How much do Solar Panels cost? — Cost of Solar Panels in 2021

How much do Solar Panels cost - Cost of Solar Panels in 2021
How much do Solar Panels cost - Cost of Solar Panels in 2021

How much do Solar Panels costLearn the Cost of Solar Panels in 2021.

The cost of solar panels: what price for solar can you expect?

With the cost of solar panels dropping every year, there’s never been a better time to go solar. A solar panel installation ranges in cost depending on a number of factors, including the size of system you want to install, your geographic location, and the type of equipment you want. That all brings us to the key question: how much do solar panels cost? Generally, solar panels will cost between $15,000 and $25,000.

In this article, we’ll break down the cost of solar by system size, state, and panel brand, all of which can significantly impact your final cost of solar panels. We’ll also dive into a few other factors that impact the cost you’ll pay for a solar installation.

Key takeaways about solar panel cost

  • The cost of solar panels as of July 2021 is about $20,474 ($2.76/W for a 10 kW system minus the 26 percent federal solar tax credit)
  • The cost of solar has fallen about 20 percent over the past 5 years – solar is worth it more now than ever before!
  • The best way to get a fair price for solar? Compare quotes on the EnergySage Marketplace, for free.

Solar panel system costs in 2021: average national pricing

On average, a 10 kilowatt (kW) solar panel installation costs $20,424 after taking into account the federal solar tax credit ($27,600, or $2.76/Watt, W, gross cost minus 26 percent with the tax credit factored in).

What is the average cost of a solar installation? For a 10 kW solar panel installation in the United States, quotes range from $17,612 to $23,236 after taking into account the federal solar tax credit ($23,800 to $31,400, or $2.38 to $3.14/W, gross pricing minus 26 percent with the tax credit factored in).

A note about pricing: gross vs. net costs

Throughout this article (and all around our website), we usually talk about solar panel pricing in terms of gross cost, aka the cost before any solar rebates and incentives that can reduce the upfront cost of solar, or even get you some money back over time. For example, our cost per Watt ($/W) figures throughout the rest of this article are always the gross cost. This is because solar rebates and incentives aren’t always available to everyone. Even the 26 percent federal solar tax credit isn’t always available for everyone to take full advantage of – you need to have enough tax liability to claim the credit.

Solar installations are a unique product – just based on your state and the manufacturer of your chosen solar panels, average solar panel costs can vary widely.

Solar panel cost by state

As interesting as it is to look at the average solar panel cost in the United States, it’s also very helpful to understand what solar will cost in each state, as prices can vary significantly depending on where you live. Why? There are a number of reasons, but one important factor to keep in mind is system size.

In general, states where homeowners need to use air conditioning more often have more average electricity used per household. As such, some of the largest solar panel systems are installed in sunny, warm states like Arizona and Florida. Why does this matter? For solar installers, the larger your system, the less they will usually charge per kilowatt-hour (kWh). It’s like buying in bulk at Costco – you might pay a higher sticker price, but your per-unit costs are lower when you buy more at one time. We’ll dive into this phenomenon more below.

Back to solar panels. In the end, this very roughly translates to lower $/W pricing in warm states and higher $/W pricing in cold states. But in the end, total pricing is usually close to a wash – warm states have a lower price per watt, but larger system sizes, and cold states have a higher price per watt, but smaller system sizes.

We’ve analyzed quote data from our solar marketplace to understand solar panel system prices by state. But as we said above, system sizes tend to be larger in states with lower pricing, so it’s not always fair to compare a 10 kW system in Florida to a 10 kW system in Massachusetts. Their energy needs are just too different. READ full Article here

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