The price of installing solar power on your residence varies based on many different things, like system size, location, and available incentives. Solar power systems, including solar panels and battery banks, provide a clean and economical way to generating your own electricity. With that being said, it is helpful to know the overall price ahead of time before going solar. This is what you can look forward to if you are to be thinking about installing a solar energy system on your residence:
The cost will be directly determined by the size of the solar energy system you need. In general, the larger the system, the higher the installation cost. Homeowners should calculate their average energy consumption to determine the ideal system size. On average, a home solar panel system is 5 kW to 10 kW, depending on your energy need.
High-quality panels like monocrystalline panels are more efficient and last longer than inferior panels. High-quality panels cost more but produce more power, so they will end up being cheaper in the long term. Prepare to spend more on high-efficiency panels, but how they perform in the long term might just return your investment.
Geographical location of your home may impact the installation cost. For example, areas with intense sunlight may generate more energy and therefore may require fewer panels, reducing the cost of installation. The permit and labor costs vary by area, which impacts the cost.
Putting battery storage in your solar system allows you to store excess energy to be used at a later time, something that can be helpful during the night or blackouts. But battery storage will add to the total cost. What type and size of battery you use will also determine how much your system will cost.
Installation charges tend to be 10-20% of the total cost of the solar power system. Complexity of installation, such as type of roof, system design, and electrical layout, will also decide labor expense. Additionally, some installers offer warranties or maintenance packages that add to the expense.
Governments offer tax credits, incentives, or rebates to home owners who install solar energy systems. In the United States, the Federal Investment Tax Credit (ITC) provides a 30% tax credit on solar installations. State governments and local utilities also offer additional rebates that may cut down the initial cost significantly.
The average cost of solar panel systems in the US is about $2.50 to $3.50 per watt. So for an average 6 kW system, the cost of installation would range from $15,000 to $21,000 before tax credits and rebates.
Installing a home battery storage system on top of your solar installation will cost approximately $7,000 to $15,000, depending on battery size and type. Popular brands such as the Tesla Powerwall or LG Chem RESU are usually in this pricing bracket.
Although the initial solar energy cost appears to be prohibitive, several homeowners have realized that they could recover their outlay in time through savings in energy and bonuses. The overall payback of solar installations will usually range between 6 and 10 years, depending on your area of residence, electricity consumption, as well as size of the solar system.
Once you have paid off the system, you will be able to get free electricity from the sun for the rest of the life of the system, which is typically 25 to 30 years. Solar energy systems will also increase your home's value, making it a long-term investment.
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