Solar Panel Cost: A Price Breakdown

If you’re an American adult supporting renewable energy, you might consider installing a solar power system in your home. However, it’s an extensive undertaking, meaning its upfront costs could be staggering.

It may discourage you, but knowing the numbers could alleviate your worries. How much do solar panels cost? Read on as we discuss the average solar panel cost and its various factors.

Average Solar Panel Cost

On average, a solar panel installation cost ranges between $15,000 and $25,000. Location is one of the primary factors affecting the price. After all, it determines your electricity rates.

Before deciding to dive into solar energy, check your electric bill. After that, determine your location and other incentives. It determines whether solar panels are worth your time.

Solar Panels for Home Cost Breakdown

The following are the factors driving the price of your solar panel system. Use these to find the best one for your home. Also, learn about home solar benefits by clicking on the linked guide.

Panel Brand and Quality

The solar panel costs depend on the brand. The price paid for a specific solar panel brand reflects its quality. For example, some high-end solar panels cost around $34,300, but they have high efficiency and impeccable quality.

However, only a few outliers exist when it comes to brand pricing. As a result, most manufacturers will offer similar price ranges.

Labor

Labor fees are another component affecting the average cost of solar panels. Solar installers charge various amounts for installing your solar power system. However, it depends on specific factors, such as:

• Installer’s track record
• Internal operations
• Warranty offerings

A reputable solar installation company will offer premium prices for warranties. They will likely charge more for installation, but it’s worth your money.

Permits and Interconnection

The cost of solar permits and interconnection fees will also drive the price of your solar panels. In most cases, you have to get solar permit documents and pay fees to connect your solar power system to the grid.

Rebates and Incentives

This price component is guaranteed to decrease your solar panel costs. Look for solar rebates and incentives in your states. Some of these are:

• Tax credits
• Cash rebates
• Performance-based Incentives
• Energy credits

The best incentive to go solar in the United States is the Federal Solar Tax Credit. It enables you to deduct 26% of your solar panel costs from your federal taxes. The best part is the lack of maximum values.

For example, if you’re buying a $27,600 solar panel system, the 26% deduction means saving $7,176 on taxes. 

Learn How Much Solar Panels Cost Now

These are some solar panel cost considerations. Before buying your solar power system, use this breakdown to determine whether your investment is worth your time.

However, finding a reputable solar company makes a huge difference. Look for good contractors through the Better Business Bureau and other online review sites.

Did you find this guide helpful? If you want to learn more tips and tricks, consider exploring our other articles today.