There’s enough solar energy produced in the United States to power 18 million homes. This is mainly because of the reduction in solar system costs and the increase in incentives offered by states and the federal government.
Suppose you’re interested in adding solar panels to your home. Then there’s one question that you’ll likely ask before you start searching on Google for “solar installers near me.” How much does it cost to have solar panels installed?
This guide will help you understand the cost of solar system installation.
How Much Does It Cost to Have Solar Panels Installed?
The short answer is that solar panel installation costs can range from $15,000 to $25,000. The majority of the cost goes towards buying the actual solar panels. The next largest cost is the labor to have your system installed.
The cost of your solar system will depend on the size of the system that you need and where in the country you’re located. If your energy consumption is small, then you only need a small system.
The cost can also vary depending on the solar installation company you decide to work with. You will also have several solar panel brands to choose from. As a general guideline, the more expensive your solar panels are, the better their quality.
However, as with anything, don’t blindly purchase the cheapest or most expensive solar panels you can find.
There are additional costs that you’ll incur beyond the purchase of the panels. You’ll need to pay for the labor of the technicians to have the panels installed. You may also need to pay for permits to ensure your system is legally installed on the roof of your home.
The characteristics of your home can also increase the cost of installation. Homes with a south-facing slope that have a 30-degree angle will present an easy installation platform. If your home has multiple levels, skylights, dormers, or other challenges; you’ll incur additional costs for the accommodations.
State Tax Breaks
Many states offer incentives to their residents for installing solar panels. It could be a state tax credit or a reduction in property taxes. Other states have laws that enable residents to sell their excess energy production back to the utility company.
Federal Tax Breaks
Every American must file federal taxes each year, and if you install solar panels, you can claim a credit on them. You’ll file your claim for the year that you have the solar panels installed. The percentage of the credit will change based on the year you install your system.
Homeowners that install their system during 2020 through 2022 can claim up to 26% of their solar system’s cost. If you want until 2023, you can claim up to 22% of your solar system’s cost. If you wait until 2024 to install your system, you can claim up to 20% of your solar system’s cost.
You may find that your available credit is greater than your tax liability. That’s ok; the IRS lets you roll over your available credit to future years.
Schedule Your Solar Installation Today
Now that you know the answer to “how much does it cost to have solar panels installed,” you’re ready to start the shopping process for your new solar system.
The first step is to research the incentives available in your state. Then reach out to a few reputable companies and request a quote.
Check out our latest articles for more helpful advice on maintaining your home.