Cost of Solar


Overview

The cost of a standard home solar electric system can be anywhere from $20,000 to $60,000 depending on these factors:

  • System size
    A larger system will be more expensive and system size depends on how much energy you need. System size is the biggest factor that determines how much solar costs.
  • Brand of equipment
    As with everything, some brands are more expensive than others.
  • Equipment quality
    Less efficient solar panels are less expensive but you also will need to buy more to produce the same amount of power.
  • Cost of labor
  • Federal and local solar rebates

Larger state rebates make for a less expensive system. Most solar installation companies will let you pay the after-rebate price and then they'll take the rebate when it comes. In other cases you may have to pay the full price of the system and wait for the rebate yourself

The costs of solar energy can be high. Overall, the cost of a solar system is usually between $8 and $10 per AC watt and this adds up to a high total price tag. But, when you buy a solar system, you're paying in advance for 25-30 years of power.

When you think of it that way, the cost of solar energy is not much compared to what this power will cost from the utility company over the next 25-30 years. This is especially true when you think about solar as an investment in your home.

Plus, with new and innovative options for home solar financing, solar power can be surprisingly affordable.

Cost Breakdown

When you buy a solar electric system, here's where your money goes:

  • Solar panels are 60% of the cost - they're mostly made up of pure silicon, which is expensive and takes a long time to make.
  • The inverter makes up about 10% of the cost
  • All the other parts, like wires and racking, is about 15% of the cost
  • Labor is also about 15% of the cost

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