Going solar isn’t a cheap undertaking. You have to spend on various solar parts, obtain permits, and hire a qualified contractor to get the job done. While the initial costs appear steep, several ways to keep them manageable exist.
Keep reading to discover extra ways to lower the cost of solar panels so you can start saving on your energy bill.
How Much Do Solar Panels Cost?
Seventy-four percent of Americans cite cost as the primary barrier to adopting solar energy. However, the truth is that solar is becoming more affordable. The increased competition coupled with streamlined economies of scale has led to lower solar panel prices. On average, solar panels cost between $15,000 to $25,000.
Over the years, the cost of solar power has been dropping since many people are becoming eco-conscious. In response, authorities have stepped in to support the revolution through policies that keep the costs of solar power low. Additionally, you can recoup your investment within five to 10 years when you reduce reliance on grid power and lower your utility bills.
Ways To Reduce the Cost of Solar Panels
There are more ways to keep the costs of solar panels down. Some of these tricks include taking advantage of existing incentives and taxes. The specific cost-cutting measures you’d want to look at when trying to lower your solar panel costs include:
1. Tax Incentives
When you adopt solar, the federal government will let you deduct 30 percent of the money you spend on solar from your taxes in the form of an income tax credit. In addition, some states, like Arizona, have a similar tax incentive scheme that helps citizens recover part of the money they invest in a solar project through their state taxes.
2. Rebate Opportunities
Besides tax credits, you can lower the cost of solar panels by capitalizing on solar rebates. One such rebate is net metering. The billing arrangement allows you to send excess electricity to the grid. Afterward, you can redeem the credits when your solar system doesn’t produce enough energy. You may also be eligible for state-wide rebates depending on where you live.
3. Power Purchase Agreements (PPA)
Signing a Power Purchase Agreement is another excellent way to override the initial solar installation costs. In this arrangement, a solar energy company installs, maintains, and owns solar panels installed on your property. You buy the power at a cheaper rate than it would cost you to buy from the grid.
4. Off-Season Installations
Assuming you are not in a hurry, install your solar system during the off-season. This period falls around winter when the demand for solar power installation goes down. At this period, contractors offer competitive pricing and promotions to attract customers.
Let Solar Optimum Guide You in the Transition To Going Solar
Going solar is more than just the installation of panels. The project involves several processes, including securing tax incentives, choosing quality solar products, hiring a qualified contractor, and deciding how you will pay for it. If it’s your first time undertaking the project, you will likely overlook some critical steps. At Solar Optimum, we understand the benefits of starting your solar project on the right foot and will help you from planning to execution.
Contact us to get a free quote or download our Ultimate Guide to Going Solar to learn more about tax incentives and rebate opportunities to help lower your solar panel costs.
FAQs
Ways To Reduce the Cost of Solar Panels
- Tax Incentives. When you adopt solar, the federal government will let you deduct 30 percent of the money you spend on solar from your taxes in the form of an income tax credit. ...
- Rebate Opportunities. ...
- Power Purchase Agreements (PPA) ...
- Off-Season Installations.
Reduce Solar Panel Installation Costs
- Payment Plans. Most solar companies offer solar loans. ...
- The Federal Solar Investment Tax Credit. Also known as the ITC, The Federal Solar Investment Tax Credit is a program for those who are living in the United States. ...
- The Residential Solar Tax Credit. ...
- Choose an Honest Solar Company.
Costs will come down as we increase efficiency of the solar cells, as the modules last longer, and as we come up with more cost effective ways to manufacture and deploy the solar technologies.
How are solar panels getting cheaper? ›
Continued Technological Advancements
The solar industry is constantly evolving. Researchers and manufacturers are working on developing even more efficient solar cells and novel materials. These advancements are likely to result in increased energy output and further reductions in production costs.
How much is a solar system for a 2000 sq ft house? ›
Average Cost of Solar Panels in California per Square Foot
| House Size | Average Cost (Installed) |
|---|
| 1,000 sq.ft. | $4,880 - $25,680 |
| 1,500 sq.ft. | $6,420 - $29,280 |
| 2,000 sq.ft. | $9,760 - $32,100 |
| 2,500 sq.ft. | $14,640 - $38,520 |
You can buy a solar energy system with cash or a solar loan, or pay third-party owners for system access through solar leases and power purchase agreements (PPAs).
Are solar panel prices dropping? ›
It expects prices to continue falling in the coming years, from an average of about $250,000/MW in 2023 to roughly $150,000/MW by 2028. According to S&P Global analysis, US solar levelized costs of energy are forecast to fall from $39.58/MWh in 2023 to $28.25/MWh in 2028.
How can I maximize my solar panel profit? ›
Net metering allows you to exchange your electricity at the retail rate, meaning it could be worth just as much as you'd pay the utility for it. In some cases, this price includes transmission, distribution, and generation rates. Because of net metering, you can bypass a solar storage system or batteries.
How many solar panels do you need to power a house? ›
How Many Solar Panels Do You Need to Power a House? An average-sized home in the United States (2,480 square feet) will need about 15 to 22 full-sized solar panels to completely replace traditional energy sources. That being said, the exact number of solar panels needed for your house depends on several other factors.
Is solar actually worth it? ›
Most homes will find that the savings from solar panels will outweigh the costs, although it may take anywhere from a few years to decades to achieve. Solar systems are costly to install but require little maintenance over a lifespan of 20 to 30 years.
Solar panels can generate enough power to significantly lower your monthly electric bill — and if you're very lucky, even eliminate it. The higher your bill and the more of your electricity use you can offset with your system, the more likely you are to benefit from solar.
Will solar panels be cheaper in 5 years? ›
The price of solar panels is probably going to keep dropping over the next decade. Solar has already become half as expensive as it was 10 years ago. New federal incentives that are giving certainty to the solar industry will likely push the price down even further.
Will solar panels get cheaper in 2025? ›
By 2025, the price of solar panels is expected to continue dropping due to advancements in technology and increased production efficiency. Analysts predict that the cost per watt could fall to between $0.20 and $0.30, making solar energy more accessible for both residential and commercial use.
How to make solar energy more economical? ›
One way to reduce the cost of solar is to improve the efficiency of the solar panels. With a higher efficiency, fewer panels, or modules, need to be installed to reach a desired power target. This means less labor, less land and less hardware.
Is there a federal tax credit for solar panels in 2024? ›
Will there be a tax credit for solar in 2024? There will be a solar tax credit of 30% in 2024 throughout at least 2032. Per the Inflation Reduction Act of 2022, the credit will remain accessible and increase from 22% to 30%.
How do I maximize my solar charge? ›
Solar panels are most efficient when they're facing directly towards the sun so they can soak up as much sunlight throughout the day as possible. In the northern hemisphere, this means orienting your solar panels towards the south. In the southern hemisphere, you want them to face north.
How can I maximize my solar usage? ›
Run appliances during the day
cooling: run air-conditioners during sunlight hours and keep heat outside by closing doors and windows. heating: run electric heaters as much as possible during sunlight hours and keep heat inside by closing doors and windows. slow cooker: schedule your evening meal to cook during the day.
