Home Improvement

How Much Does it Cost to Install Solar Panels?

| May 25, 2014 | 0 Comments

Solar panels Cost




Although all homeowners truly want to conserve energy and save money on their monthly utility costs, it can often be difficult. Not all household members are on the same energy conserving page and few people want to set the thermostat to an uncomfortable setting when it’s extremely hot during those summer months. Saving money is one thing, setting the thermostat so high you could bake biscuits on the living room coffee table is entirely another.

Between running air conditioners, washers/dryers and that 500 inch plasma TV with the remote control that looks more like a desktop keyboard can easily cause the meter outside our home to hum so fast the entire utility pole shakes day and night. Add in huge video game consoles and TVs in almost every room and our electrical bill is delivered by a semi-truck and takes a week to unfold.

So to say that most homeowners would really like to reduce their power consumption and save money every month is a huge understatement. We see those fortunate homeowners who have solar panels lined up on their roof and immediately two questions come to mind; “How much do they really save on utility costs?” and “How much it cost to have solar panels installed?”


Cost of Solar Panels

To be completely honest, solar panels are not typically cheap. In fact, they can be extremely expensive. Not only are the solar panels themselves expensive, but the costs involved in having them professionally installed is almost as expensive as buying them. However, luckily thanks to the government promoting our using cleaner means of alternative energy and saving the planet, there are now several types of tax breaks, incentives and even state grants that will help pay for the cost and installation for homeowners who are willing to use solar energy to help power their home.

For instance, one solar panel energy site is offering their 5kw (enough to power most of a home’s energy needs) solar energy solution system for a total cost of $20,000. After tax credits and state grants (vary depending on state), this 5kw system only costs you roughly $13,000.

Cost of a 5KW Solar Panel Energy System:

The cost of a 5KW solar panel energy system can vary depending on a number of factors such as the type of panels used, the location, installation costs, and the size of your home. On average, you can expect to pay between $10,000 and $15,000 for a 5KW solar panel energy system.

Tax Credits for switching to solar:

There are a number of tax credits available for homeowners who switch to solar, including the federal solar investment tax credit (ITC), which offers a credit of up to 26% of the cost of your solar panel system. Some states also offer their own solar tax credits, so it’s worth researching what is available in your area.

State Grant to help pay for installation:

Some states offer grant programs to help homeowners pay for solar panel installation costs. These grants can range in size and availability, so it’s important to research what is available in your state. Additionally, some states offer net metering programs that allow you to sell excess solar energy back to the grid, which can help offset the cost of your solar panel system over time.

There are actually several different size solar panel kits available on the market. There are small, single need usage systems for household appliances such as hot water heaters, swimming pool heating systems and systems that serve power to only portions of the home. These solar panel systems cost anywhere between $1,000 – $15,000, depending on what it is used for.

Solar Swimming Pool Heater $1,500 – $4,000

Solar Water Heater $1,000 – $4,000

1kw Solar System for Partial Home use $10,000 – $15,000

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Depending on the size of your home and the amount of energy it takes to operate it, there are still other various size solar systems to choose from. The prices below reflect average cost of solar panels, installation and the inverters needed to properly utilize the sun’s energy to power your home partially, halfway or even entirely. Keep in mind however, the sun doesn’t shine 24/7 so the more you conserve throughout the day, the less electricity you will need to consume at night.

2kw Solar Panel System (most needs) $4,000 and $8,000

5kw Solar Panel System (almost all needs) $10,000 – $15,000

Complete Remodel of Home to 100% Solar Panel Systems $20,000 and $50,000

It will typically take at least a decade or three for these systems to actually pay for themselves. However, some systems which are tied into the grid allow for the homeowner to sell their energy back to the grid. So not only will some homeowner’s power bill be reduced to $3-$10.00 a month, some might actually receive checks from their utility company rather than a bill at all!