How Much Do Solar Panels Cost In 2021?
Now you are probably already familiar with how solar energy can be helpful to reduce your electric bills, but a question remains, how much cost should be expected from a solar panel?
The easiest and the most consistent method in the US is to estimate the average cost is to calculate the price in dollars per watt.
Key metrics to estimate the cost of solar panel in 2021
The average cost for the installation of solar panels usually falls within the range of $11,144 to $14,696 after the solar tax credits and the price for solar panels per watt ranges from $2.51 to $3.31.
How the solar cost is impacted by the system?
Although it is useful to know the average cost per watt, it cannot help you if you do not know what a certain amount of dollar/watt means to you. The solar installation cost of residential solar panel systems and the cost of installation for your business is primarily dependent on how much electricity you would want to be generated. The bigger your system is, the pricier would be the installation as you will be required to purchase more pieces of equipment and hire more labor to install everything.
These prices are the reflection of the solar energy cost after and before the deduction of a federal solar tax credit. The tax reduces the cost of your solar system by nearly 26%. Some local governments, utilities, and states further offer rebates and other incentives of tax, which can be additionally reduced in your quotes from the installer of solar systems.
It is crucial to compare the prices quoted to the homeowners of your area in order to understand the price of a single solar panel and the price of a complete solar system as well. The total price also varies on the state you are currently residing in.
The solar panels cost by the state
As essential as it is to calculate the average cost of solar panels in the United States, it is also important to know how much it will cost you to install a solar system in every state. The prices can vary greatly depending on which state you are currently living in. For instance, the average cost of electricity in Florida is far lower than the solar cost in Massachusetts. Similarly, the cost in the Northeast is a lot higher in comparison to the average electricity bill in the US. Other than your location, there are many other factors influencing the average cost of electricity.’
Now, this does not imply that some American states are somehow better than the others in terms of solar prices, because the cost of solar panels is affordable and low all along. Nearly the cost of every state is within the margin of $0.50 cent of the $2.096 per watt in the national average for 2020. There is an additional takeaway of the top 10 solar states in America. Since the installed solar capacity is higher than the average cost per watt, it is clear that solar is not worthwhile in some regions of states with extremely low cost, although there is a healthy adoption trend across the country, which is without any correlation to the lowest cost for each watt.
Keep in mind that although a bigger solar system would cost higher, it would also allow you to save more. So, for instance, if 10 KW is sufficient enough to cover all of your electricity use, you would be paying more out of your pocket. Although simultaneously, you will be cutting a considerable cost from your expenses, therefore you would be saving more money. The $0-down, solar loans with low-interest are getting more and more common which is making it even easier to purchase solar panel systems and increase your savings.
The cost of a solar panel by the manufacturer brand
There is another way to break down the price of solar panels i.e. the brand of panels. The cost taken by the solar panel brand is the reflection of the quality of the panel to a certain degree. For instance, If you are using the SunPower panels you will see the highest average price, and it is believed that SunPower produces great panel products with high-efficiency. It is interesting that there are not as many outliers in terms of brand pricing and most of the known manufacturers generally suggest similar cost ranges. It is also necessary to remember that aside from just the panel manufacturer there so many other factors that influence the price of the final system. The factors could be anything from the location to the installer experience, the brand of the inverter, and the installed racking pieces of equipment.