How much do solar panels cost in 2023?

Average solar panel cost by state

The average price for a 6-kilowatt (kW) system (after federal tax credits) is $11,810, but costs vary by state based on labor rates, local incentives, solar equipment quality and other factors. Depending on the size of your roof and your energy needs, you could pay anywhere from $10,000 to $30,000 or more.

The national average cost to install solar panels is $23,879 before the 30% federal solar investment tax credit (ITC), according to data from EcoWatch. After applying the credit, the price drops to $16,715.

» COMPARE: Best solar energy companies of 2023

Average cost per watt

Typical system size

Average cost after ITC

Payback period*

Estimated net savings

Alabama $2.45 11.5 kW $19,723 11 years $28,590 Alaska $2.41 6 kW $10,122 7 years $34,500 Arizona $2.61 11.5 kW $21,011 12 years $23,891 Arkansas $2.54 11 kW $19,558 13 years $15,567 California $2.73 4.5 kW $11,466 8 years $30,000 Colorado $2.69 7.5 kW $14,123 12 years $14,479 Connecticut $2.80 7.5 kW $14,700 8 years $42,705 Delaware $2.58 9.5 kW $17,157 12 years $29,016 Florida $2.53 11.5 kW $20,367 12 years $21,500 Georgia $2.55 11 kW $19,635 12 years $23,182 Hawaii $2.67 5.5 kW $10,280 6 years $49,459 Idaho $2.60 10 kW $18,200 14 years $11,478 Illinois $2.73 7.5 kW $14,333 12 years $16,585 Indiana $2.68 9.5 kW $17,822 12 years $21,994 Iowa $2.77 9 kW $17,451 12 years $17,572 Kansas $2.59 9 kW $16,317 11 years $21,455 Kentucky $2.34 11 kW $18,018 12 years $20,247 Louisiana $2.57 12.5 kW $22,488 14 years $13,646 Maine $2.83 5.7 kW $11,886 10 years $25,880 Maryland $2.77 10 kW $19,390 12 years $21,395 Massachusetts $2.94 6.5 kW $13,377 8 years $33,013 Michigan $2.81 7 kW $13,769 10 years $23,652 Minnesota $2.84 8 kW $15,904 12 years $17,546 Mississippi $2.64 11.5 kW $21,252 13 years $20,147 Missouri $2.59 10.5 kW $19,037 13 years $18,292 Montana $2.54 9 kW $16,002 13 years $15,189 Nebraska $2.83 10.5 kW $20,801 14 years $13,421 Nevada $2.52 10 kW $17,640 12 years $18,319 New Hampshire $2.91 6.5 kW $13,241 9 years $28,409 New Jersey $2.77 7 kW $13,573 10 years $23,806 New Mexico $2.68 7 kW $13,132 12 years $15,413 New York $2.94 6.5 kW $13,423 10 years $24,387 North Carolina $2.54 6 kW $13,815 13 years $20,035 North Dakota $2.42 11 kW $18,634 13 years $26,028 Ohio $2.56 9.5 kW $16,128 12 years $19,272 Oklahoma $2.62 11 kW $20,174 14 years $14,190 Oregon $2.60 9.5 kW $17,290 14 years $23,058 Pennsylvania $2.55 8.5 kW $15,173 10 years $23,634 Rhode Island $2.84 6 kW $11,928 8 years $34,519 South Carolina $2.72 11 kW $20,944 12 years $24,561 South Dakota $2.39 10.5 kW $17,566 12 years $22,923 Tennessee $2.49 12 kW $20,916 13 years $19,688 Texas $2.69 8.5 kW $21,654 13 years $21,350 Utah $2.68 8 kW $15,008 14 years $10,202 Vermont $2.87 6 kW $12,054 9 years $26,468 Virginia $2.75 11 kW $21,175 12 years $21,692 Washington $2.69 10 kW $18,830 16 years $10,846 West Virginia $2.64 11 kW $20,328 13 years $19,893 Wisconsin $2.60 7 kW $12,740 10 years $21,005 Wyoming $2.57 9 kW $16,191 13 years $14,959

*When you pay upfront

How much do solar panels save?

Switching to a home solar system could reduce your energy bill by 75%. The savings you see will vary based on your electricity rates, the climate and your particular energy needs.

Like a lot of solar energy customers we talk to, Brandie in Texas took their “electricity bill down significantly, so even with the price we're paying for the solar panels and the amount of electricity we're using … it's still much cheaper than what we were paying before we had them.” Diana in Pennsylvania told us their electric bills are between $0 and $10, even in the summer, after going solar.

Depending on your out-of-pocket costs for a solar power system, it could take seven years or longer to break even, according to Wayne Turett, the founder of The Turett Collaborative, an architectural firm that specializes in sustainable designs.

The average U.S. electric bill is $80 to $178 per month, according to the U.S. Energy Information Administration.

The good news is we expect to see solar hardware continue to get cheaper, thanks to advancements in technology and increased competition in the market.

» EXPLORE: Most efficient solar panels

Other cost factors to consider

Some people do see their electricity bills go back up if they run into a problem with their system — like Eunice in Nevada, who didn't realize their inverter needed to be replaced, which led to an unexpected increase in their utility costs.

“Everything had been going well and my energy bill had averaged $13 to $15 a month,” Eunice said. “Until I received a bill at the end of September 2022 in the amount of $429 from NV Energy.”

So, keep in mind that maintenance, including panel cleaning and occasional repairs (depending on the warranties), adds to the overall cost. Most solar energy companies offer monitoring apps that help you see how much energy your system is producing and when maintenance may be required.

» COMPARE: Solar energy pros and cons

How can I pay for solar panels?

Like buying a new car, you can pay the full cost of solar panels upfront, but most people don’t.

Homeowners and business owners often use loans, solar leases or PPAs to pay for or avoid paying upfront costs. You might also consider a cash-out refinance or HELOC.

Cash

If you can pay cash, it’s usually cheaper in the long run. For example, consider this review from David in California:

“Financing it was $18,000,” he said. “But if I paid cash, it was $15,000 and they gave me a $1,000 debit card. It only cost me $14,000. I'm totally satisfied. I haven't paid any electric bills in six months now. I'd recommend it to anybody.”

» MORE: What is solar panel ROI?

Solar loan

In general, solar loans work a lot like any other kind of loan: There’s an application and approval process, and you repay the loan amount in installments over time. Whether it makes sense for you comes down to your terms and break-even point.

A solar customer we talked to, Christian in California, said they “did the math” and everything worked out.

“Instead of paying $100 or $200 for the electric bill, if I use the same amount of energy or less, I will end up paying just the financing, which is $150,” they said. “But only for six years, and then after that, the panels will be mine and I don't have to pay anymore.”

Just remember to pay attention to the interest rate. Another reviewer in California said they're “paying more for the loan payment than I save from the utility. Interest payments alone are over $1,000 per year and this will continue for a long, long time.”

» MORE: Best solar financing companies

Lease

With a solar lease, you don’t own the equipment. Instead, you make monthly payments to use the solar energy system for the duration of the lease term. Your leasing company is responsible for maintaining and repairing the solar panel system during this time.

Another solar power customer, Dan in California, said he “opted for the lease approach instead of a purchase. So, we did not have to put any money upfront at all. Zero. I work in finance/accounting and generally feel that if it sounds too good to be true, it usually is. But in this case, it truly has turned out even better than we could have hoped for.”

At the end of the term, you typically have the option to renew the lease, purchase the system at fair market value or have the leasing company remove the system from your property.

» LEARN: How does a solar lease work?

Power purchase agreement

A power purchase agreement (PPA) is another way to get solar panels installed on your property without paying for them upfront.

An energy service company (ESCO) installs the panels for you but owns and maintains them. You then purchase the electricity generated by the solar panels from the ESCO at a fixed price.

You can still save money on your electricity bills with a PPA, but some reviewers said they've felt stuck with a company.

» WHAT’S THE DIFFERENCE? Solar lease vs. solar PPA

Find a Solar Energy partner near you.

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FAQ

Do solar panels increase the value of your home?

In general, installing solar panels is a good investment. Studies show that homes with solar panels sell for more than homes without them, and that increase in value can be significant.

• A study by the Department of Energy’s Lawrence Berkeley Laboratory found homes with solar panels sold for an average of around $15,000 more than comparable homes without solar panels.
• A National Bureau of Economic Research study found that solar panels added an average of $20,194 to the sale price of homes in the San Diego and Sacramento areas.
• Zillow found that homes with solar panels sold for an average of 4.1% more than comparable homes without solar panels.

How much value the solar panels add depends on your system's quality, location and other factors.

» EXPERT TIPS: How to save energy at home

How many solar panels do I need?

How many solar panels you need varies based on your energy usage, the efficiency of the panels and other factors.

The average household uses 886 kWh per month in electrical power, according to the Energy Information Administration.

A solar panel typically produces about 1.5 kilowatt-hours (kWh) per day, so if your daily kWh usage is 30, you would need 20 solar panels to generate all of your energy needs.

• Energy usage: To estimate the amount of energy you’ll need, you need to know your average kWh. This number should be on your utility bill as “kWh used.” To get your monthly average, look at bills for the past year, add up the stated kWh used and divide by 12.
• Panel output: Next, you need to find the solar panel output, which is the amount of energy the panel can produce per hour of sunlight it receives.

» WHAT’S THE DIFFERENCE? kW vs. kWh

How does net metering work?

Sometimes, you might make more electricity than you need, especially on sunny days.

Net metering is a system that lets you send this extra power your panels produce back into the power grid (the big network of wires that carries electricity to everyone’s houses). In exchange, you get a credit on your electricity bill.

This also means that if your solar panels don’t generate enough electricity (like on cloudy days), you can still use electricity from the grid without paying for it because you’ve already earned credits through net metering.

A reviewer in Texas explains how it worked for them: “When I first signed up, my contract was a net metering, so I paid a certain cost of kilowatt-hours used, and the utility company purchased back from me at that same price. If I generated 200 and consumed 200, my net usage was zero, and my bill was essentially zero. My contract ended and I had to renew it."

They continued: “Now, I'm paying 21 cents a kilowatt-hour for usage, and I'm only getting back 10 cents a kilowatt-hour for anything I push back to the grid. There's another $40 a month service fee from the utility company as well. So the incentive isn't quite what it was a year ago. Still, it's a good value.”

It’s a win-win situation: You save money on your bill, and the power grid gets more renewable energy to distribute to people who need it.

» MORE: Greenest states in the U.S.

How are solar panels installed?

Installing solar panels typically takes only a few days. The technicians install wiring connecting the panels to an inverter, which converts the DC power generated by the panels into AC power for use in your home.

“One of the most common misconceptions is that going solar is a complicated process that involves a lot of work and expensive equipment,” said Alan Duncan, founder of Solar Panels Network USA. “In reality, the process of buying and installing solar panels is relatively straightforward, and many companies offer turnkey solutions that take care of everything from the design to the installation of the system.”

Once the installation is complete, an inspector checks the system to ensure it meets local safety and building codes. The system is then connected to your utility's power grid. If you’re not grid-connected, you’ll need to get a battery to store solar energy.

Once that’s done, your solar panel system is activated and ready to generate electricity. You can monitor the system's performance and energy production using a monitoring system provided by the installer.

» READ: Solar panel installation guide

Bottom line: Are solar panels worth it?

After incentives, the general range is $10,000 to $30,000 for an average American household to invest in solar panels. This includes the cost of the panels themselves, installation and any additional equipment needed.

Whether or not it’s worth it for you depends on how much you can save on your electricity bill. If you aren’t financially ready to install solar panels yet, you still have options to incorporate solar technology into your life with solar phone chargers and passive solar home design.

» NEXT: 7 steps to going solar

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By Alex Hawkins

Affiliate Disclaimer: All products and services featured are independently selected by our editors. However, when you buy something through our retail links, we may earn an affiliate commission.

Solar panels can cost anywhere from $17,430 on the low end to $23,870 on the high end with a national average cost of $20,650.* Solar panels are a considerable investment. Various factors influence your project price, including the panels you choose, your home’s energy needs, and applicable state and federal tax incentives.

We have conducted in-depth research on the best solar companies in the United States and the industry overall. This guide breaks down the significant factors that influence what solar panels cost, as well as the national average for a solar energy system.

*All cost data in this article is based on 2023 data from EnergySage, Consumer Affairs, Home Advisor, and Angi.

 

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Average Cost of Solar Panels

Though solar pricing varies by location, system size, and other project variables, EnergySage data shows these figures as the national average:

Price SpectrumAverage Cost

Low end

$17,430

Middle

$20,650

High end

$23,870

 

 

How Much Do Solar Panels Cost in Each State?

Solar panel costs can vary according to your state’s energy rates and access to solar technology. Check the table below to get an idea of what solar panels might cost you in your state.

StateAverage Cost Per Watt*Average Cost for 6 kW System*Average Federal Tax Credit Value

Alabama

$2.45

$14,700

$4,410

Alaska

$2.41

$14,460

$4,338

Arizona

$2.44

$14,640

$4,392

Arkansas

$3.06

$18,360

$5,508

California

$2.86

$17,160

$5,148

Colorado

$3.44

$20,640

$6,192

Connecticut

$3.22

$19,320

$5,796

Delaware

$2.75

$16,500

$4,950

Florida

$2.58

$15,480

$4,644

Georgia

$3.20

$19,200

$5,760

Hawaii

$2.67

$16,020

$4,806

Idaho

$2.93

$17,580

$5,274

Illinois

$3.16

$18,960

$5,688

Indiana

$3.63

$21,780

$6,534

Iowa

$3.45

$20,700

$6,210

Kansas

$2.39

$14,340

$4,302

Kentucky

$2.34

$14,040

$4,212

Louisiana

$3.17

$19,020

$5,706

Maine

$3.45

$20,700

$6,210

Maryland

$3.13

$18,780

$5,634

Massachusetts

$3.54

$21,240

$6,372

Michigan

$3.78

$22,680

$6,858

Minnesota

$3.45

$20,700

$6,210

Mississippi

$2.64

$15,840

$4,752

Missouri

$2.85

$17,100

$5,130

Montana

$2.42

$14,520

$4,356

Nebraska

$2.83

$16,980

$5,094

Nevada

$2.60

$15,600

$4,680

New Hampshire

$3.61

$21,660

$6,498

New Jersey

$2.95

$17,700

$5,310

New Mexico

$3.39

Additional resources:
Energy Storage Systems Pros and Cons
What if you can't run a generator 20 ft away from the house?
6 Common Mistakes to Avoid When Installing Solar Panels
What are the top 3 solar power?
Generac Generator Won’t Start. How to Fix Fast? (Expert Tips)
Which company made solar panel is best?

$20,340

$6,102

New York

$3.48

$20,880

$6,264

North Carolina

$3.04

$18,240

$5,472

North Dakota

$2.42

$14,520

$4,356

Ohio

$2.98

$17,880

$5,364

Oklahoma

$2.62

$15,720

$4,716

Oregon

$3.02

$18,780

$5,634

Pennsylvania

$3.06

$18,360

$5,508

Rhode Island

$3.61

$21,660

$6,498

South Carolina

$2.89

$17,340

$5,202

South Dakota

$2.39

$14,340

$4,302

Tennessee

$2.97

$17,820

$5,346

Texas

$2.77

$16,620

$4,986

Utah

$2.69

$16,140

$4,842

Vermont

$3.14

$18,840

$5,652

Virginia

$3.04

$18,240

$5,472

Washington

$3.25

$19,500

$5,850

West Virginia

$2.92

$17,520

$5,256

Wisconsin

$3.41

$20,460

$6,138

Wyoming

$2.57

$15,420

$4,626

Get a Quote on Your Solar Installation

 

 

Solar Panel Cost Breakdown

EnergySage estimates that the national average cost for a typical 6-kilowatt (kW, or 6,000 watts) residential rooftop solar system is roughly $20,650 before any federal tax credits or local incentives.* Overall, you should expect to pay anywhere between $17,430 and $23,870, depending on your system size and location.

The total cost of a solar system includes solar panel prices, which vary in price by brand and type, installation labor, system size, and additional equipment. A solar installation company will charge a combination of labor costs and a price per watt for each solar panel.

*Based on a June 2023 report.

Types of Solar Panels

The type of solar panel you order will influence your total price. Below is a breakdown of the three most popular types of solar panels and their average price. 

• Monocrystalline:

  Monocrystalline panels are considered the most efficient solar panels , with an average efficiency rate of 24%.

   However, they are also the most costly. The

  average cost

  for

  monocrystalline

  solar panels is $1 to $1.50 per watt. Therefore, a standard

  6kW system costs

  between $6,000 and $9,000.

• Polycrystalline:

  Polycrystalline panels

  are a more cost-effective option

  up front

  . However, they feature a lower efficiency rate than mono panels, at an average of 20%. The

  average cost

  for polycrystalline solar panels is $0.90 to $1 per watt, or $5,400 to $6, total for a 6 kW system.

• Thin-film:

  Thin-film solar panels are less popular for

  residential solar systems

  . They tend to cost around

  $0.70 to $1 per watt

  . That’s roughly

  $4,200 to $6,000

  total for a 6 kW system. 

Labor

Installation costs—including labor and permits—average around 25% of the cost of the solar panel system itself. So, for example, if you purchase a 6-kW monocrystalline solar panel system for $20,000, then a solar installation company will likely charge approximately around $25,000 for the system and the installation, combined. The installation of a larger system will naturally increase labor costs.

System Size

Determining the right system size for your property requires looking at a few factors: energy needs, roof size, and layout. You can determine how much energy it typically takes to power your home by looking at your monthly electric bill. We’ve included more on this in the next section. The size and shape of your roof, or wherever you intend to install the panels, also influences the system you can install. EnergySage estimates that the typical household needs an average of 19 panels to fulfill its electricity needs, which is roughly a 7-kW system.

Additional Equipment

Residential solar systems also typically require a battery to store energy and an inverter, which converts the variable direct current (DC) output of your PV solar panels into alternating current (AC). Most solar companies will include these components in your solar system’s design. However, if you request specific brands of inverters or batteries, they may come at a premium.

Get your Solar quote today

 

 

Solar Incentives and Rebates

Most states offer several solar tax credits and rebates that help purchasers save money, incentivizing them to switch to solar and power their homes more sustainably. You can check on your state’s Department of Energy website to learn which programs are available in your area and on websites such as EnergySage and the Solar Energy Industries Association (SEIA).

Common state-level solar incentives include:

• Renewable energy tax credits

• Sales and property tax exemptions

• Solar easements and right-to-solar laws

At the local level, many utility companies offer net-metering programs that allow solar owners to send any excess energy their system generates to the power grid, earning them credits in return. If the system owner ever needs to rely on the power grid for electricity during cloudy days or at night, they can use their credits to pay their utility bill.

The biggest financial incentive is the federal solar tax credit (ITC). This federal-level credit lets solar buyers claim 30% of the total system cost on their income taxes the year of installation. However, this credit is only for those who own their system, meaning anyone who buys it outright or via a solar loan. Those with a solar lease or power purchase agreement (PPA) are not eligible.

We recommend using the Database of State Incentives for Renewables & Efficiency (DSIRE) to see which solar rebates and state tax credits you can receive.

 

 

Other Factors to Consider About Solar Panel Costs

In addition to the cost per watt for each solar panel, other factors influence the overall cost of a solar power system. We have listed some of the most critical factors for you below. 

Energy Needs

 

Take note of your current cost of electricity, as switching to solar may or may not save you money on your energy costs. The larger your home and higher your monthly electric bill, the more benefits you are likely to see from switching to solar. A solar system can eliminate a homeowner’s electricity bill in some instances.

On the other hand, if you already have relatively low utility bills, you may not see enough savings to justify the expense of installing a home solar system. 

Location

The location of your home plays a vital role in how much money solar panels can save you. Using data from the Centers for Disease Control and Prevention (CDC), the data analysis site Stacker determined that states such as Arizona, California, Colorado, and Florida are among the sunniest in the country, making these top locations to get great sun exposure. The sunnier the state and the higher the electricity rate, the more return on investment that location will see.

Roof Type

You can use a solar panel system even if you don’t live in these blue-sky states. Most solar panel installers use photovoltaic (PV) panels, which can absorb both direct and indirect sunlight. However, these solar panels generate the most energy on angled roofs that allow maximum sun exposure. On the other hand, a flat roof will require the construction of angled platforms, which will add to your labor costs and increase the overall cost of your solar system installation. 

Additionally, south-, west- or southwest-facing roofs get more sun exposure. For example, a home that experiences less shade and has a south-facing roof with a slope between 15 and 40 degrees will receive the most sunlight. Therefore, these homes receive and retain more solar energy. On the other hand, a home with trees around it or in a less sunny region, like the Pacific Northwest, may not save as much money as a homeowner in Arizona or California. 

Your roof’s age and structural soundness will also influence the overall cost of solar panel installation. Repairing your roof or upgrading your roofing material to support panels will come at an additional expense ahead of installation and affect your total cost.

Payment Options

Solar providers offer various payment methods that influence how cost-effective your investment in solar is. Here are the four payment options you can choose from with most solar companies: 

• Purchase:

  Paying for your solar system up-front is the most cost-effective payment method for a solar system. Not only will you avoid paying interest over time, but you will also be eligible to file for the federal tax credit at your next income-tax filing.

• Solar Loan:

  Solar companies

  understand that not every

  homeowner

  is willing or able to pay for their system

  up-front

  , so they partner with a lending company to provide loan options. As with all bank loans, your interest rate will depend on your credit score.

• Solar Lease:

  Some homeowners may elect to lease their solar panel systems. With this arrangement, the

  solar company

  still owns the system, and you pay a set monthly amount for the installed solar panels. This option is not as

  cost-effective

  over time as purchasing or financing your system, as you are not eligible to receive state or federal incentives. However, you avoid paying hefty up-front sums.

• Power Purchase Agreement (PPA):

  A

  solar PPA

  lets you pay little to nothing for the actual installation of the PV system. Instead, you pay monthly payments to a

  utility company

  based on the energy generated by the system. Think of this as if you are paying for your usual

  electricity bill

  . As with a lease, you don’t own the system and are thus ineligible for tax incentives.

 

 

Are Solar Panels Worth the Cost?

In most cases, solar panels are worth the cost. Transitioning to clean energy saves you money and reduces your carbon footprint, fossil fuel use, and greenhouse gas emissions. Nonetheless, the worth of solar panels varies across households and locations.

There are a few things to consider when determining whether solar panels are worth it for you, such as:

• Your energy usage:

  If you have a smaller home, don’t use many appliances, and tend to keep the lights off, you may not use enough power to make switching to solar worth the investment. The cost of electricity in your area also plays a role. The higher the cost, the more value you’ll get from going solar.

• Your payback period:

  If it takes an excessive amount of time to pay off your panels before you can start enjoying the energy savings, you may be better off financially not getting a system. Read more about

  payback periods

  .

• Your property location and position:

  Those in areas that see year-round sun will get more value from solar panels, as will those whose roofs get good sun exposure.

• Your roof size and dimensions:

  The best place to install solar panels for most households is on the roof due to fewer obstructions to solar exposure. If your roof is too small or oddly laid out to fit the number of panels you need, getting a system may not be worth it.

One thing that may make getting solar panels worth it is increased property value. The U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) found that your home value increases by $20 for every $1 you save on your utility bills. If your solar panel system saves you $800 per year, that translates to an added $16,000 to your home value. Learn more about how to determine if solar panels are worth it for you.

 

 

Hidden Costs of Solar

Maintenance, energy storage, and other costs are necessary to protect your system and get the most value out of it. Common associated costs include the following:

• Cleaning:

  Your panels may need professional cleaning from time to time. Rainfall may be enough to keep your panels clear of debris, but if you live in an area prone to wildfires, dust, or heavy pollen, this layer of debris can prevent your panels from performing at their best.

• Insurance:

  Installing solar panels often comes with a home insurance increase. Some states require solar-specific insurance in addition to your usual insurance coverage.

• Maintenance:

  Solar panels require minimal maintenance. Most installers recommend examining panels every few years to inspect wiring and connections. The cost of professional maintenance isn’t substantial, but it’s one to be aware of.

• Property tax:

  Most states waive property taxes on any additional home value installing solar equipment gives you, but if yours is one of the few that doesn’t, you’ll see your tax bill go up.

• Repairs:

  There are occasions when solar panels require repair work if there’s a bad storm or you notice they’re not performing as they normally do. If insurance doesn’t cover repairs, you’ll have to pay out of pocket.

• Roof work

  : If your roof is old or damaged, you must address this before installing panels. You don’t want to install panels over any damage, and a roof that’s 10 years or less from needing replacement should just be taken care of before laying down panels. Depending on your roof’s condition, this can be the highest or second-highest hidden cost.

• Solar battery:

  Many homeowners purchase

  solar batteries

  with their systems. Solar batteries store excess energy and let you use this energy to power your home at night, during blackouts, or when utility rates are high.

• System monitoring:

  If you opt to use a solar company’s active monitoring, there’s sometimes a monthly fee included.

 

 

Solar Panel System Installation

Most solar companies follow these steps for installations:

1. Site evaluation:

   An installer will visit your home to confirm the planned design and estimate the scope of work. This person or their team will also inspect your roof, attic, and electrical setup.

2. Permit approval:

   Most states require a permit to install solar panels. Your solar provider should handle the paperwork with your local municipality.

3. Installation:

   Installation typically takes one to three days. You don’t need to be home for it, but we recommend it so you can ask questions.

4. Cleanup:

   Installers should remove debris and leave your property in good condition.

5. City inspection:

   Your provider should coordinate with your city to have an inspector check that your system is up to code.

6. Utility connection:

   Your system must be connected to your local utility system if you’re connecting it to the grid. You’ll apply for connection through your utility company. Your utility company will also want to inspect your system to ensure it follows its utility guidelines. You can turn your system on after you get permission to operate.

 

 

Our Recommendation

Residential solar panels help you cut electricity costs and carbon emissions. Installing solar panels may be a good choice if your location has high electricity costs, solar incentives to help you save money, and a reasonable payback period so you see energy savings sooner.

You can use the tool below to get a sense of what solar costs are like in your ZIP code.

Homeowners Save $20,000 to $97,000 with Solar Panels on Average Over Typical System Life Span

Get a Quote on Your Solar Installation in 30 Seconds

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Solar Panel Costs FAQ

Is solar energy a good investment?

As the solar industry continues to grow and the average cost of solar panels continues to decrease, solar energy is panning out to be a good investment for many homeowners. Choosing renewable energy can result in a considerable reduction in your electricity bill. Additionally, various tax incentives, like state-issued Solar Renewable Energy Credits (SRECs) and the federal solar tax credit, may allow you to earn more money over the system’s life than you spend on it.

Do solar panels eliminate electric bills?

Solar panels can eliminate your electric bill. However, factors such as your home’s location and the typical electricity rates will influence whether or not your energy bill disappears with solar energy.

What is a payback period? 

A payback period refers to the amount of time it takes for the cost of an investment to break even. For a PV solar system, the energy production needs to match your energy usage. The National Renewable Energy Laboratory (NREL) reports that the average payback period for a PV solar system is four to 10 years.

How many solar panels do I need for a 1,500-square-foot home?

EnergySage estimates you’ll need 12 or 13 panels on average to power a 1,500-square-foot home.

How long do solar panels last?

According to the Office of Energy Efficiency & Renewable Energy (EERE), most solar panels last 30 to 35 years.

 

 

How We Chose the Top Solar Companies

We researched and analyzed dozens of solar panels and solar installation companies. We then formulated a rating system based on each solar installer or manufacturer’s services and products. We weighed several significant factors, including the quality and type of solar panels offered, the customer support network, warranty lengths and limitations, and additional benefits such as mobile apps for monitoring and customer service.

Speaking directly to representatives, we determined how each solar company personalizes its solar panel installation for each home. We also analyzed each company’s warranty options to ensure their product and performance guarantees match or exceed industry standards.

We evaluated each provider based on their rating and history with the Better Business Bureau (BBB) to determine reputation. In addition, we analyzed the 100 most recent Google Reviews for each provider across various locations and branches.