The solar industry in the United States is booming, with more and more homeowners making the decision to switch to clean and renewable solar energy. In 2022, a new solar project was installed every 44 seconds, highlighting the scale at which the solar industry is growing. Currently, there is enough solar energy installed in the U.S. to power 25 million households.
One of the main reasons for the interest in installing solar panels has been the decline in the cost. In the past 10 years, the cost of installing a solar panel system has fallen by 53%. If you are considering solar panels for your property, then it is important to understand the average cost of installation.
In this blog post, we will highlight the average cost of solar panels in the U.S. and the main factors that determine cost. Let’s get started!
What Is the Average Cost of a Solar Panel?
The average cost of installing a 4 kW solar system in the U.S. today is $9,100. This is after applying the 30% tax credit which is available on residential solar installations, as part of a push by the federal government to move away from a reliance on fossil fuels.
Here is a breakdown of the average costs of installing different sizes of solar systems:
- 6 kW system: $12,390
- 8 kW system: $15,960
- 10 kW system: $19,180
- 12 kW system: $23,100
- 14 kW system: $26,936
- 16 kW system: $29,860
It should be noted that the average cost per watt is lower the larger the system size. For example, the average cost per watt with a 4 kW system is $3.25. For a 16 kW system, the average cost per watt falls to just $2.50.
Factors That Determine Solar Panel System Cost
As alluded to above, the main factor that determines the cost of a solar system is the size of the system. The higher your home’s energy usage, the larger the solar system you will require to cover your electricity bill. A large home with many occupants will likely require a larger solar system with more panels than a small home with few occupants.
Your home’s specific location is another factor. The amount of sunlight that the area receives will impact how many panels are required to cover your electricity needs.
Certain states also offer tax incentives for homeowners who install solar panels, which helps to reduce the upfront cost of installation. Check out this tool to learn more about the cost of installing solar panels on your property.
How Much Should It Cost to Install Solar Panels?
The bottom line is that solar panels cost around $9,100 for an average-sized 4 kW system. Given that solar panels last for between 25 and 40-plus years, they are a great long-term solution to rising energy prices. They are also a great way to protect the planet and reduce our dependence on fossil fuels.
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