The cost of installing solar panels has dropped every year since 2009, making it a stronger investment over the years. Houses in sunny areas can handle almost all of their power generation with solar panels. Even those in shadier regions can see a decent cost break.
If you’re having a new home built or are considering a major investment in your home, solar panels might seem like a perfect option. Many projects run into one problem with solar panels: pricing.
Will solar panels fit your budget? What’s the average cost of a solar panel in 2022? Read on for the essentials for any solar project.
Solar Panels: Pricing Per Watt
Solar panel projects look at the price per watt of solar energy. Typical projects for residences seek to install five kilowatts, or 5,000 watts, of solar energy. Depending on the layout and solar panel type, costs for this amount range from $11,000 to $25,000.
Understanding why costs vary so much requires understanding each step of the process. Each element of a solar system comes with its own push and pull on the cost of solar panels.
Types of Panels
Different types of panels adjust the solar panels’ installation cost. While form factors can vary somewhat, panels fall into 3 categories.
Monocrystalline Panels
Monocrystalline panels have a base cost of $1 to $1.50 per watt. While they sport excellent durability and efficiency, the cost hurdle can get quite high.
Polycrystalline Panels
Polycrystalline panels offer a compromise between efficiency, durability, and cost. They usually cost about $0.95 per watt.
Thin-Film Panels
Thin-film panels lack efficiency, but they give a cheap, lightweight, portable option for solar panel installation. Thin-film panels cost between $0.70 and $1.00 per watt.
Installation Costs
The cost of the physical panels makes up a small portion of the cost. Installation costs from companies like BlueRaven Solar make up a major chunk.
The installation process covers more than labor. The cost of home solar panels comes from permit processes, inspections, and the balance of the system as well. Even DIY solar panel projects will incur many of the costs associated with installation.
Sometimes, costs go up due to factors you wouldn’t expect. Roof pitch is one of the most common culprits for increases in the final cost. An ideal roof for a solar project in the US faces south, and roofs facing other directions will incur increased costs.
Cost Breaks
That’s not to say that once you’ve selected all the components, you can’t ease costs back down. In the US, you can receive a significant tax credit for installing solar panels.
The current Investment Tax Credit for solar panel installation reduces the cost by about 26%. Other local and state programs can further reduce your final costs.
Soak Up the Sun
The push and pull of house conditions and project factors can have a large impact on solar panels pricing. Don’t be afraid to spend a little though. With the cost down almost 90% from a decade ago, now’s a great time to make the investment.
Need to make some repairs to your roof before investing in solar? Check out our home improvement section!