How Much Do Solar Panels Cost in 2022?
If you are a homeowner who has heard about solar energy, you may know that people are saving a ton of money on their electricity bills by going solar. Are you wondering how much a new solar array would cost? If so, this page is for you. The cost of solar panels depends upon a number of factors, which we will go over in some detail. After reading this, you should be able to take the first steps for determining the cost of your solar array on your own. After that, you can reach out to our office for more information.
The factors that drive the cost of solar panels for any residential customer are:
- Energy Consumption
- Electricity Prices
- Sunlight Exposure
- Price of Equipment
- Incentives
Energy Consumption
How much electricity does your household use each month? If you are like most homeowners, electricity use goes down in the winter (when homes rely on fossil fuels to stay warm), and up in the summer (when the air conditioner runs often). With net metering, a home with solar panels is only interested in the total amount used in each year, because you will pay an annual electric bill. The more electricity your household consumes annually, the larger the array you will need to offset it.
When some families start to consider the math involved with electricity production, they get excited about being energy independent. They realize that you can increase the amount of electricity you use when the cost is cheaper. Solar panels give you a way to increase your consumption, because if you plan correctly, you can generate all your own power.
Electricity Prices
Perhaps the most important variable in determining the cost of your solar panels is the cost of electricity. While this cost may not affect the cost of your panels, per se, it absolutely will determine how much money they will save you. Electricity suppliers lose money when they lose customers. And because they often have no direct competition, they can raise their prices as much as they want. This causes them to raise the prices when people go solar, which only encourages more homeowners to do the same.
If you examine your bills for the last several years, you will likely find that the cost of electricity is increasing faster than inflation. That’s because utilities have to charge more and more money to make a profit. The more people choose solar, the better an option it becomes for those left behind.
Sunlight Exposure
Each home has its own profile for the amount of sun it receives, depending on how the home is positioned, the angle of the roof, and whether or not any obstructions are present that might block the sunlight. Your solar installer will want to examine your roof to determine the size of the surfaces that receive the most sunlight. Because we live in the Northern Hemisphere, the sides of your roof that face south are most important. Ideally you will have enough space on these surfaces to accommodate all the panels your home will require.
When you reach out to 100K Solar for an estimate, our professionals will conduct a free, in-home consultation, which begins with a free roof inspection. This inspection will generate a unique profile of your home with respect to sunlight exposure. Once you have this information, you can make the necessary decisions to prepare your home for installation, when you’re ready to move forward.
The Cost of Equipment (and Installation)
So wait… How much will my panels cost?
The answer depends on how many panels you need, and which kind you buy. The whole point of purchasing solar panels is to reduce the amount of electricity you purchase from your supplier to zero, or close to zero. If you size your array according to your current consumption, at first you will probably have a few months in which you use more than you consume, and will have to buy some power from your supplier to make up the difference. Over the entire year however, you should have enough months in which you produce more than you consume that your production will eclipse those months of heavy use
But over the years, peoples’ consumption tends to increase. This is especially true in a growing family. If you purchase enough panels, you can have a net consumption which is slightly negative, meaning that you will be selling a small surplus back to the supplier. You will have a tiny monthly service charge, but no monthly bill for usage.
Ultimately, you will choose panels based on their quality. This is measured by their durability, longevity, and the amount of energy they can produce per hour. If you have limited roof space, you may find that a premium panel is critical for your home. At 100K Solar, we use the very best panels, and can provide you with several options that will suit your needs, and your budget.
How much does installation cost?
The cost of installation will vary depending on your home. Some homeowners will want to have a new roof installed before adding panels. Some will want certain trees or other obstructions removed or trimmed. And some roofs and homes present other unique challenges to installers. All of this will be factored into your estimate.
A good solar installation company will handle all of your permitting for you. This will save you a lot of time and effort; most homeowners don’t know the first thing about how to apply for solar permits. Perhaps ironically, permitting is the longest step in the process. Most solar arrays can be installed in a single day.
Incentives
If you have spent any significant time exploring solar as an option for your home, you may know that there are some outstanding programs for helping homeowners save money on a new solar array. The specific incentives available to you will depend on where you live. But no matter where that is, there are likely several programs that you can take advantage of that make going solar look like the obvious choice.
Consider the Federal Solar Tax Credit. The federal government offers a generous tax credit that enables you to lower your tax liability by as much as 26% of the cost of your system if you purchase your system in 2022, and 22% if you purchase it in 2023. (Unless the federal government votes to extend this credit, it will expire after 2023.) Of course, this credit will reduce your income tax payable for the year in which you purchase your system. But it can also be applied to the previous year, or as many as 20 years going forward.
The federal tax credit is available no matter where you live in America. But many states also offer incentives. For example, in New Jersey, solar panels are not subject to sales tax. In addition, New Jersey residents can earn SRECs (Solar Renewable Energy Credits) for each kilowatt hour (kWh) their systems produce. These SRECs can then be sold back to their utility company, as evidence that they are helping to produce green energy.
When you request a free in-home consultation with 100K Solar, we will go over all of the incentives available to you. We will show you how to take advantage of these offers, and help you as best we can. We do this for two reasons: First, we know that money is a critical reason why people decide to go solar, and we want to make sure that the numbers work in your favor. Second, we want you to have the best possible experience when you seek our services.
Choose 100K Solar for Your Free In-Home Solar Consultation
Hopefully, reading this page has opened your eyes a little to how the cost of electricity is affecting your life. You don’t have to be a prisoner to your electricity provider. You can save money. When you reach out to us, we can show you the math. Panels are getting less expensive to manufacture, while electricity is becoming more and more expensive. Going solar just makes good sense.
https://www.sunrun.com/solar-by-state/nj/new-jersey-solar-tax-incentives
https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics