How Much Does the Solar Panel Cost in 2024

As the shift toward renewable energy accelerates, understanding the solar panel cost is crucial for homeowners considering this sustainable investment. The cost of solar panels has dropped significantly over the years, making them more accessible than ever. This article breaks down everything you need to know about solar panel costs in 2024, including installation expenses, factors affecting pricing, and ways to maximize your savings.

 

How Much Do Solar Panels Cost in 2024?

The cost of solar panels in 2024 can vary based on several factors, from your location to the type of solar panels you choose.

The average solar panel cost for a typical U.S. home ranges between $15,000 and $22,500 before incentives. This range applies to a standard 6 to 8 kW system, which is sufficient for most households. However, prices can fluctuate depending on the size of the system and the state you live in. For instance, the cost in states like Massachusetts may be higher, while in states like New Mexico, costs tend to be lower.

After applying the 30% federal solar tax credit, homeowners can reduce the net cost to between $10,500 and $15,750. It's important to note that the solar panels for home cost may also vary based on the specific installation needs of your property, including roof type, system size, and local labor rates.

Below are the typical expenses for residential solar panel installation by state, based on data from EnergySage.

State	Average Cost Before Incentives	Average Cost After Incentives	Median cost per watt
Massachusetts	$33,186	$23,230	$3.37
New Mexico	$28,210	$19,747	$3.12
California	$19,973	$13,981	$2.39
Texas	$27,971	$19,580	$2.15
New York	$33,912	$23,738	$3.04
Alabama	$39,250	$27,475	$3.37
Hawaii	$29,362	$20,553	$3.50
Nevada	$28,266	$19,786	$2.24

What Factors Affect Solar Panel Costs?

Several factors influence how much you'll pay for your solar panels. Understanding these can help you make more informed decisions.

1. Type of Solar Panels

The type of solar panel you choose is one of the most significant cost determinants.

Panel Type	Efficiency	Average Cost per Watt Before Installation
Monocrystalline	High (17%-20%)	$0.75 - $1.50
Polycrystalline	Moderate (14%-17%)	$0.40-$0.80
Thin film	Low (7%-12%)	$0.30-$0.60

*The average cost estimates are derived from wholesale pricing provided by Solar Electric Supply, Inc.

2. System Size

The size of your solar energy system, measured in kilowatts (kW), directly influences the cost. Larger systems require more panels, which increases the upfront cost. However, a larger system can produce more energy, leading to greater long-term savings. The complexity of your roof—its shape, angle, and how much sunlight it receives—can also affect the size and cost of the system. For example, a roof with less direct sunlight might require more panels to meet your energy needs, increasing the overall cost.

System Size	Estimated Annual Energy Production	Average System Cost(before Incentives)
4 kilowatts (kW)	5,600 kilowatt-hours (kWh)	$11,400
6 kW	8,400 kWh	$17,100
8 kW	11,200 kWh	$22,800
10 kW	14,000 kWh	$28,500
12 kW	16,800 kWh	$34,200

 

For those seeking reliable portable energy solutions, Solar Panels from Anker provide top-tier performance. With elegantly crafted designs and innovative Angle Adjustment technology, these panels ensure you're protected against power shortages, offering a smooth powering experience no matter the weather.

3. Additional Hardware

Beyond the panels themselves, additional hardware like inverters, mounts, and solar batteries can add significantly to the cost. For instance, installing a high-quality solar battery like the Tesla Powerwall can cost over $10,000 before applying any incentives. This hardware is crucial for storing excess energy, which can be particularly beneficial in areas with unreliable grid power or for those aiming for greater energy independence.

4. Purchasing Method

How you choose to purchase your solar panels—whether through cash, a loan, or a lease—can significantly impact the total cost. Paying in cash is usually the least expensive option because it avoids interest payments. However, if you finance the purchase with a solar loan, you could end up paying up to 47% more over the life of the loan, depending on your loan terms. Leasing may lower the initial cost but usually results in higher total payments over time, without the benefit of ownership.

5. The Installer

The installation process can vary in cost depending on the installer you choose. Each installer has its pricing structure, which can significantly influence the overall cost of your solar system. More expensive installers don’t always equate to better quality, so it’s essential to get quotes from multiple companies and research their reputations before deciding. Factors like the installer’s experience, warranty offerings, and customer service can also affect the overall value you receive.

How Much Does Solar Panel Installation Cost?

The installation of solar panels is a significant part of the total cost. Understanding how much does it cost to get solar panels installed is crucial for budgeting your investment. Here’s a closer look at what you can expect.

The solar panel installation cost includes labor, permits, inspection, and equipment like inverters and mounting hardware. A standard 6 to 8 kW system might cost between $12,000 and $25,000, depending on your location and the specific challenges of the installation. The cost can increase if your roof needs repairs or if your electrical system requires an upgrade before installation.

For a more precise estimate, obtaining multiple quotes from different solar installers is recommended. This approach helps you understand the potential costs better and find the best deal for your situation.

Breakdown of Costs:

Solar Installation Cost Factor	Estimated Cost
PV Materials: Panels, Inverters and Hardware	$8,066.07
Electrical Labor	$2,252.07
Administration, Grid Connection Request and design	$2,081.07
Installation and Labor	$2,081.07
Taxes, Fees, and Permits	$1,397.07
Electrical Materials	$1,222.65

For those seeking more flexible and lower-cost solar solutions, the Anker SOLIX PS100 Portable Solar Panel, with its high conversion efficiency of up to 23% and adjustable angles for maximum sunlight absorption, offers an affordable option that can be used in various settings, from outdoor adventures to supplemental home energy.

How to Save Money on Solar Panels

While the upfront costs of solar panels can be substantial, several strategies can help reduce these expenses and maximize your long-term savings.

1. Federal Solar Tax Credit

The 30% federal tax credit remains one of the most significant incentives, reducing the overall solar panel cost by thousands of dollars.

2. State and Local Incentives

Many states offer additional incentives, such as tax breaks, rebates, and performance-based incentives like SRECs. These can further reduce the solar panels for home costs.

3. Shop Around for Quotes

Obtaining quotes from multiple solar installers can help you find the best price. Prices can vary widely depending on the installer and the equipment they use.

4. Install Fewer Panels

If budget concerns you, you can start with a smaller system and expand it later. This approach might increase the payback period but makes solar more accessible upfront.

How Long Does It Take for Solar Panels to Pay for Themselves?

A key consideration for anyone considering solar panels is the payback period, or how long it takes for the investment to start saving you money.

The payback period for solar panels typically ranges from 6 to 10 years, depending on several factors, including the initial cost of the system, available incentives, and your local electricity rates.

Once the system has paid for itself, the remaining years of operation—often 15 to 20 years—represent pure savings. Homeowners can save $25,000 or more over the lifespan of their solar panel system, making solar a financially sound investment.

How Much Can You Save With Solar?

Beyond just paying for themselves, solar panels can lead to significant long-term savings.

Over the lifespan of a solar panel system, typically 25 to 30 years, homeowners can save anywhere from $10,000 to $30,000 on electricity bills. These savings are even more substantial in states with high electricity rates and strong sunlight exposure, such as California and Arizona.

Moreover, by choosing efficient solar panels, you can maximize your system’s energy production and potentially reduce the number of panels you need, further increasing your savings.

Conclusion

Investing in solar panels is a significant financial decision, but it offers considerable long-term savings and environmental benefits. By understanding the solar panel cost, installation factors, and available incentives, you can make an informed decision that best suits your needs. Solar energy not only reduces your carbon footprint but also provides financial stability by protecting against rising electricity costs.

FAQs

How long do solar panels last?

Solar panels typically last between 25 to 35 years, with some degradation in efficiency over time. However, they continue to produce energy well beyond their warranty periods.

Is it worth installing solar panels in 2024?

Yes, especially with current incentives and the rising costs of electricity. Solar panels can significantly reduce your electricity bills and increase your property’s value.

Do solar panels increase home value?

Yes, homes with solar panels often sell for more than those without, as they offer future energy savings for buyers.

How many solar panels are needed to power a house?

The number of panels depends on your energy consumption, but the average home typically requires between 13 to 19 400-watt solar panels.