The answer to the above question is that it depends on a number of factors. Before we dive into what these are and look at the average cost, let’s start with some good news.
In the past decade, the cost of solar panel installation has fallen by more than 60%. The availability of the federal solar tax credit and various state and local incentives is also playing a role in making solar panels an affordable option for homeowners. Tens of thousands of homeowners in the United States are making the switch to solar energy every month.
What Are the Factors That Determine Solar Panel Cost?
The first consideration here is the size of the solar panel system that you choose to install on your property. Your decision here will be determined by the size of your property, the number of occupants, and current energy usage.
Local is another factor. Properties in areas with less sunlight will likely require more solar panels to meet their energy needs. This will increase the upfront cost of solar panel installation.
The specific type of solar panel system that is installed will also determine the cost. We always recommend that you opt for a Tier 1 system. While it is more expensive than Tier 2 or Tier 3 systems, it has a lower degradation rate and is the best long-term option.
How Much Do Solar Panels Cost?
Let’s look at a specific example and take Hamilton County, Ohio as an example. For a homeowner with an average monthly utility bill of $181, the recommended system size would be 5.5 kW. The upfront cost of installation would be between $10,700 and $13,100 after applying the 26% federal solar tax credit.
This would result in a payback period of between 5.8 and 7 years. The net profit (the savings over 25 years minus the solar system cost) would be between $45,000 and $56,000. Clearly, the potential savings with solar panels outweigh the upfront cost of installation.
It should be noted that solar panels offer grid independence and protect homeowners from rises in the price of grid electricity. If you own an electric vehicle or are considering purchasing one, it will pair excellently with a residential solar panel system. Charging your electric vehicle using solar energy is considerably cheaper than using grid electricity or public charging stations.
Click here to learn more about solar install cost in Cincinnati, Ohio.
The Cost to Install Solar Panels
The above information highlights the different factors that determine the upfront cost of solar panels. It also shows the long-term cost benefits of making the switch to solar energy. We recommend that you speak to experienced solar panel installers to learn more about the cost of installing solar panels in your area.
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