When it comes to harnessing solar energy, one of the most pressing questions on everyone's mind is: What is the cost of solar panels? In general, the average cost of a solar system with an average power of 7kW: around $19,390 USD or so. We've found that the price of solar panels is affected by a variety of factors, including your region, the size of your system, and the type of panels.
Solar Panel Prices
Here’s a quick breakdown of the costs for different types of solar panels, including monocrystalline, polycrystalline, and thin-film options. Based on data from authoritative sources like the Solar Energy Industries Association (SEIA) and EnergySage, here’s how the prices compare:
| Type of Solar Panel | Price per Watt (USD) |
|---|---|
| Monocrystalline | $0.70 - $1.00 |
| Polycrystalline | $0.60 - $0.90 |
| Thin-film | $0.40 - $0.70 |
Monocrystalline Panels
Monocrystalline panels are known for their efficiency and sleek appearance. They typically come at a higher price point, ranging from $0.70 to $1.00 per watt. Their efficiency makes them a great choice if space is limited, as they produce more power per square foot.
Polycrystalline Panels
Polycrystalline panels are generally more affordable, priced between $0.60 and $0.90 per watt. While they are slightly less efficient than their monocrystalline counterparts, they offer a good balance of cost and performance, making them a popular choice for many homeowners.
Thin-film Panels
Thin-film panels are the least expensive option, with prices ranging from $0.40 to $0.70 per watt. These panels are lightweight and flexible, but they tend to have lower efficiency. This means you’ll need more space to produce the same amount of energy as the other two types. They’re often used in larger installations or unique applications.
Solar System Prices
The capacity of a solar system is measured in kilowatts (kW), and this directly affects how much electricity it can produce annually. Here’s a table outlining the estimated costs and annual energy production for systems sized at 4, 6, 8, 9, 10, and 11 kW, based on data from reputable sources like EnergySage and the National Renewable Energy Laboratory (NREL):
| System Size (kW) | Estimated Annual Energy Production (kWh) | Average Price (USD) |
|---|---|---|
| 4 kW | 4,800 | $8,000 |
| 6 kW | 7,200 | $12,000 |
| 8 kW | 9,600 | $16,000 |
| 9 kW | 10,800 | $18,000 |
| 10 kW | 12,000 | $20,000 |
| 11 kW | 13,200 | $22,000 |
Solar System Prices by State
To give you a clearer picture, here’s a table showing the prices of a 7 kW system in various states, including costs before and after tax credits, average cost per watt, average residential electricity rates, and estimated annual savings from using solar energy.
| State | Price Before Tax Credit (USD) | Price After Tax Credit (USD) | Cost per Watt (USD) | Average Electricity Rate (USD/kWh) | Estimated Annual Savings (USD) |
|---|---|---|---|---|---|
| California | $21,000 | $17,850 | $3.00 | $0.25 | $1,600 |
| Texas | $19,600 | $16,060 | $2.80 | $0.12 | $1,200 |
| Florida | $20,400 | $17,340 | $2.91 | $0.13 | $1,300 |
| New York | $24,500 | $20,825 | $3.50 | $0.18 | $1,500 |
| Illinois | $22,000 | $18,700 | $3.14 | $0.14 | $1,200 |
| Arizona | $18,500 | $15,725 | $2.64 | $0.13 | $1,250 |
| Nevada | $19,200 | $16,320 | $2.74 | $0.12 | $1,150 |
Understanding the Table
-
Price Before and After Tax Credit: The prices listed show the total cost of a 7 kW solar system before and after applying the federal solar tax credit, which currently allows homeowners to deduct 30% of the installation costs from their federal taxes.
-
Cost per Watt: This figure helps to compare the price of solar systems across different states, allowing you to assess which regions provide better value for your investment.
-
Average Electricity Rate: This rate indicates how much residents pay per kilowatt-hour (kWh) of electricity. Higher electricity rates can make solar more attractive, as the potential savings increase.
-
Estimated Annual Savings: This is the amount homeowners can expect to save on their electricity bills after installing a solar system. It varies based on local electricity rates and the size of the system.
Factors Influencing Solar Panel Costs
1. Type of Solar Panel
The type of solar panel you choose greatly affects the price. Monocrystalline panels, while more efficient, are generally more expensive than polycrystalline and thin-film options.
2. System Size
The size of your solar system directly impacts the overall cost. Larger systems typically have a higher upfront cost, but they also produce more energy, potentially leading to greater savings over time.
3. Installation Costs
Installation expenses can vary widely depending on your location and the complexity of the installation. Professional installation is recommended, as it ensures safety and compliance with local regulations, but it can add to the overall cost.
4. Local Incentives and Tax Credits
Federal and state incentives, such as the solar tax credit, can significantly reduce the cost of installation. Researching available incentives in your area can lead to substantial savings.
5. Location and Sunlight Exposure
Your geographical location affects solar panel efficiency and production. Areas with more sunlight can yield better energy output, impacting the cost-effectiveness of your investment.
6. Quality of Equipment
Investing in higher-quality panels and inverters may have a higher initial cost, but they often come with better warranties and longer lifespans, offering better value over time.
Is Installing Solar Panels Worth It?
Absolutely! Installing solar panels is a worthwhile investment for many homeowners.
1. Significant Savings on Electricity Bills
One of the primary benefits of solar panels is the reduction in your monthly electricity bills. On average, homeowners can save anywhere from $1,000 to $2,000 per year, depending on their location, energy consumption, and the size of the solar system installed. These savings can quickly add up, making solar energy an economically attractive option.
2. Quick Payback Period
The payback period for solar panel installations typically ranges from 5 to 7 years. This means that, after this time, the energy produced by your solar system essentially pays for the initial investment. Given the lifespan of solar panels can exceed 25 years, you’ll enjoy many years of free energy after the payback period.
3. Increase in Property Value
Studies have shown that homes with solar panel systems tend to sell for more than comparable homes without them. This means your investment in solar not only pays off in energy savings but can also increase your home’s resale value. (For installation, you can check out our article: How to install solar panels)
4. Incentives and Tax Benefits
As mentioned earlier, federal and state incentives can significantly reduce the upfront costs of installing solar panels, making it more affordable than ever.
Recommendation: SEL’s 10 kW Solar System
If you’re considering making the switch, we recommend our 10 kW solar system at SEL. This system is designed to meet the energy needs of medium to large households and can generate approximately 12,000 kWh annually. With an average cost that includes competitive pricing and top-quality equipment, our system offers a solid return on investment.
