How Much is Solar Panel Installation?
The Cost of Installing a Solar System in 2021
Getting a solar system is one way to cut costs on your electricity bill. A solar panel allows you to generate ‘free’ electricity from the sun. For you to enjoy a solar system, you need to pay the installation cost. The location, efficiency, and capacity can affect the cost of installation. Below is a guide that will help you understand the cost of installing a solar system.
How much is a solar system installation?
Installing an average solar system can cost you around $12000 after the federal tax. If you want a simple solar system, you can get it for as low as $5000. While on the higher end, it will cost you as much as $45000 in the United States. These prices tend to be more affordable compared to the past few years.
When budgeting, you need to budget for any extra cost related to installation. The solar panel will take most of the budget—another additional cost associated with a solar installation, such as operations and labor cost.
Factors that will determine the cost of solar system installation
During solar system installation. Several factors can either increase or decrease the amount of money you spend. Some factors include:
01. Cost of Labor
The amount of cash you pay on labor will affect the amount of money you will spend on solar system installation. The labor cost depends on the location, the number of solar panels, and the individual installer. Unless you are installing the solar panel on your own, you may not have much control over labor costs.
Different states have different prices on solar panels. Some cities tend to charge more on solar panels than others. Depending on federal tax, the price of a solar panel can either increase or decrease.
03. Solar Panel Type and Model
There are three types of solar panels.
Monocrystalline solar: This solar panel is smaller to lose efficiency during hot days.
Polycrystalline solar– Works best in a hot climate.
The above solar panels have a slight difference in prices. Each manufacture makes panels with other materials, variation configurations, and technology. The brand you choose will affect the cost of your solar system. Chooses a quality solar system that will serve you for a more extended period.
04. Power Inverters
After installing the solar system, you need a power inverter to convert the panels’ direct current electricity into alternating current to use at home. Like solar panels, there are different types of power inverters and manufacturers.
The expert installing the solar system will suggest the best power inverters depending on your system. The type of inverter you choose will affect the cost of solar system installation. Make sure to get the right quality power inverter.
05. Government Intervention
The government can intervene through federal tax credit and local incentives. The government is offering a reduction in the federal income tax until 2022.
You will get a deduction against your federal income tax of 26% of the total cost of solar energy. The federal tax credit is likely to end in 2024.
On top of federal tax credits, some states offer local incentives for home solar system installation. A government intervention lowers the taxes. You are reducing the amount of cash you spend on solar system purchases and installation.
How much will a solar system save?
Depending on your location’s climate, you can save up to 75% with a solar system. A solar system depends on sunlight to produce direct current electricity. If you live in warm areas, you can save as much as $91000, while in cold regions, you can save about $40000 in 20 years.
The cost of installation can be expensive. But an average family can spend $1500 on utility bills. With a solar system, you will have power for around 15 years without breakdowns. Thus, comparing a solar system to average power, you tend to save more after some time.
Take advantage of the federal tax credit to decrease the amount of cash you spend on solar system installation. Some companies offer you a free calculator tool. Making it easy to calculate the cost and how much you save after installation.
Installing a solar system can be expensive. After installation, you will save a lot of cash than the usual electricity. A solar system uses the sun, a free energy source, to have a high return and minimal maintenances. It is more comfortable installing a solar panel before 2022 due to the current federal tax credit.