Depending on the style and model, solar panels can cost anywhere from $3,500 to $35,000, or around $16,000 on average. Solar panels can reduce your energy costs, but knowing how much a solar panel would cost initially will help you set a budget.
In this article we will discuss about What Is the Price of a Solar Panel, (In 2022-2023).
Despite the fact that solar energy is more affordable than ever, it is important to comprehend how household solar systems operate as well as general pricing guidelines for equipment and ongoing maintenance. You may prevent overpaying for your solar panels by being aware of this.
The cost of solar panels as a whole keeps decreasing as solar energy becomes more widely used and accessible. The average cost of a home solar array has dropped by more than 60% over the last decade, from more than $50,000 for a 6-kilowatt-hour (KWh) array in 2011 to between $16,000 and $21,000 in 2021.
Solar energy is a popular alternative energy source that can help you save money on energy while also increasing the value of your property. Our cost of solar panels review will help you learn more about the benefits and drawbacks of a solar system.
Table of Contents
Average Cost of Solar Panels:
| Lowest Cost | $3,500 |
| Average Cost | $16,000 |
| Highest Cost | $35,000 |
What Is the Price of a Solar Panel?
It costs money to switch to solar energy, both upfront for equipment and during installation. The only continuous cost beyond that initial investment is the electricity you use in excess of what your solar panels produce.
If a homeowner’s solar system is the right size for their home, is correctly built, and is maintained, they will frequently see long-term savings on electricity bills and a payback on their investment in a number of years.
The average cost of a home solar installation in the United States, as reported by the Solar Energy Industries Association, is $2.94 per watt. * A 5-kW system, which is the typical size of a household solar system in the United States, costs little under $11,000 per watt, in contrast.
Depending on the brand and reseller, solar panels might cost different amounts. But keep in mind that the price of installing a solar system as a whole, including solar panels, is incredibly low. The installation (together with supporting equipment) and ongoing maintenance of the solar panel system are the remaining costs.
Solar Panel Installation Costs By Size:
| Solar Panel Size | Average Solar Installation Costs |
| 3 kW | $9,225 |
| 4 kW | $12,035 |
| 5 kW | $14,893 |
| 6 kW | $18,500 |
| 7 kW | $21,008 |
| 8 kW | $24,552 |
Solar Panel Prices By State
Solar panel prices in the United States typically include both equipment and installation services. Learn more about local incentives and tax credits in your area by visiting the Solar Energy Industries Association website.
When available, it’s usually in your best interest to take advantage of government renewable energy initiatives because it lowers your upfront expenditures and shortens your payback period. According to our data, Washington is the greenest state, followed by Oregon and New Hampshire.
| State | Starting cost for 6-kW system* | Average cost per watt** | 2020 federal tax credit value (26%) | 2021 federal tax credit value (22% |
| Alabama | $13,706 | $2.45 | $3,564 | $3,015 |
| Alaska | $13,454 | $2.41 | $3,498 | $2,960 |
| Arizona | $13,680 | $2.67 | $3,557 | $3,010 |
| Arkansas | $14,713 | $2.63 | $3,825 | $3,237 |
| California | $15,240 | $2.68 | $3,962 | $3,353 |
| Colorado | $17,100 | $2.44 | $4,446 | $3,762 |
| Connecticut | $15,540 | $2.65 | $4,040 | $3,419 |
| Dist. of Columbia | $15,720 | $2.88 | $4,087 | $3,458 |
| Delaware | $15,300 | $2.65 | $3,978 | $3,366 |
| Florida | $13,920 | $2.41 | $3,619 | $3,062 |
| Georgia | $15,840 | $2.33 | $4,118 | $3,485 |
| Hawaii | $19,560 | $2.67 | $5,086 | $4,303 |
| Idaho | $17,100 | $2.52 | $4,446 | $3,762 |
What Size Solar Panel System Do You Need?
An average household consumes 905 kWh of power every month, or around 10,850 kWh per year. To cut utility expenditures, an average-sized home with adequate sunlight might install a 5kW to 6kW solar panel installation.
You might be interested in learning about your solar sun number score depending on your home’s location and typical sunshine exposure. For extra context, consider the various dimensions and sizes of solar panels.
- The lower the cost per watt, the larger the solar panel system you install for your home. The cost per watt varies between $6 and $8 per watt, including solar panels, parts, labour, permits, and overhead.
The money you save on power bills with solar panels can more than cover the initial installation costs in 7 to 20 years. There are numerous solar rebates and incentives available from both the government and local energy providers, which can greatly expedite your return on investment.
You may also be able to participate in the sale of excess electricity generated by your solar panels in your neighbourhood if Net Metering is available.
Prices Of Solar Panels By Type
Monocrystalline Solar Panels
Monocrystalline solar panels are noted for their high efficiency and extended lifespan because they are constructed from a single silicon crystal. Additionally, they cost more than other kinds of solar panels, such silicon solar panels consisting of numerous silicon crystals and known as polycrystalline solar panels. Monocrystalline solar panels are a common option for home and commercial solar energy systems since they are frequently more robust and have a higher tolerance for high temperatures. Nevertheless, they are also more compact per watt than polycrystalline solar panels.
The most energy-efficient option was monocrystalline solar panels, which on average cost $1 to $1.50 per watt. This means that the cost of a 6-kW solar panel system, often known as a solar system, will range from $6,000 to $9,000.
Polycrystalline Solar Panels
Multiple silicon crystals are used to create polycrystalline solar panels, sometimes referred to as multicrystalline solar panels. They are a common option for household and commercial solar energy systems since they are less expensive than monocrystalline solar panels. In comparison to monocrystalline solar panels, they are often less efficient and have a shorter lifespan. In contrast to monocrystalline solar panels, they also occupy greater space per watt. In settings with high temperatures, they frequently perform somewhat worse than monocrystalline panels. The key benefit of polycrystalline solar panels is their reduced cost per watt, which makes them an excellent option for larger solar projects.
Polycrystalline solar panels are less energy-efficient than monocrystalline solar panels and cost $0.90 to $1 per watt, so outfitting a 6 kW solar panel system would cost between $5,400 and $6,000, making it a more affordable option.
Thin-Film Solar Panels
A thin coating of amorphous silicon or another photovoltaic material is deposited onto a substrate consisting of glass, plastic, or metal to create thin-film solar panels. The advantage of being flexible and lightweight outweighs their lower efficiency compared to monocrystalline and polycrystalline solar panels. Additionally, they can be produced with less silicon and at a lower cost.
A few uses, such building-integrated photovoltaics (BIPV) and portable solar panels, call for thin-film solar panels because they are less sensitive to shading and can function better in low light. Additionally, because of their lower temperature coefficient, they can operate more effectively in warm conditions.
Thin-film solar panels typically cost between $1 and $1.50 per watt, implying that a 6kW solar panel system will cost between $6,000 and $9,000 to install. Thin-film solar panels are less expensive than their counterparts, but they require a lot of area and are hence mostly employed in industrial settings.
Solar Panel Installation Costs
The cost of installing solar panels might range from $15,000 to $25,000. The cost of solar power varies according to geography, costing more in areas distant from the equator, like Alaska, and less in areas with abundant sunlight.
Additional Solar Panel System Prices
To acquire the most accurate price estimate for your solar energy system, you should add a few factors to the total cost. Here are some other elements that influence the cost of your solar panels:
- Labor expenses for solar installation will vary depending on your region and the usual cost paid by solar installers in your area.
- Installing Solar Mounts – The cost of installing the racks that hold your residential solar panels has an impact on prices as well. There are several solar mounting possibilities.
- Solar Inverter Installation – To convert Direct Current (DC) from the solar panels to Alternating Current (AC) for use in your home, a solar inverter must be installed. Other expenses There may also be costs for municipal permit fees, inspection fees and taxes on the solar panels.
With solar panel prices plummeting, this “solar panel soft cost” now accounts for the majority of the cost of installing solar for your home.
Fortunately, as more people utilise solar electricity, the soft cost has decreased, and this trend is likely to continue in the future. According to a study conducted by the federal government’s National Renewable Energy Laboratory (NREL), installed prices have dropped by 13% to 18% on a yearly basis.
How Many Solar Panels Will You Need?
Decide how much electricity you consume in your home and what types of solar panels are placed to determine how many solar panels you require.
The average residence in the United States consumes approximately 900 kilowatt hours (kWh) per month, or approximately 11,000 kWh per year. By reviewing your electric bill, you may quickly compute your real consumption. As a basic guideline…
- A 3-kWh solar system produces between 3,600 and 4,800 kWh annually.
- A 5-kWh system produces around 6,000 – 8,000 kWh per year.
- A 10-kWh system may generate between 12,000 and 16,000kWh annually.
Depending on the system size, the solar panels would cost between $4,000 and $16,000. The price of solar inverters, panel racks, wiring, and other necessary components can range from $3,000 to $10,000 more, bringing the total expense of installing solar panels close to $20,000.
When To Install Solar Panels?
Contrary to popular belief, winter is the best season for solar panel installation. Because there is less demand for this service during the winter, the installation should be less expensive overall. Even if you reside in a foggy and/or cool climate, your solar panels can still create electricity, and in some circumstances more energy than in warmer months.
Installing solar panels in winter is not only economical but also efficient. Because installers work less during the off-season, your panels will most likely be installed and ready to go in no time.
How Much Do Solar Panels Save?
Although solar panels are expensive up first, they will undoubtedly save you money in the long term. The number of solar panels you save is determined by a variety of factors, including the amount of direct sunshine available to the panels on a daily basis, the pitch of your roof, and the size of your solar panel installation. However, your local electricity costs are the most crucial aspect in determining how much money you’ll save with solar panels.
Calculate how much money your solar panels save you each year by calculating how much you spend on electricity each year (a typical American household spends roughly $1,450 on electricity per year). Then, establish your current electricity tariff, keeping in mind that electricity tariffs rise by roughly 2.2% every year (yet another reason to install solar panels).
Enter information such as your location, energy usage, and the current average cost of installing solar panels in your area into an online calculator to estimate your annual savings.
Solar panels, contrary to popular belief, can fully eliminate your electricity expenditures. While this is sometimes true, solar panels will greatly cut your monthly electricity bill and are well worth the investment.
In conclusion
Before tax credits or subsidies, the typical overall cost of installing a residential solar system is comparable to the cost of a new automobile. When deciding whether or not to put solar panels in your home, you must evaluate the cost of equipment and installation, as well as the cost or fees for labour, permits, inspections, and system maintenance.
Because the sun is a free source of energy, returns are great and maintenance costs are low once you’ve paid for your panels and installation.