How Much Do Solar Panels Cost in 2023? Uncover the Real Prices Here!
Are you wondering how much solar panels cost in 2023? We’ll look at the data compiled by our partner, EnergySage.
Discover the real cost of solar panels, and how to get the best deal without compromising quality.
Don’t Overspend on Solar Panels: Here’s What To Pay
Solar panels are a smart investment for homeowners looking to save money on their electricity bills.
However, with so many options on the market, it can be challenging to determine how much you should be paying for a solar panel system.
Overview of Solar Panel Costs
The price of solar is influenced by factors like the system size, brand of solar panel used, installation costs, roof type, available incentives, tax credits, and regional factors.
We will break down the cost by State and solar panel manufacturer.
National Average Cost of Solar Panels
On a National level, solar power systems cost an average of $2.86 per watt. For example, a 10kW system would cost approximately $28,600 before any incentives are applied.
According to EnergySage, the cost of a solar panel system for an average-sized house in the U.S. typically ranges from $11,144 to $14,696 after applying the solar tax credit.
Average Regional Prices
The area or region where your solar panel system is installed can also affect the cost. The amount of sunlight available in your neighborhood plays an important role.
Areas with higher levels of sunlight will have lower installation costs because fewer panels will be needed to generate the same amount of electricity. But systems tend to be bigger.
Additionally, certain regions may offer tax credits or other local incentives for installing solar panels, which can help offset some costs.
How Much Solar Panels Cost by State
Arizona: $2.33 per watt
California: $2.86 per watt
Florida: $2.58 per watt
Nevada: $2.60 per watt
Texas: $2.76 per watt
Type of Solar Panel Used
The type of solar panel you choose can have a significant impact on the cost of your system. Different types of solar panels offer different levels of efficiency and performance, which can affect the price.
Solar Panel Prices Revealed By Brand
The price of solar panels increases with higher quality, like any product or appliance. We compare features of the best brands here.
SunPower panels are typically the most expensive, but they also boast some of the highest efficiency rates in the industry.
They are recognized for superior quality and efficiency, which justifies their higher cost per watt.
SunPower solar panels cost between $3.12 and $3.74/W on the EnergySage Marketplace – or $18,720 to $22,440 for a 6 kW system, before the federal solar tax credit. Learn more about SunPower solar panels.
Q Cells Solar Panels Cost
Qcells offer great value with good efficiency ratings at much lower prices than SunPower.
Q CELLS solar panels cost between $2.32 and $3.16/W on the EnergySage Marketplace – or $13,920 to $18,960 for a 6 kW system. Learn more about Q CELLS solar panels.
REC Alpha Pure Solar Panels Cost
REC panels are another popular choice, offering good efficiency and affordability.
REC’s solar panels range in efficiency from 19.1% to 22.3%, and they have a materials and performance warranty lasting up to 25 years.
REC solar panels cost between $2.47 and $3.71/W on the EnergySage Marketplace – or $13,920 to $18,600 for a 6 kW system.
Learn more about REC Solar panels.
Panasonic Solar Panels Cost
Panasonic solar panels are affordable and efficient, making them an excellent choice for solar shoppers on the EnergySage Solar Marketplace. They’re also a better value than other high-efficiency panels like SunPower and have an impressive 25-year warranty.
If you’re shopping for solar panels at home, consider Panasonic as a top option.
Panasonic’s solar panels range in efficiency from 19.1% to 21.7%, and they have a materials warranty lasting for 25 years. Panasonic solar panels cost between $2.44 and $3.10/W on the EnergySage Marketplace – or $14,640 to $18,600 for a 6 kW system.
We recommend researching EnergySage and comparing prices using their online solar marketplace before deciding so that you can get the most for your money!
Installation Costs, Labor and Materials
Installing solar panels comes with certain costs. Labor costs vary depending on the size of the system being installed and the complexity of the project.
Generally, larger systems require more time and labor to install, so you’d expect to pay more for large projects. But it’s smaller systems that have a surcharge (under 4 kW).
Ground-mounted systems are always more expensive per watt.
More Factors That Affect How Much Solar Panels Cost
Your roof type matters too: high, steep, tile or flat can all impact cost.
For example, if your roof has multiple planes, dormers, or skylights, the installation process may require extra equipment and effort, leading to additional costs. The solar design matters!
Other factors, such as electrical panel upgrades, ground mounts, delicate tile, flat roofs, and steep roofs, can increase costs.
The solar installation company you choose also affects how much you’ll pay for your solar system.
Some installers charge extra for tile roofs, 2-story roofs, and multiple roof planes, while others do not.
Solar Tax Credit and State Solar Incentives
The Federal tax credit and other financial incentives are great ways to save money on the cost of your solar panel system.
The IRS solar tax credit is a valuable incentive for homeowners, but not everyone can use it. You will not receive the full benefit of the 30% solar tax credit if you pay minimal federal taxes.
Many states offer solar-specific rebates to help offset installation costs. Some local utilities also have special programs for their customers that can help reduce costs even further.
No matter where you live in America, the 30% Investment Tax Credit is the best incentive for going solar.
A $30,000 system will be eligible for a $9,000 solar tax credit, reducing the net cost to $21,000.
Note that your tax situation will dictate if you can take the 30% solar tax credit or not. Please read our article 9 Key Points About the Solar Tax Credit to learn more.
To find out what incentives are available in your area, ask an EnergySage Advisor, who will help you to identify and take advantage of all the available incentives and maximize your return on investment.
Do Solar Panels Cost The Same Online?
EnergySage simplifies finding solar installers in your area with their online solar marketplace. They offer the lowest prices, thoroughly evaluate the installers, and their solar advisors provide guidance to you.
Upfront Costs For Permits & Utilities
Local permitting requirements like engineering affect solar panel installation costs. There may be net metering fees and other administrative expenses.
Utility Companies and Electricity Rates
With the rising electricity costs, it’s good to know that solar panels are becoming more affordable than ever.
Utility company energy rates are essential to consider when deciding whether or not to install solar panels. Energy rates can vary greatly depending on where you live, so research before deciding.
In some areas, utility companies offer incentives that lower the cost of installation and provide subsidies for solar projects.
If you live in an area with high energy costs, going solar can be a great way to fix your cost and save money. On the other hand, if you live in an area with lower energy rates, it might not make economic sense to go solar.
If you live in California, see the changes coming with NEM 3.0!
Solar Financing Cost
How you pay for your system can also affect the overall cost
If you finance the system, there may be dealer fees and interest.
You have three primary options: paying in cash, getting a solar loan, or leasing.
A cash purchase is an excellent option to maximize your savings from solar, especially if you can take advantage of the 30% solar tax credit.
Lender Fees Can Affect Solar Panels Cost
A no-money-down solar loan is also a great option if you don’t have the funds to pay for a solar panel system in cash. Lenders charge fees for solar loans, however.
The cash price will be lower than the financed price unless you opt for higher interest rates.
A solar lease or power purchase agreement may be the right choice if you are not eligible for the 30% federal solar tax credit. You will receive up to 30% off the system upfront.
Payback Period & Return On Investment
The payback period for a solar panel system is the time it takes for the savings on monthly electricity to match the cost of purchasing and installing the system. Factors such as utility rates, roof orientation, shading, and weather can influence how quickly you’ll recoup your investment.
Depending on the size and type of system you choose, payback periods typically range from 6-10 years, so you can enjoy long-term savings for years to come.
Save Thousands: How to Find the Best Solar Panel Prices
We recommend doing research on EnergySage and comparing prices using their online solar marketplace before deciding so that you can get the most for your money!
Use EnergySage For The Best Solar Panel Prices
With the help of EnergySage, you can start generating free, clean energy and save around 20% on your solar system.
Prices remain competitive for solar, and we have seen a drop since our last report on how much solar panels cost.