Frequently Asked Questions

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The average cost to install solar panels in the United States is about $12,000 after federal tax incentives. On the low end, you can install a smaller system for around $5,000, while a high-priced Tier 1 solar panel system can cost $40,000 or more.  There are additional costs that go into an installation project beyond the price of panels. In fact, only about a quarter of the installation costs are actually for the panels. Labor costs, operational costs and additional equipment, such as inverters, make up the rest of the price.  Solar energy companies install the solar panels, provide maintenance and offer warranties on both the panels and the work. These additional services aren’t free, but they are often worth it. A few additional factors affect the price of solar panel installation.

In 2020, the solar tax credit was good for 26% of the system costs. This year, the credit goes down to 22%, and homeowners might not be able to claim the solar tax credit at all in 2022. However, commercial solar panel tax credits are supposed to stay at 10%. In addition to federal solar tax credits, many state incentives also reduce the financial burden for homeowners who want to go solar. Low-income homeowners could be eligible for municipal programs and rebates that lower the cost.

The average cost of a Solar Panel ranges between $2.50 and $4.00 per watt. According to Solar Action Alliance, installers who buy in bulk, getting a wholesale price like  Kyreaux Solar does, pay less than the retail price, passing on the price cut to you.   After the current incentives, the current systems on average costs a little over $10,000 for a 5-kw system.

Not all solar panels are created equal. Of the three types of solar panels available, monocrystalline and polycrystalline are most commonly used to power homes. Panels made with monocrystalline are usually more efficient, but they’re also more expensive than polycrystalline panels. If you have limited roof space, you might need to get more efficient (and more expensive) panels.

Your location also affects the cost of going solar. To figure out how many photovoltaic (PV) panels your system needs, multiply your average hourly energy requirement by peak sunlight hours in your area, then divide by a panel’s wattage. We suggest establishing a range with high-wattage and low-wattage examples.   Most American homes end up needing around 30 panels to supply 100% of their energy needs. The average cost of solar panels also depends on the size of your system. Most roof solar panels are about 5½ feet tall by 3 feet wide, so consider the size of your roof.

Like buying a new car, you can pay for solar panels outright, but most people don’t. Solar panels have a high upfront cost, but homeowners and business owners can use loans, solar leases or power purchase agreements (PPA).