Solar energy is a very popular source of energy in the current era. The popularity of solar energy is leading to many innovations and price competition. Under the consequences of such a scenario, the prices of solar panels are decreased.
Solar panel price for a home:
The price of a solar system depends upon different factors. However, on average, the solar system costs between $3,500 to $35,000 for homes. Solar panel installation is also taken as a very useful and high-returning investment. Solar panels pay their cost and provide savings by lowering or even ending the usage of grid energy.
State-wise solar panel price
The following table shows the state-wise solar panel price. Hurry up to take a look at the price in your state. However, other factors mentioned in the article are also very important to assess the solar panel price for your home.
|STATE||AVERAGE COST FOR A 6-KW SYSTEM WITH 26% FEDERAL TAX CREDIT APPLIED||AVERAGE HOUSEHOLD KWH USE PER MONTH||DERIVED ESTIMATED YEARLY SAVINGS ASSUMING 100% SOLAR COVERAGE OF ELECTRICAL NEEDS|
|District of Columbia||$11,633||630.55||$1,042.68|
Cost Of Solar Panels by Type
There are different types of solar panels and differ in cost.
Monocrystalline solar panels:
Monocrystalline solar panels are the most energy-efficient solar panels. They are made from a single silicon crystal and have dark black color. Cost per watt ranges between $1 to $1.5 per watt. A solar system of 6 kW capacity costs $6,000 to $9,000. They cost the highest among all the solar panel types due to their higher efficiency. They are expensive due to high manufacturing costs but worthy of investing in.
Polycrystalline solar panels:
They are made up of many silicon crystals. The crystals are melted and molded into the shape of solar panels. They are less efficient as compared to monocrystalline solar panels. The cost of 6 kW polycrystalline solar panels is $5,400 to $6,000. Which means you will pay $0.9 to $1 per watt. It is an affordable cost for almost all citizens.
Thin-Film solar panels:
A 6kW solar panel system will cost between $6,000 and $9,000 to install since thin-film solar panels typically cost between $1 and $1.50 per watt. Thin-film solar panels are more affordable than their competitors but take up a lot of room; as a result, they are typically utilized in commercial settings.
Solar panel installation would cost between $15,000 and $25,000. This cost may vary depending on your location, the number of solar panels you’ll need, and whether you live closer to or farther from the equator, such as in Alaska.
Factors affecting the cost of solar panels:
The cost of solar panels is influenced by multiple factors. The following are the main factors affecting the cost of solar panels:
Size, Weight, and Number of Panels:
The number of solar panels you need to fulfill the needs of energy and the weight of solar panels are very important information to know while calculating the cost. You cannot calculate the cost of solar panels without knowing about them. The size of solar panels is also an important factor to consider. Hence, we can say that size, and weight number of solar panels are the key factors of solar panels.
Federal solar tax credit:
You can receive a federal solar tax credit for installing solar panels. As a result, your tax liability will be reduced by the credit you get for your income taxes. If your solar system is brand-new or is being utilized for the first time between January 1, 2006, and December 31, 2023, you may be eligible for the Investment Tax Credit (ITC). The ITC will expire in 2024 if Congress doesn’t extend it.
Types of solar panels:
For residential usage, there are three primary categories of solar panels. They are thin-film, polycrystalline, and monocrystalline. Monocrystalline solar panels cost between $1 – $1.50 per watt and are the greatest option for residential solar panels in terms of energy efficiency. Costing between $0.90 – $1 per watt, polycrystalline solar panels are less energy-efficient. The price per watt of thin-film solar panels ranges from $1 to $1.50.
Solar panel manufacturer:
The cost of solar panels can vary greatly depending on the manufacturer because they are made of different qualities. Although most manufacturers typically observe comparable cost ranges, the cost of solar panels increases with quality.
The quantity of sunlight that is reflected off the panels’ surface and converted into electrical or thermal energy is what determines how efficient the solar panels are. The most efficient solar panels are monocrystalline, however, due to their elegant pattern, they have a hefty price tag. Since they are easier to make, polycrystalline solar panels are less costly than monocrystalline ones. While producing thin-film PV cells is simpler and less costly, they are the least effective solar panel type.
As a result of regional pricing patterns and variations in system sizes, solar panel prices also varied by state. Prices vary from state to state because of differences in typical system sizes and incentives across states.
Roof design and pitch:
The price of solar panels will also depend on your roof’s attributes, such as the pitch of the roof. Usually, the complexity of the installation is included in the price of your solar company, so a complicated roof will increase the price of your system.
How I can pay for solar panels?
Homeowners might benefit from decreased utility expenses once solar panels are installed, despite the substantial investment. Solar panels may cost homeowners anywhere from $16,000 to $36,000 if purchased altogether. There are various options if you’re pondering how to pay for solar panels.
If you have additional money in the bank, think about paying for the installation of solar panels in full with cash. Owning your solar panels altogether will allow you to benefit from the significant refund and the tax subsidy straight away.
To reduce financial strain, solar loans let you finance the solar panels. Also, you can install the panels with little to no money down and use them to power your home right immediately. The payment schedule entails periodic payments over time with interest applied.
Solar Leases or Power Purchase Agreements (PPA):
In certain areas, homeowners can finance their solar panel purchases through power purchase agreements or lease them (PPAs). Under these leases or PPAs, a third company will install a solar panel system on your roof and own it while you continue to pay that party each month for your electricity. Some PPAs may bind you to a fixed rate, while others have a payment plan that increases annually. You can use this method however it can be costly.
Consider a cash-out refinance if you are refinancing your mortgage. This enables you to access the equity in your house, which homeowners frequently set aside for necessary home upgrades or to pay off other debt.
Home Equity Line of Credit (HELOC):
A home equity line of credit is yet another alternate form of financing (HELOC). This enables you to access the equity in your house and use it as a credit card with a cheaper interest rate so you may get money for home improvement projects.
This facility is only accessible through Tesla, and renting solar panels enables you to take advantage of alternative energy at a reasonable monthly cost. It’s crucial to keep in mind that because you do not own solar panels, you will not benefit from any tax benefits or refunds associated with them.
Solar energy is a renewable and clean source of energy that is very popular. The US government is well aware of this fact and provides all types of facilities for the residents to avail the benefits of solar energy. they are providing tax relief on solar system installation. They are also financing solar systems so that everyone can easily afford solar panels.