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How much will solar panels cost to install on your home in 2023?

    How much will solar panels cost to install on your home in 2023?

    The price of installing solar panels on your home in 2022 may vary based on your location, your energy consumption, the equipment manufacturers you choose, and whether you do it yourself or hire a professional solar firm.

    Since more than 95 percent of households choose for a trustworthy local solar firm, our solar calculator below provides quotes for professionally installed systems in your region.

    System sizeNumber of solar panels*Average cost per wattAverage total cost (after tax credit)
    4 kW11$3.25$9,100
    6 kW16$2.95$12,390
    8 kW22$2.85$15,960
    10 kW27$2.75$19,180
    12 kW32$2.75$23,100
    14 kW39$2.60$26,936
    16 kW43$2.60$29,860

    How much does the installation of solar panels for a typical 2,000 square foot home cost today?
    In 2022, the average household solar panel installation will cost between $18,000 and $20,000, excluding any tax credits or other incentives that may be available in your area. This equates to between $2.75 and $3.35 per installed watt of solar, depending on region and solar system brand.

    Taking into consideration the federal solar tax credit, the whole cost reduces to between $12,600 and $14,000, which is over 80% less than the cost of solar 10 years ago. Our solar panel cost and savings calculator can identify local rebates for which you may qualify to reduce the initial investment.

    Aspects influencing solar panel installation prices

    1. Solar system size
      The installation cost of a solar panel system will be heavily influenced by the system’s size. The size of a solar system is measured in kilowatts (kW), which indicates the maximum amount of energy the solar panels can produce under ideal conditions. In contrast, kilowatt-hours (kWh) show how much power your solar panels create and how much your residence consumes.

    The size of the solar energy system you require will depend on how many kWh your home consumes and how much you wish to lower your monthly electric bill. The more your energy use, the larger the system you will need to pay your electric bill, which will increase the cost of your solar installation.

    However, bigger systems often have a lower cost per watt since the equipment can be purchased in bulk and other overhead expenses are spread out over a larger system.

    1. Your location
      The location of your property influences the cost of solar energy in several ways:

    How sunny the region is: The less sunshine your home receives, the more panels you’ll need to satisfy your energy demands and the more you’ll pay.
    Local and state incentives: The federal 30% solar tax credit, often known as the Investment Tax Credit (ITC), significantly decreases the cost of solar installation, but there are also a number of state and municipal solar rebates and tax incentives that can further reduce expenses. In our State Solar Incentive Guide, you may read more about the incentives for which you may qualify.
    Economic conditions: Solar panel costs can be determined by local competition between installers, work volume, cost of company overhead, labour expenses, and varying state and municipal legislation.

    1. Equipment type and manufacturer
      As with other products, the price of solar is determined by the brand. Solar panels from certain manufacturers are more expensive than those from others, but this does not always indicate superior performance.

    For example, Jinko Solar’s panels are far less expensive than premium manufacturers such as SunPower, yet have almost identical features and excellent customer evaluations.

    Solar panel brand is not the only factor that affects pricing. Other equipment utilised in a home solar system, such as the kind of inverter, will also affect the total cost of installation. Microinverters, for instance, are more expensive than string inverters, but they can increase electrical output.

    The type of solar panels installed can also have a little effect on the cost, although only minimally. The majority of solar panel systems are installed using monocrystalline solar panels, although some homeowners may choose for polycrystalline panels to reduce initial expenses.

    The established shelving system will also affect the cost of installation. If you reside in a region that gets significant snowfall or hurricanes, you may want a more durable rack system, which may increase the cost.

    How much should a solar panel installation cost?

    The SolarReviews Editorial Team estimates that a professionally built solar system will cost between $2.60 and $3.00 per watt in 2022.

    If you are being charged extra, there are likely more advantageous options available. However, if you spend less than $2.60 per watt, you run the risk of receiving substandard installation or customer service. In addition, solar businesses that charge such cheap costs may not generate enough money from their sales to provide you with the necessary customer service during the 25-year lifespan of your solar panels.

    You should choose a solar firm that has a solid reputation and will be in business for the long run.

    Solar battery pricing

    Adding energy storage to a solar power system will increase the installation price by at least $10,000. The good news is that solar batteries are covered by the solar tax credit, and you may even be eligible for additional battery incentives at the state level.

    Including the federal tax credit, the average cost of a solar panel system with battery storage is $20,000. The actual cost of installing a battery will vary based on the battery manufacturer and the number of batteries installed.

    Even though they are costly, solar batteries like the Tesla Powerwall and LG Chem are gaining popularity as extensive power disruptions become more frequent than ever. Batteries are also gaining popularity in regions with Time-of-Use power prices, as they enable households to reduce their electricity costs.