My name is Ben Meadows and I am the founder of Meadows Solar Agency.
Back to Blog
The average homeowner would save at least $25,000 over 25 years by investing in a solar panel system. As of early 2017, the current low-end cost of residential solar power was approximately $3.00 per watt installed. The average sized solar panel system is about 5,000 watts, so this brings the total cost to about $15,000 (which is an average amount. Systems can cost more or less depending upon a homeowner’s energy usage and state of residence).
Before the Solar Investment Tax Credit, a solar panel system costs about $3.00 per watt installed, with an average cost of $15,000 for the entire system, coming to about 8 cents per kilowatt hour. At this price, you’ll pay $159 per month for a $15,000, 10-year loan at 5% interest.
However, once you take the 30% Solar Investment Tax Credit into account, the price decreases dramatically…After the Solar Investment Tax Credit is factored in, the cost for installation of the system drops to about $2.00 per watt, with an average total cost of about $10,500 (6 cents per kWh). This means, on average, you’ll be paying around $111 per month for a $10,500, 10-year loan at 5% interest.
Pricing for systems can vary due to the specific brand of panels used, inverter brand and regional pricing differences. Most installers can achieve under $4.00/watt pricing, while some are installing for less than $3.00/watt.
Many states also have incentives that will bring this cost down a few thousand dollars. Plenty of no-money-down financing options are available. An average non-financed system payback time is about 5-8 years.
Monthly payments on a 10-year loan are about the same as what the average homeowner pays for a typical utility bill, sometimes less. Of course, after the loan is paid off, you’ll get to benefit from free solar power.
Another misconception is that the price for residential solar power is still more than what utilities are charging their customers across America. This is no longer true. The effective rate for solar power spread across the life of a system is $0.08/kWh. The average cost for conventional energy is $0.12/kWh and rising.
What are you waiting for? Find out right now how much you could save by switching to solar.