24 | $1,206.00 | 10.16 |
| Nebraska | $11,707 | 12.03 ¢/kWh | 1,013.19 | $1,462.64 | 8 |
| Nevada | $10,922 | 13.50 ¢/kWh | 970.67 | $1,572.49 | 6.95 |
| New Hampshire | $12,920 | 21.82 ¢/kWh | 622.41 | $1,629.72 | 7.93 |
| New Jersey | $10,745 | 17.21 ¢/kWh | 673.24 | $1,390.38 | 7.73 |
| New Mexico | $12,343 | 15.09 ¢/kWh | 669.89 | $1,213.04 | 10.18 |
| New York | $11,766 | 21.88 ¢/kWh | 599.78 | $1,574.78 | 7.47 |
| North Carolina | $10,390 | 12.03 ¢/kWh | 1,040.83 | $1,502.54 | 6.91 |
| North Dakota | $10,031 | 12.54 ¢/kWh | 1,085.26 | $1,633.10 | 6.14 |
| Ohio | $10,656 | 14.86 ¢/kWh | 888.02 | $1,583.52 | 6.73 |
| Oklahoma | $10,854 | 13.35 ¢/kWh | 1,078.20 | $1,727.28 | 6.28 |
| Oregon | $11,144 | 11.74 ¢/kWh | 916.27 | $1,290.84 | 8.63 |
| Missouri | $10,701 | 14.24 ¢/kWh | 1,027.74 | $1,756.20 | 06.09 |
| Rhode Island | $11,988 | 19.44 ¢/kWh | 598.93 | $1,397.18 | 8.58 |
| South Carolina | $12,210 | 14.26 ¢/kWh | 1,080.70 | $1,849.29 | 6.6 |
| South Dakota | $10,016 | 13.05 ¢/kWh | 1,036.73 | $1,623.52 | 6.17 |
| Tennessee | $10,293 | 13.09 ¢/kWh | 1,168.32 | $1,835.20 | 5.61 |
| Texas | $10,967 | 13.53 ¢/kWh | 1,131.93 | $1,837.80 | 5.97 |
| Utah | $11,411 | 11.49 ¢/kWh | 768.85 | $1,060.09 | 10.76 |
| Vermont | $12,299 | 20.24 ¢/kWh | 567.13 | $1,377.45 | 8.93 |
| Virginia | $11,650 | 14.42 ¢/kWh | 1,095.21 | $1,895.15 | 6.15 |
| Washington | $10,390 | 10.42 ¢/kWh | 969.49 | $1,212.25 | 8.57 |
| West Virginia | $10,925 | 13.76 ¢/kWh | 1,051.24 | $1,735.81 | 6.29 |
| Wisconsin | $13,009 | 15.59 ¢/kWh | 694.24 | $1,298.78 | 10.02 |
| Wyoming | $10,626 | 11.81 ¢/kWh | 869.33 | $1,232.01 | 8.62 |
| Illinois | $12,388 | 16.61 ¢/kWh | 697.97 | $1,391.19 | 8.9 |
| Alaska | $9,956 | 24.25 ¢/kWh | 552.29 | $1,607.16 | 6.19 |
| Arizona | $10,123 | 13.08 ¢/kWh | 1,113.69 | $1,748.05 | 5.79 |
| Arkansas | $10,888 | 12.74 ¢/kWh | 1,060.04 | $1,620.59 | 6.72 |
| California | $11,278 | 26.77 ¢/kWh | 604.91 | $1,943.21 | 5.8 |
| Colorado | $12,654 | 14.52 ¢/kWh | 711.1 | $1,239.02 | 10.21 |
| Connecticut | $11,500 | 23.37 ¢/kWh | 702.76 | $1,970.82 | 5.84 |
| Delaware | $11,322 | 13.42 ¢/kWh | 934.53 | $1,504.97 | 7.52 |
| District of Columbia | $11,633 | 13.78 ¢/kWh**** | 630.55 | $1,042.68 | 11.16 |
| Florida | $10,301 | 13.95 ¢/kWh | 1,141.50 | $1,910.87 | 5.39 |
| Georgia | $11,722 | 16.02 ¢/kWh | 1,081.17 | $2,078.44 | 5.64 |
| Hawaii | $14,474 | 44.81 ¢/kWh | 537.15 | $2,888.36 | 05.01 |
| Idaho | $12,654 | 11.22 ¢/kWh | 955.28 | $1,286.19 | 9.84 |
| Alabama | $10,142 | 14.99 ¢/kWh | 1,144.77 | $2,059.21 | 4.93 |
| Indiana | $11,322 | 15.03 ¢/kWh | 938.22 | $1,692.17 | 6.69 |
| Iowa | $10,478 | 15.61 ¢/kWh | 865.03 | $1,620.37 | 6.47 |
| Kansas | $9,881 | 14.91 ¢/kWh | 883.18 | $1,580.19 | 6.25 |
| Kentucky | $9,641 | 13.24 ¢/kWh | 1,073.17 | $1,705.05 | 5.65 |
| Louisiana | $11,588 | 13.81 ¢/kWh | 1,200.58 | $1,989.60 | 5.82 |
| Maine | $11,894 | 23.11 ¢/kWh | 566.83 | $1,571.93 | 7.57 |
| Maryland | $11,500 | 14.28 ¢/kWh | 964.17 | $1,652.20 | 6.96 |
| Massachusetts | $12,166 | 23.93 ¢/kWh | 610.26 | $1,752.42 | 6.94 |
| Michigan | $11,855 | 18.03 ¢/kWh | 675.6 | $1,461.73 | 8.11 |
| Minnesota | $12,787 | 15.15 ¢/kWh | 774.81 | $1,408.60 | 09.08 |
| Mississippi | $13,442 | 12.35 ¢/kWh | 1,146.33 | $1,698.86 | 7.91 |
3: Tips for Saving Money on Solar Panel Installation While the cost of solar panel installation can seem daunting, there are several ways to reduce your overall costs. Some tips include:
- Shopping around for multiple quotes: Get quotes from several solar panel companies for the best price.
- Investing in high-quality equipment: While going with the cheapest option may be tempting, it can save you money in the long run.
- Taking advantage of tax incentives: Research potential tax incentives in your area and take advantage of any that apply to you.
- Considering financing options: If you can’t afford to pay for solar panel installation upfront, consider financing options to help spread the cost over time.
Conclusion Solar panel installation can be a smart investment that saves you money on your energy bills and helps reduce your carbon footprint. By understanding the various factors that impact the installation cost and taking advantage of cost-saving tips, you can make solar panel installation more affordable than ever.