Cost of Solar Panels in Texas
The price of solar energy has fallen drastically by over 80% since 2010. Which has been a critical factor in the increasing adoption of solar energy in Texas, where there is enough solar panels installed to power over 1.8 Million homes!
But how much does it cost it install solar panels in Texas? And How long does it take for them to pay off themselves? Discover the answer to these questions and more in this short guide to the cost of solar panels in Texas.
Or if your prefer not to wait, you can receive a customized solar quote that will breakdown you solar options, for free! Start here.
Get started with your free solar savings quote!
How Much Do Solar Panels Cost In Texas?
The average cost of solar panels in Texas in 2023 is between 12,899, which is around 2.77 per watt. But truly can cost anywhere between 10,000. 15,000, depending on your solar needs.
For example, a 6KW solar energy system costs an estimated range of 16,620 before incentives and 12,899 after applying Texas solar incentives. This shows that the net price spent on solar systems can drastically fall by thousands of dollars after applying incentives and federal investment tax credits.
Below is a table showing the cost of solar panels based on the size of the solar panel system and system cost after the Federal Tax Credit.
| 4 kW | 11,080 | |
| 5 kW | 13,140 | |
| 6 kW | 16,620 | |
| 8 kW | 22,160 |
Factors That Determine the Cost of Solar Panels in Texas
On average, you can expect your solar panels to pay for themselves in about 10-13 years. But in Texas, some solar energy systems pay themselves off, with the energy savings, in less than 10 years. Solar Panels in Texas work extremely well because of the ideal weather conditions. On average, Texas has over 300 sunny days per year. That’s a whole lot of sun which could be a whole lot of solar power!
But how quickly your return your investment into solar depends on many factors. How much you pay for your solar power system is a big one. How you take advantage of the excess energy your solar panels generate, is also a factor that can increase your rate of return. Here are the top 3 factors that go into the cost of installing solar panels in Texas.
P.S. If you live in Austin or Houston, check out these articles for the local incentives and solar rebates that can reduce the cost of solar panels in these cities.
1: Solar Panel Company: Your Choice of Brand Quality
As a resident of the great state of Texas, you have Solar Energy Rights which means you have a choice of the solar installation company you want to work with and the types of solar panels you want to buy.
Which solar panel company you work with is one factor that determines how much you pay for solar. As a homeowner, you have a wide range of companies to choose from. Ensure to do your due diligence in selecting a solar company with transparent pricing, integrity, and honesty. Contact us for consultation if you need expert advice on choosing a solar panel brand. We help you eliminate guesswork from solar panel installation and provide you the best options for your solar needs.
Learn what solar panels are best for your home or business!
DIY solar panels: pros, cons and installation guide
To save money, it’s no surprise that many homeowners are considering “do it yourself”, or DIY, solar. You can install solar panels yourself, but there are some advantages and disadvantages to doing it alone. In this article, we’ll break down the top pros and cons that you need to know about do-it-yourself solar panel systems before making a decision.
Can you install solar panels yourself?
A solar panel system is complicated, which is why so many companies across the U.S. specialize in providing professional solar installation services. However, that doesn’t mean you can’t build your own solar panel system – you can install your own panels, a DIY solar panel setup can be a viable option for some solar shoppers wanting to tap into renewable energy.
According to data from the EnergySage Marketplace, the average cost of going solar for homeowners (after accounting for the federal tax credit) is about 20,650 in 2023. Of that amount, design and installation labor costs contribute about 10% of the total bill; this 10% is what a DIY solar installation will save you since you’ll still have to buy the equipment and components yourself. Regardless, it’s still tempting to look into building your own solar panel installation to save money and be in full control of your home renewable energy project.
Your solar energy system should continue to generate electricity for 25 to 35 years, so you must consider both the upfront costs and the relative financial benefits for all of your solar options. If you buy a home solar kit like the ones for sale at Costco or Home Depot, it may be less expensive per watt, but you aren’t getting the same quality equipment that solar installers can offer you. For the most part, solar installers buy from equipment distributors that don’t sell to the general public – and they’re often getting lower because they’re able to buy in bulk and have access to the best solar panel brands. Going for the more expensive option now may end up saving you money in the long run because you’ll likely have a system built to last a few decades, offsetting your monthly electric bills.
Pros and cons of DIY solar panels and solar panel kits
DIY panels can be a great option for going off the grid and some small home applications. For powering your entire home, however, it may be in your best interest to go with a professional installer.
DIY solar pros and cons
| Provides more energy independence for homeowners by not being tied to the electricity grid. | Require much more maintenance that would otherwise be covered by an installer warranty. |
| Effective in powering smaller items like RVs, boats and other appliances | For an entire home, installation may be difficult for an individual without the knowledge and experience of a professional installer. |
| Allows homeowners to save roughly 10% on the overall cost of installation that would otherwise go towards labor. | DIY installation may be illegal where you live according to local zoning laws. |
Most home DIY all-in-one solar panel solar kits (including items like solar batteries, and inverters) are designed for off-grid use, which means you can’t use them and remain connected to your utility. If you’re an average homeowner, going off-grid is probably not in your best interest – being able to access utility-generated electricity is important if your solar array doesn’t produce enough electricity to meet your needs at all times of the day throughout the year.
However, home solar kits can be a good solution if you’re not trying to power your entire home. RVs, boats, and the increasingly popular tiny houses are all opportunities to explore do-it-yourself solar because they are already off-grid and mobile. Storage kits are also a good option for backup to help in the case of a blackout and can contain battery banks and battery systems.
If you want to install a DIY solar project, compare several options beforehand. Grape Solar is a major manufacturer (among others) and offers a few different DIY products and components for both grid-tied and off-grid systems, which you can find more information on below.
DIY solar options
| Grape Solar 400 watt PV solar panel kit | 400 | 588 | 1.47 | Home Depot |
| Grape Solar 600 watt PV solar panel kit | 600 | 857 | 1.42 | Home Depot |
| Renogy solar 12-volt/24-volt premium kit | 800 | 1,350 | 1.69 | Renogy |
| ECO-WORTHY off-grid solar panel kit | 800 | 1,090 | 1.36 | Amazon |
When you decide on DIY solar panels, remember that you get what you pay for. A home solar kit may be less expensive, but solar installers offer tremendous value for a relatively little additional cost (remember that 10% figure?). When it comes to installing an expensive electrical system on your property, finding someone who knows what they’re doing can save you both time and money in the long run.
Some of the best solar installers have been in the business for decades – an experience that no amount of online research or DIY guides can replicate. Every state requires that installers are licensed and qualified to install solar, and independent certifications like the North American Board of Certified Energy Practitioners (NABCEP) Solar PV Installation Professional Certification ensure that the company you choose to work with has an intimate understanding of the process. Because of this, they can provide experienced insight and help you assess what equipment is the best fit for your property and whether a battery system is right for you.
Your solar installer will also help you complete and file the permits and applications that you need to submit to get your solar power system up and running. This is particularly important because your utility won’t let you connect your system to the grid without a sign-off from a certified electrician.
Because of your solar installer’s experience, they’ll also have a strong understanding of the financial incentives for solar available in your area, and might even be able to help you save more money by finding any rebates and tax incentives that you may have missed. Lastly, it is important to note that many equipment manufacturers will only honor their warranties if a qualified installer installed their equipment. Many installers will also offer an additional warranty to back up their work, too.
The 6-step guide to DIY solar panels: how to install solar panels
The DIY solar panel installation process can be simplified into six major steps:
Purchase your solar equipment and components (solar panels, batteries, inverters, racking, etc.)
Equipment and components including panels can be purchased with help from the EnergySage Buyer’s Guide. You can compare panel, battery, and inverter models based on specs like efficiency, warranties, and more.
Install the racking or mounts for the panels on a roof or the ground
Once you have the necessary equipment, designs, and permits in order, it is time to install your equipment. For roof mount systems, this begins with installing your racking and mounting equipment. To start, mark where your system will be installed, drill where lag bolts will be put in place, caulk the holes, put in lag bolts, and lock rails onto them. For ground mount systems, the steps are similar, only the panels will be installed at the ground level on some type of racking system.
Install your equipment
The first items to install are the solar inverters, which convert the electricity generated by your solar panels into usable electricity. After these are installed using provided bolts, you will need to connect a grounding wire. This is a piece of copper wire across the rails that serves as a safety precaution against lightning strikes and other faults. After this, you can attach your solar panels to your racking equipment.
Connect to your main electrical board
After you have fully installed your panel and system, be sure to schedule an inspection with the local construction authority closest to you. This will ensure that your system complies with local ordinances. Once you pass this inspection, you can apply to connect to the grid. The local utility company will give you a meter to record your power exports.
Get in touch with your utility company and request permission to turn on (PTO) if necessary in your area
From there, turn on your system after you have the proper approval and check how the system is functioning with a solar monitoring app.
Maintenance of DIY solar panel systems
One of the benefits of working with a certified solar installer is the warranty that comes with their service. Solar panel manufacturers provide a range of warranties that guarantee you will have support and coverage in the unlikely event of an issue caused by unusual circumstances, such as large hail or falling tree branches. Power output warranties guarantee that panel performance won’t fall below a specified level over the term of the warranty (usually 25 years). For instance, a manufacturer might provide a warranty to guarantee that peak power output won’t fall below 85% for 25 years.
Frequently asked questions about DIY solar panels
If you’re considering a DIY solar panel kit, but still have concerns about the best options, process, and general cost, check out a few of the most common questions we encounter when talking to solar shoppers:
DIY solar panels may be tempting to install, but their long-term worth may be up for debate due to quality alone. Typically, a solar panel system should continue to generate electricity for 25 to 35 years, so it’s important to invest in quality equipment and a reputable installer. If you purchase a home solar panel kit from a retailer, you may be paying less per watt, but you’re not going to get the same efficiency or quality that professional installers usually offer with their products.
You’ll also likely forgo any warranties that come with your solar panel system, as warranties often only apply when the system is installed by a certified installer. It’s also important to mention that if you still need to rely on some utility power and remain connected to the grid, DIY solar panels are typically not worth it. They are best used for small off-grid applications, like RVs, where a solar generator or solar battery bank can provide you power when you otherwise may not have access.
As a DIYer, you don’t need to be an electrician to install solar panels. It’s certainly not illegal to go the DIY route if you choose to. However, when it comes to installing a costly electrical system on your property, we recommend relying on professionals with technical know-how —their experience is invaluable and it can make a huge difference in the overall quality and performance of your system. Plus, solar installers will help you fill out permits and file important paperwork that you might not otherwise know is required.
You can find reliable DIY solar panels at retailers like Home Depot or from manufacturers like Grape Solar, for between 6,000 to 11,000, depending on your system size needs. For lower cost options, some manufacturers sell DIY solar panels on Amazon for anywhere between 1,600 to 2,500. You may be looking at additional costs if you want to install a solar battery and charge controller system as part of your DIY project.
Should you install solar yourself or hire an installer?
If you’re wavering between a DIY solar system and hiring a solar installer, getting a ballpark estimate for an installation may help you in your decision process. With our Solar Calculator, you can see upfront cost and long-term savings estimates based on your location and roof type to determine if a solar installation is the best choice for you. If you’re looking to get quotes from local contractors today, be sure to check out the quote comparison platform in the EnergySage Marketplace.
reading on EnergySage
Looking to go solar? Here’s everything you need to know in… How to install solar panels Solar shingles: what you need to know in 2023 Best solar panels in 2023: Top products compared Are solar panels worth it in 2023?
How much do solar panels cost to install? Average 2022 and why it’s worth it
Whether you want to save on your monthly power bill or secure a future with no power outages, the cost of solar panels may well be worth it long-term.
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If you’re curious to know how much solar panels cost to install and whether it’s worth having the work done to your home, you are not alone. Solar energy is ‘booming’ in the United States, with an average annual growth rate of 33 percent and a drop in price by 70 percent in the last decade, according to the Solar Energy Industries Association (SEIA). In a nutshell, installing solar panels is considered a pretty hot trend right now – pun intended.
According to the home services website Fixr, the average cost to install solar panels on a home is 18,000. In the U.S., the installation ranges from 7,000 for a 1.9 kW supplemental system installed on a roof to 70,000 for a 10 kW system for a fully off-grid home. But, of course, the actual cost depends on several factors.
Factors that affect the cost of solar panels
Before a solar professional can give you a cost estimate to install panels on your home, they’ll ask you many questions about your energy usage and what you want out of a system, if your aim is to reduce energy bills and be more eco-friendly for example. Then, they’ll calculate that cost based on the following factors:
- Your geographic location–Solar panels and the labor to install them cost more in different regions.
- How much power you want to offset
- The size of your roof
- Your usage patterns
- The efficiency of the home
- The cost of the equipment
- If you wish to add a storage system
- Other expenses like permits, warranties, and municipal fees.
Most homeowners install solar panels on their homes to save money on their energy bills. And according to Jamie Haenggi, executive vice president and chief operating officer of ADT Solar, ‘most consumers save on par or less of their regular energy bills.’ However, how much homeowners save varies. ‘You can have neighbors with identical systems, and they will see different levels of savings on their bills,’ says Jayson Waller, founder and CEO of pink energy. ‘Usage patterns, the efficiency of the homes, the location of the panels, amount of shading, and even how much you entertain are all contributing factors.’
Waller likes to direct homeowners to other advantages of solar energy, like future-proofing your home against power outages. ‘When you have battery storage, power outages don’t affect you. Also, more people own electric vehicles and work and school from home. So they can’t have a power outage and still do their jobs.’
However, Haenggi points out that home energy costs are rising faster than the rate of inflation. ‘Since 2019, these costs have risen 12 percent,’ she says, ‘and as much as 20 percent in the west.’ She likes to ask homeowners whether they prefer to invest in their power company or in the value of their own home. She says they’re foolproofing their future energy independence by investing in solar.
According to the ADT Solar website, the average homeowner saves between 1,220 and 1,972 per year and can recoup their investment in 9 to 12 years. But, of course, this depends on the system’s total cost, the value of incentives, and any financing charges.
Other top reasons to consider installing solar panels on your home include:
- Renewable energy is earth-friendly and doesn’t rely on fossil fuels.
- Increased home value–as much as 4.1 percent, according to a 2019 Zillow study.
- Solar works everywhere, even in regions with low amounts of sunlight.
Cost of installing solar panels
Sometimes, solar power sounds too good to be true. That’s because the few cons are frequently dismissed. So here are a few you’ll want to consider.
- Solar panels are ugly. Let’s face it, despite the increase in home value, solar panels do nothing for curb appeal.
- Not a DIY job. Unless you’re skilled in solar installation and replacing roofing, this is a job best left to the pros.
- You may not have a large enough roof to house all the panels you need.
- Without battery storage, the reliability of solar is spotty.
How to determine the number of panels you’ll need
The following calculations give you an idea of your solar needs before shopping around. First, obtain your 12 past utility bills or access your account online. Next, find the ‘kWh used.’ This number reflects your energy consumption for the month. To calculate your monthly average, add up the monthly kWh used for a year and divide by 12.
For a daily average, divide your monthly kWh average by 30. For example, a monthly average of 975 kWh gives you a daily average of 32.5 kWh. Since the typical solar panel produces about 1 kWh per day, you’ll need around 33 panels for this illustration. However, according to Waller, how much energy a panel produces depends on its quality, type, material, and location.
Fixr estimates the panel cost for this size system at around 7,500 to 18,000, depending on each panel’s type, brand, and wattage. In addition, you’ll have the cost of the inverters, the mounting system, and the labor.
However, your actual need also depends on your energy goals. For example, if you want to replace your home’s energy use with solar, you’ll need to add battery storage to hold excess power for non-sunny hours, like night, and a few more panels. A solar battery system costs from 4,000 to 14,000, according to Fixr. But remember, if you only want to supplement your energy consumption with solar, you can get away with a smaller system.
Tips for choosing a solar panel installer
Since installing solar panels is beyond the skill set of the average DIY homeowner, you’ll probably want to hire a professional. ‘Look for a reputable company you can trust,’ Haenggi says. ‘Someone who’s in it for the long term and has solid financial stability.’ When shopping for a local solar installer for your home, ask the following questions:
- How many years of experience do you have? Waller suggests finding an installer with at least ten years of experience.
- How many installations have you done?
- Do you have an installation crew, or do you hire subcontractors? You want the company to perform its own work.
- Are you licensed, bonded, and insured?
- Do you offer a power production guarantee? A production guarantee (PG) states that the system they install will produce a guaranteed amount of energy over a certain length of time. Haenggi says this is important because panels lose efficacy over time.
- How many employees do you have?
- What size system do you recommend for my home? If you’re comparing quotes from several companies, always compare apples with apples.
- Is your quote my cost before or after tax incentives?
Other solar panel cost considerations
If the cost of solar is prohibitive, Haenggi suggests getting an energy audit of your home. She says that an ADT Solar pro will evaluate a home’s efficiency and make suggestions of other ways to reduce consumption. Many power companies offer the same service. ‘Implementing these efficiency tactics can reduce consumption by 10-15 percent,’ she says. Whether you go solar or not, she recommends investing in an energy audit and the recommendations that come with it.
If going solar aligns with your life plan, you have a lot to look forward to. Besides cost savings, you’ll be doing your part to invest in your home and your home planet.
How Much Does It Cost To Install Solar Panels In Maine?
To help you make the most informed decision about solar, we designed this free solar calculator. Input details like the exact location of the property, your current electrical usage, and information about your roof’s orientation, shade, and pitch to receive an estimated price and potential energy cost savings for your custom system.
What Type Of Solar Electric Systems Are Available?
The average system costs noted above are for a grid-tied, roof-mounted solar electric system. Grid-tied, rooftop solar systems are our most common type of solar electric system installed throughout Maine.
However, other solar system options are available, such as grid-tied, grid-tied battery backup, off-grid battery-based systems, and ground mounts. To ensure you get the information you need to make an informed decision about what type of solar system will work best for you, we have outlined the options available below.
These are the most common type of solar electric systems in Maine. With this system, your home can be powered by the sun when it is shining. You are still connected to your utility provider (often called the grid), so you still have power when sunlight is unavailable. Net Metering allows the electricity generated by your solar system to offset the electricity used from the grid during the night or on a cloudy day. This ensures that all of the electricity your system produces offsets your usage and ultimately your electric bill. However, if the grid goes down, your system will shut off, and you will lose power. Grid-tied systems are the less expensive option due to not needing batteries and other additional equipment.
Installing a grid-tied solar electric system is an excellent step towards energy independence. However, during a power outage, your system does not provide power. By pairing a grid-tied solar electric system with battery backup, you can bank the energy you produce for times when you need it, like when the grid goes down. Although whole-house backup is achievable, most grid-tied battery backup systems are designed only to power “critical” electrical loads. If you are thinking about going solar now but want to add batteries in the future, we can design your system to accommodate your future battery needs. These systems are more costly than grid-tied alone.
Many people like the idea of installing an off-grid solar system because of its independence. However, it could require a lifestyle change to reduce energy consumption as you cannot rely on the grid. These systems tend to be most popular in rural locations such as camps or where the nearest power line may be miles away. You will need batteries to store your energy, must monitor the battery health, and be aware that you have a finite amount of energy you can collect and store on a daily basis. These systems have special design and operation requirements making them more challenging to install and service than a more common grid-tied system. They also require more components and usually cost more. Maine Solar Solutions has a design and installation team experienced with off-grid solar systems if you would like to learn more.
Rooftop Solar Versus Ground Mounted Solar
There are two common types of solar panel installations for grid-tied solar systems: roof-mounted and ground-mounted.
Most of the solar electric systems installed in Maine feature rooftop solar arrays. But sometimes aesthetic concerns or heavily shaded roofs make consideration of a ground-mounted solar array advisable. Ground-mounted solar arrays typically cost between 15 – 25% more than rooftop solar arrays. The expense of ground anchors, racking, and trenching accounts for this higher cost. Although a ground-mounted solar array costs more than an equal-sized rooftop array, many of our customers have found that a ground-mounted array provides the best balance of cost, aesthetics, and value. Our experienced solar consultants can show you the relative costs of both options and help you determine what makes the most sense.
The Homeowner’s Guide to Going Solar In Maine
This free resource is packed with answers to the most common questions we receive about solar energy installations in Maine.
What Factors Affect The Cost Of A Solar Electric System?
During your free solar site assessment, we gather information about your home that we use to design your system. We prepare a proposal based on your electricity usage and we show a couple of different solar panel options. Below is the information that we gather that helps us get you a fixed-cost system price.
- Electricity Usage:We review your electric bills and calculate the amount of electricity you use over the course of a year.
- Roof Information: People often ask, “Is my roof good for solar? Does my house face the right way for solar panels? What’s the ideal roof angle for solar?” To answer those questions our solar consultants will measure the angle or pitch of your roof and determine the orientation of your home towards the south. Roofs that face towards the southeast or southwest may require an additional panel or two to produce the same amount of power as a roof that faces directly south. People are often surprised to learn that even if their roof faces directly towards the east or west, annual solar production can still make installing a solar system an affordable investment.
- Shading Measurements: For electricity production, the more exposed your roof is to sunlight throughout the day, the better. Your roof does not need to have full sun all day to be a good candidate for solar, and a partially shaded roof may only require a few additional panels to match the production of an unshaded roof.
- Solar Panel Type:Solar panels account for the greatest equipment cost for a solar electric system. We offer several different solar panels to choose from. There are many solar panel manufacturers, and each manufacturer offers multiple solar panel models. Solar panels differ in size, wattage, efficiency, appearance, and warranty. Each of these specifications impacts the solar panel’s cost and factors into their relative value. Our customers find it helpful when we present a range of solar panel options and take the time to educate them about the differences in panel features, performance, cost, and value.
What Incentives Are Available For Installing Solar?
The primary incentive available to homeowners installing solar in Maine is the Federal Solar Tax Credit (ITC). Solar electric systems installed between 2022 and 2032 qualify for a 30% federal tax credit. This tax credit is scheduled to fall to 26% in 2033 and 22% in 2034. It is currently set to expire in 2035. There’s a lot of information about the ITC out there, so to help, we gathered answers to some commonly asked questions about the federal tax credit here.
What’s Included In My Solar Electric System Costs?
Once your system is designed, and you have chosen which solar panels and optional add-ons you would like to include in your system, we prepare a fixed-cost installation contract that includes all of the equipment and labor required to install a safe, code-compliant system. Your fixed-cost solar electric system includes the following:
EQUIPMENT
- Solar Panels
- Inverter system
- Power Optimizers
- System monitoring so that you can watch the entire array and each panel’s output information on your desktop or your phone
- Racking and roof attachment equipment
- Roof-specific attachment points
- Electrical components required for a safe, code-compliant installation
INSTALLATION
- Installation labor by Maine Solar Solutions qualified electricians and installers
- Maine Solar Solutions 10-year Workmanship warranty
CUSTOMER SERVICE AND PAPERWORK
- Assistance with all required paperwork, utility, and permitting
- Utility interconnection application fee
- Electric and building permits and associated fees
What Are The Additional Costs Involved To Go Solar?
During our site evaluation, we may determine that your electric service or breaker panel will need to be upgraded to accommodate the solar installation. Your solar proposal will detail the cost of any additional electrical work, and the final system cost will include these costs.
What Add-ons Or Options Are Available When Installing A Solar Electric System?
Battery Backup Systems:A grid-tied solar electric system will not provide backup power during a power outage. We offer battery systems for customers seeking to add a backup power source to their grid-tied solar electric system. The most popular battery backup system is the Telsa Powerwall. Battery systems are eligible for the 30% federal tax credit. If you’re curious about batteries, your solar consultant will review options with you. Even if you aren’t ready for batteries during your initial solar installation, your solar electric system can be designed to allow for the easy addition of batteries later.
Electric Vehicle (EV) Chargers:With the growing popularity of electric cars, many of our solar customers are requesting the installation of an electric car charging station at their homes. Combining an electric vehicle with a solar electric system in your home allows you to fix the cost of operating your electric car and truly enables you to operate your EV as a carbon-free, renewable energy vehicle.
Is Going Solar A Good Return on Investment (ROI) In Maine?
Owning a solar electric system is one of the few investments that truly pays for itself in savings over time. A properly sized and designed solar electric system can eliminate nearly your entire annual electric bill. For most Maine homeowners, the solar electric system will pay for itself in as few as 7-10 years. Customers choosing to finance the purchase of their system may see longer payback times.
Once the system has paid for itself, a typical Maine solar system owner will only have to pay their fixed utility service charge – currently around 15 per month. Whether you pay for your solar system out of or choose to finance the purchase you have essentially fixed your cost of electricity and protected yourself from ever-increasing electricity price increases!
For someone in their 50’s, I looked at installing solar panels as saving for my 401K. Because when I am 70, who knows what the price of electricity will be. I am fixing the cost of most of my electricity for life!
– Cathy G., Gorham, ME
What Are The Ways To Pay For Solar Electric Systems?
Most customers choose between paying upfront for their solar electric system or financing the purchase and paying a monthly payment.
Direct Purchase: Choosing to pay for a solar electric system out of will give you the highest return on your investment. You’ll own your solar panels immediately and not have to pay any interest. Many of our customers have taken advantage of low-interest rates and increasing home values to pay for their solar systems with home equity loans or when refinancing their mortgages.
Solar Loans: Financing the purchase of a solar electric system allows you to fix your cost of electricity for the lifetime of your loan. Your fixed monthly payments may at first be higher than your monthly electric bill, but over time as electricity rates go up, your monthly payments will stay the same. Maine Solar Solutions offers solar financing through Mosaic. Mosaic offers no money down, low-interest rates, and a variety of term lengths with no prepayment penalties. Additional financing options may be available through your local bank or credit union.
Other Considerations
Cost should not be the only factor when choosing a solar installation company. A solar electric system will last more than 25 years; it’s important to consider a qualified, experienced company that will provide guidance and support throughout the entire system life span. From initial consult, through installation, with ongoing support and consultation, choose a company with a proven track record. Keep in mind that solar electric systems are installed to meet the requirements of the National Electric Code and as such need to be installed by licensed electricians and qualified technicians under their supervision.
Free Solar Site Assessment
Curious to see what a solar electric system would cost for your home?
At Maine Solar Solutions, our goal is to give you the information you need to make an informed decision. Schedule an informative, free, no-obligation solar consultation with one of our knowledgeable solar consultants today and begin your path towards energy independence.
Why Install Solar Panels in Your Home? Should You Go Solar in 2023?
New tax incentives are making the idea of solar panels more enticing, especially with higher electric and heating bills. Here are some things to consider.
Rising energy and new tax incentives for green home improvements this year are heating up interest in solar.
Experts say it’s a good time for many homeowners to harness solar energy. Though solar power may not work for every home, when it does it can drastically cut home heating bills and lessen damage to the environment caused by the burning of fossil fuels. And while installing a solar energy system is still not cheap, the up-front cost has gone down significantly in the past 10 years.
Cost of solar panels
Costs vary from state to state and depend on things like the size and quality of the solar array. Nationally, the average cost for a residential photovoltaic system is about 20,000 after 30% in federal tax credits, according to EnergySage.com, an information website for residential alternative energy.
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Nick Liberati, communications manager for EnergySage, breaks it down: The national average for a 10-kilowatt system, priced at the national average of 2.86-per-watt, costs 28,600. The federal tax credit allows you to deduct 30% of the cost of installing solar panels from your federal taxes (or in this case, a total of 8,580), bringing the cost to 20,020.
On average, it takes 8.7 years to break even — that is, to save enough on power to recover the cost of solar panels. After that, your solar energy is free until the equipment wears out. Solar panels are typically guaranteed to last 20 to 25 years, although the system’s inverter is generally guaranteed for 10 years. The inverter converts DC electricity generated by solar panels into AC electricity that’s used in your house.
Should you buy a solar panel battery?
The average solar panel cost quoted above doesn’t include storage. A battery can add an average of more than 9,000 after the federal tax credit, depending on the size and other features. Specifically, Liberati says, the national average cost for a battery in the 10-12 kilowatt hour size range is about 13,000. Starting in 2023, all residential batteries will be eligible for the full 30% tax credit as long as they’re over 3 kWh in size. So you’d be able to deduct 3,900 from your taxes, leaving you with a post-tax credit price of 9,100 for the battery.
Although batteries are becoming more popular, most solar houses don’t have them. Instead, most consumers send their excess energy to their utility as credit toward their power usage when the panels aren’t collecting enough, such as at night.
Without a battery, if your utility loses power, your home does, too, even when it’s sunny. “The primary reason for this is safety,” Liberati says. “If your solar panel system is still producing electricity and sending it to the grid during an outage, those energized wires pose a serious safety threat to any utility workers trying to restore electric service to the grid.
That won’t be a problem if you have a battery with “islanding capability.” Islanding is a technology that allows your home to support itself. “You can keep producing solar energy and feeding it to your battery during an outage without posing a risk to line workers because a system that is islanded won’t push excess electricity onto the grid,” Liberati explains. He notes that not all solar panel systems with energy storage can automatically island. If you get a battery, you should make sure your installer gives you the right equipment to enable this technology.
Things to consider when getting solar panels
With so many thousands of dollars required upfront, going solar can be intimidating for many people, notes Vikram Aggarwal, CEO and founder of EnergySage.
Aggarwal urges comparison shopping and checking any claims — such as that your utility or the government will give you solar for free. EnergySage, he says, helps with this and connects consumers with reputable contractors. The site also has information about incentives offered by different states.
Another factor to consider is how your utility company credits you for the solar energy it gets from you, particularly if you don’t have a battery and are reliant on the utility to run your home when your panels aren’t collecting enough.
Michael Ware, a senior solar specialist with consulting firm EcoMotion, says there’s tension over how the utilities credit customers for solar power. The utilities want a discount, similar to how they pay for other forms of energy that they sell to consumers. But solar advocates want the utilities to credit customers the full amount they have to pay for their power, known as net metering.
Sherri Shields, director of communications and marketing for the Florida Solar Energy Center at the University of Central Florida, said people who install solar should check with their insurance companies about whether they cover the panels or whether you have to purchase extra insurance.
Other reasons to go solar
Saving money is just one reason people go solar, notes Robert Stoner, deputy director for Science and Technology of the MIT Energy Initiative. “I think most people who invest in residential rooftop solar simply want to be part of the transition, and to a lesser degree to be seen to be,” he says. “Nothing wrong with that…Some, like me, own homes — my weekend home is at the end of a five-mile-long barrier beach — that simply don’t have the option to have grid electricity.” Stoner says his solar system, which includes a bank of lead acid batteries, provides all of his electricity, “And it brings me a lot of joy! Some of that comes from the feeling of independence I get, and some of it from getting to experience the miracle of electricity being produced from the sun.”
Rotraut Bockstahler, 86, of Sarasota, Fla., with her husband, installed 26 solar panels and a Tesla battery in November 2016. Installing the solar panels cost just under 28,000, and they received a tax credit of about 8,400, leaving a net cost of about 19,600. Getting the battery cost about 8,400, and they received a tax credit of about 2,500, for a net cost of about 5,900. “We feel strongly about climate change and wish to make a contribution to reverse that trend,” Bockstahler says. Going solar “was one of the most positive decisions we made for our living in Florida. We have saved money, made a contribution to fighting climate change and were fortunate enough to have electricity every time there was an outage in the electric grid.”
Going solar doesn’t always cut you off from the power company entirely. When the system was first installed, Bockstahler says, their need for electricity from the utility dropped significantly and their power bills went down to about 40 to 60 a month. With increasing energy costs, they’re now over 100 a month. But in addition to the power bill savings, she counts the money saved on food that didn’t spoil and hotel rooms they didn’t have to get when the power grid failed.
If they have any regrets, she says, it’s that they didn’t get a bigger system. “We feel that the decision we made about the number of panels we have, was maybe a little too conservative and should have included more circuits that could be powered by the battery,” she says.
Should you wait for new solar panel technology?
Another reason you might hesitate to go solar is that technology might advance to offer more efficient and/or less expensive options. And it’s true that different technologies continue to emerge. For instance, some companies are offering roof shingles that serve as solar collectors. Also, standard solar panels have become more efficient, less expensive and better looking.
If you wait, might you have a chance to get something better?
Aggarwal says solar panels do improve slightly each year, but not enough to justify waiting for a dramatic change. A decade ago, he said, the panels would each generate maybe 240 or 245 watts. Now, they each produce 400 or 420 watts of power. So this means, you can get more power from a system that covers the same amount of roof space. The panels, he says, used to be bright blue with silver around the edges. Now, they’re all black and “look beautiful,” he says. And they’re more durable.
Solar shingles, he says, so far haven’t turned out to be ready yet for broad use. Aggarwal says a roofing company plans to introduce “an interesting product” along those lines sometime this year. But solar shingles are still less efficient and more expensive than traditional solar panels. However, if you’re planning to replace your roof, he says, solar shingles may be worth considering.
Ware said he expects the price of batteries to come down in the next five or 10 years as companies explore different battery technologies. The currently most popular battery technology is lithium-ion, which may pose a fire hazard in some instances, leading some jurisdictions to require that they be mounted outdoors.
Is solar right for you?
Some homes are not suitable for solar:
- If you have an old roof that needs to be replaced in a few years, for example, it makes sense to wait because removing and reinstalling solar panels can cost thousands.
- If your roof faces north or is in the shade, you probably aren’t a good solar candidate.
- It’s also more complicated and expensive to install solar on roofs covered with clay tiles, Liberati says.
There is another option for people who can’t put solar collectors on their roofs.
Community solar involves an array of solar panels that people can purchase an interest in. People who participate in community solar generally receive credit from their utility company for power generated by their share of the project. You can find information about community solar projects in your area on the EnergySage website.
Note: This item first appeared in Kiplinger’s Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe here if you want retirement advice that’s right on the money.