Low cost solar panels for your home: how expensive is solar in 2017?

residential solar panels for home use

The past decade has engendered the era of solar panels for home use. Homes and businesses across the country are transitioning away from a fossil-fueled electricity grid towards a clean energy economy, necessitated by emissions reduction targets in a time of global climate change. Amidst this period of energy reform, solar panels for home are taking off at a remarkable rate. It’s time to give residential solar the credit it deserves. Learn everything there is to know about the booming residential solar industry in our list of home solar FAQs.

How Expensive are Solar Panels for Your Home: Everything You Need to Know About Residential in 10 Questions

1. How much has the price of solar for residential dropped in recent years?

If you’re an optimist looking for feel-good statistics, the cost of solar power in the past decade is a great place to start. U.S. solar installation cost has dropped by 70 percent over the past 10 years. In the last year alone, the residential market saw a five percent decrease in cost. There’s no question that solar has evolved from a clean tech commodity to a sensible home upgrade that millions of Americans are considering in 2016. Getting solar panels for your home is one of the smartest decisions you can make in today’s age.

2. What is the difference between solar for business and solar for home use?

A commercial solar project might power a town or a company’s operations. As a result, they vary dramatically in terms of scale and cost. By comparison, residential solar systems tend to hold a consistent size (5 kilowatts on average). Thanks to their relatively small scale, rooftop solar panels for home are an attainable energy upgrade that can generate serious electric bill savings for homeowners at any income level. Commercial solar, on the other hand, necessitates a major investment and a collective group of investors.

3. What do residential solar panel systems typically cost?

The answer to this question depends on state and system size. However, there is data that can help you estimate what solar panels cost in 2017 in the U.S. The easiest way to calculate cost of solar across different system sizes is in dollars per watt ($/W), which indicates how many dollars solar will cost per watt of available electricity production. In 2017, homeowners are paying an average of $3.16/W. To put that figure in perspective, in 2008 the average cost of solar was just over $8/W. For an average 5kW system, a price of $3.16/W means you’ll pay approximately $15,800 before tax credits and rebates in 2017.

4. Will my solar panels be connected to the grid? What is net metering?

The vast majority of home solar panels will be connected to the grid. With grid-connected solar, net-metering serves as an efficient solution to the question “how will I power my solar home at night?” Net metering is a solar incentive where you receive bill credits when your solar system overproduces electricity. During times when your panels aren’t producing enough electricity, you can use those bill credits to cover the cost of your grid electricity use.

If you are off grid, you won’t have access to electricity from your utility. This means that, in order to build a completely off-grid project, you will need extensive energy storage capabilities, an extra-large solar panel system, and provisions for backup power to cover you when your panels don’t get enough sun.

5. How long does a residential solar system take to install?

Once you have met with the installers and done all necessary site visits and planning, the actual installation of your solar panel system will only take a few days of work. The exact time depends on a number of factors. For example, if you are setting up net metering, that process will tack on additional time until your panels are properly connected to the grid. Overall, while the decision process for solar panels can take some time, the installation timeframe is very quick and fairly simple.





Don



6. Can you get solar panels for your home if your roof doesn’t qualify?

Perhaps one of the most exciting aspects of the residential solar sector is the list of options for homeowners who want to go solar but do not have a suitable roof. Ground mount solar installations and community solar gardens are two common ways to access power from the sun without actually installing anything on your rooftop. Community solar involves connecting with members of a group or your neighborhood to share a solar system, while ground mounted arrays are an easy way to own and install your own system while bypassing any roofing hurdles.

7. What are the tax credits for residential solar systems? Who qualifies?

There are two simple ways to think about tax credits for solar panels. The major tax credit associated with solar panels for home is the federal investment tax credit (ITC), more commonly known as the Solar Tax Credit. The ITC gives you a tax credit equal to 30 percent of the total cost of your system, as long as you buy the system. The next option will be state solar tax credits, such as New York state’s tax credit that cuts an additional 25 percent off the price of the residential system. Depending on which state you live in, the opportunity for beneficial tax breaks and solar programs could be significant. Some states and municipalities also offer other more complex options that will be case specific – do some research into SRECs and other location-specific solar rebate programs.

8. Does solar make sense if I don’t plan on being in my home for 25 years?

A common concern for homeowners who are considering solar is, “What happens if I move after installing solar panels?” A typical solar panel system lasts for 25 to 30 years. If you don’t plan on owning their house for that long, you may wonder if solar still makes sense. The good news is that solar increases the value of your property and can actually expedite the process of selling the property when the time comes. The housing market is filled with buyers excited by the prospect of acquiring a solar home that comes with the benefit of zero utility bills. 

9. What percentage of your home can you power with solar panels?

Ideally, the answer to this question would be 100 percent. However, although a solar panel system can theoretically offset all of your energy use, it’s not realistic to expect that level of panel production every day of the week. Leading U.S. solar manufacturer SunPower recommends that homeowners factor in a 25 percent cushion when calculating their target for solar panel offset. The main reason for this: solar panels cannot operate at maximum efficiency all the time. There will be certain days when grid connection is necessary to fully cover your power usage. However, the beauty of net-metering is that you can benefit from surplus production days and never pay anything to your utility while still relying on the grid for backup storage.

10. When will your home solar system reach the “break-even point”?

Many homeowners are very interested in calculating their solar panel payback period, which is the amount of time it will take for electric bill savings to offset the cost of solar panel installation. The expected breakeven point ranges across the country, but on average, U.S. homeowners break even on their system cost after 7.5 years.

Figures like this illustrate why the residential sector might be the hottest in the solar industry. When solar panels are installed for home, the ROI is high and the payback period can be very short despite the upfront cost. If you’re looking for a personalized estimate for what solar would cost you, try our free Solar Calculator. Once you’re ready to start comparing quotes from local, pre-screened installers in your area, register your home on the EnergySage Solar Marketplace and let the bidding begin.





Don



2 thoughts on “Low cost solar panels for your home: how expensive is solar in 2017?

  1. Derek Mcdoogle

    You stated that U.S. solar installation cost has dropped by 70 percent over the past 10 years. My wife and I have a discussion the other night about our finances and what kinds of things we could change. Do solar panels work better in certain places and climates? Hiring a contractor to install solar panels on our roof might be a good option.

    Reply
  2. Scott

    I had never considered the fact that solar panels could increase the value of my house. I can see why this would be important to know if I plan on selling it within the next 5-10 years. My sister bought her first house a little over a year ago. I don’t think they plan on staying there longer than 5 years. If they ever are thinking about buying solar panels, I’ll have to point this out to them.

    Reply

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