This Is How Many Solar Panels You Need to Power Your House
This formula will tell you how many solar panels are needed to meet 100% of your home’s energy demand.
Jackie Lam is a contributor for CNET Money. A personal finance writer for over 8 years, she covers money management, insurance, investing, banking and personal stories. An AFC® accredited financial coach, she is passionate about helping freelance creatives design money systems on irregular income, gain greater awareness of their money narratives and overcome mental and emotional blocks. She is the 2022 recipient of Money Management International’s Financial Literacy and Education in Communities (FLEC) Award and a two-time Plutus Awards nominee for Best Freelancer in Personal Finance Media. She lives in Los Angeles where she spends her free time swimming, drumming and daydreaming about stickers.
- She is the 2022 recipient of Money Management International’s Financial Literacy and Education in Communities (FLEC) Award and a two-time Plutus Awards nominee for Best Freelancer in Personal Finance Media.
Taylor Freitas is a freelance writer and has contributed to publications including LA Weekly, Safety.com, and Hospitality Technology. She holds a B.A. in Print and Digital Journalism from the University of Southern California.
Chi Odogwu is a digital consultant, professor, and writer with over a decade of experience in finance and management consulting. He has a strong background in the private equity sector, having worked as a consultant at PwC and a research analyst at Renaissance Capital. Additionally, he has bylines in well-known publications, including Entrepreneur, Forbes, NextAdvisor, and CNET. He has also leveraged his writing talent to create educational email courses for his clients and ghostwritten op-eds published in top-tier publications such as Forbes, CoinDesk, CoinTelegraph, Insider, Decrypt, and Blockworks. In addition to his writing, education, and business pursuits, Chi hosts the top-rated Bulletproof Entrepreneur Podcast. Through this podcast, he engages in insightful conversations with talented individuals from various fields, allowing him to share a wealth of knowledge and inspiration with his listeners.
High inflation and the soaring costs of power bills can make powering your home with solar energy quite appealing. And if the allure of going green and saving money has you wanting to go solar, you’ll need to figure a few things before the installer swings by. For one, the number of solar panels to adequately meet your home energy needs.
A common misconception is to gauge how much bang for your buck you’re getting purely based on wattage, says Courtney Corda, co-founder of the California-based solar company Corda Solar. Knowing how many panels you need isn’t just about wattage, but the costs involved in installing, panel performance, location and your usage needs, Corda explains.
Here’s how to figure out how many panels can support your energy needs and what other factors can interfere in your production goals.
Can solar panels save you money?
Interested in understanding the impact solar can have on your home? Enter some basic information below, and we’ll instantly provide a free estimate of your energy savings.
How to calculate how many solar panels you will need
To get a realistic estimate of how many solar panels a home might need, we turned to Jake Edie, an adjunct professor at the University of Illinois Chicago. Edie provided us with a straightforward calculation method.
If you’re curious about how many solar panels your home might require, here’s how you can figure it out, Edie says. Let’s say your household uses 1,500 kWh of electricity each month. Here are the steps to calculate the solar panels you’ll need.
Can solar panels save you money?
Interested in understanding the impact solar can have on your home? Enter some basic information below, and we’ll instantly provide a free estimate of your energy savings.
Step 1. Review your monthly electric bill: It’s important to determine how many kilowatt-hours of electricity you consume monthly. In this example, this particular home uses 1,500 kWh every month.
Step 2. Convert monthly energy use to daily use: Given 1,500 kWh is consumed per month, to ascertain the daily usage, we need to divide this figure by the average number of days in a month, which is roughly 30.42 days (365 days divided by 12 months).
Hence, the average daily use = 1,500 kWh / 30.42, approximating 49.3 kWh daily.
Step 3. Determine peak sunlight hours: This factor varies based on location and climate. For this example, let’s assume that this home receives an average of about five peak sunlight hours per day.
To calculate the total daily energy production required, divide the daily energy consumption by the number of peak sunlight hours. This gives the amount of energy your solar panels need to produce per day.
Energy production required = 49.3 kWh per day / 5 hours, which equals 9.86 kW.
Step 4. Calculate the number of panels: Lastly, you’ll need to determine the wattage of the solar panels you plan to install. The average solar panel in the US is rated between 250 and 400 watts. For this example, we’ll assume the selected solar panel has a rating of 350 watts.
By dividing 350 by 1,000, we can convert this to kilowatts or kW. Therefore, 350 watts equals 0.35 kW.
To determine the required number of solar panels, we must divide the daily energy production needed by the solar panel’s power output.
Number of solar panels required = 9.86 kW / 0.35 kW per panel, which equals 28.17 panels.
This homeowner will need approximately 29 solar panels to generate enough electricity to match their current usage from the municipal electric company. While this calculation may seem straightforward, there are many factors that can affect the effectiveness of solar panels, such as shading, roof orientation, and seasonal variations in peak sunlight.
It is highly recommended that you seek the guidance of a professional solar installer who can assess your circumstances and provide a tailored solution to meet your needs.They should be certified from the North American Board of Certified Energy Practitioners, which is the solar industry standard. CNET also has a well-researched list of best solar companies.
Other factors that affect how many solar panels you need
There are a variety of factors to take into consideration that will help you and an installer determine how many solar panels you need to power your home. Here is a breakdown:
Solar panel wattage
One big part of a solar panel’s performance is its wattage and will affect how many panels you need. The higher the wattage, the more power a panel can generate.
Most residential solar panels have ratings of 250 to 400 watts. The most efficient solar panels on the market are 370 to 445-watt models. The higher the wattage rating, the higher the output. In turn, the fewer panels you might need.
For example, you might buy a solar panel with a listed output of 440 watts. You’ll need to multiply the panel’s wattage by how many hours of sun you get every day to understand how much energy it will produce.
If you don’t have much space, you might want to invest in solar panels with higher efficiency and wattage ratings since they’re equipped to generate more energy per panel. But they’re also more expensive, so bear that in mind if the solar budget for your home is tight.
Output efficiency
If your roof has limited space for panels, you’re going to want to get the most performance per square inch of panel that you can, explains Corda.
Scientists and technical developers of solar panels have been working hard for decades to try to make each solar cell on the panel able to convert more of the sun’s light to electricity than before, or to make them more efficient, says Corda.
As she explains, currently, the most efficient panels on the market have anywhere from 18% to 22.8% efficiency, with most panels hovering around 20% efficiency. So the higher the efficiency, the fewer solar panels you might need.
In reality, a more efficient solar panel will require fewer panels overall for your home, assuming all other factors are equal.
Production ratios
A production ratio for solar panels helps you determine how much energy you can get from a panel. The production ratio, or performance ratio, is an important measure of the effectiveness and efficiency of a solar system. It compares the actual output of the system to the output it would produce under ideal conditions. This ratio takes into account factors that reduce output, such as temperature, dust, snow, shade, aging of the panels and inefficiencies in the inverter.
The performance ratio is expressed as a percentage, with a higher ratio indicating that the PV system is producing a greater percentage of its theoretical output. For example, a performance ratio of 80% means that the system is producing 80% of its rated output in real-world conditions. The higher the production ratios, the fewer panels you might need.
Panel size
There are three main sizes for solar panels: 60-cell, 72-cell and 96-cell. The 60- and 72-cell panels are more common for residential installations are generally about 3 by 5 feet, or 15 square feet.
Where you live and hours of sunlight
The more hours of sunlight your roof is exposed to, the fewer panels you’ll probably need to install. This is based on the direction, pitch and orientation of your roof, the weather and how much shade covers the roof. It also depends on the time of year and where you live.
In the winter [the solar panel] produces less than in the summer. So your energy production from solar will change throughout the year and then the usage within your home will change depending on what appliances are using electricity, says Justin Draplin, CEO of Eclipse Cottages, a sustainable home technology and development company.
So if you live in a really hot climate, then during the summer months, your electrical bill is going to be a lot higher to cool your home versus if you’re in a cold environment, your electrical bills are going to be a lot higher in the winter.
How much shade your roof gets always plays a factor in how many solar panels you’ll need for your home, Corda says. If your roof is covered by large oak trees or a chimney and gets a lot of shade, this will bump down solar panel output. In turn, you might need more panels to power your home. But if your roof doesn’t get much shade, your solar output will be higher for the same space.
Roof type and condition
The orientation, angle, shape and type of roof will affect the number of panels you can reasonably fit into a given area, explains Corda.
A home without a complicated roof structure, pitched at a 10 degree angle and south-facing is best for solar panels.
That would be an ideal roof for solar because you’ve got it tilted, it’s facing south, and the pitch of the roof is neither flat nor very steep, which is ideal for putting panels on there to capture as much energy from the sun as possible, says Corda. A house with a more complicated roof structure won’t be able to fit as many panels, she adds. For instance, Spanish tile-roofs are considered solar unfriendly and require special attachments.
Cost and budget
While powering your home on solar energy can save you money, it does require a serious investment upfront. The costs to power your home on solar and your budget will determine how many solar panels you can afford.
Currently, the average cost for a home solar panel system is around 3 per watt, according to data from the research firm Wood Mackenzie. Based on this figure, an 8-kilowatt sized system would be 24,000 before any tax breaks or incentives kick in.
Whether you are paying cash or financing, knowing what you can afford will play a factor in how many panels you add to your home.
Annual electricity usage
To know how many panels will meet your energy demand, you’ll need to know your annual energy usage. You can log onto your account online, review statements, you’ll see how many kilowatt hours of electricity you use. You’re going to want to look at your patterns over the course of a year.- if not the last couple of years, says Corda.
Once you have that number, you’ll know how much solar power you need to generate to cover your needs.
Besides recent use, factor in the future energy needs, Corda points out. For instance, do you anticipate purchasing an electric vehicle? Or do you plan on growing your family? Or are you and your spouse going to be working from home more? If so, then your energy needs will go up in the future years. On the flip side, if your teens will soon leave the nest to go to college, then you can expect your energy usage to taper off.
Your personal solar goals
Determining your personal solar goal is figuring out what you want to achieve with your solar panel addition. Living completely energy independent and off the grid would mean more solar panels. If you want to power your whole house, you have to really oversize it to make sure you have enough power in the winter, even though you’re going to be over producing in the summer, says Draplin.
Adding battery storage will also play a factor in how many panels you need. With solar battery storage, you can essentially bank energy and store it for later use when you’re producing excess energy.
If your goal is to lower your energy bill or reduce your carbon footprint, then maybe you won’t need as many panels, says Draplin.
Figuring out the number of solar panels you need is only part of the equation. Learn more about the benefits and costs of home solar from CNET:
Solar panel FAQs
Can I run my house on solar power only?
The simple answer is: Yes, you can power a house entirely on solar power. To meet your energy ends, you’ll want to factor in a handful of variables: the size, pitch and orientation of your roof, the size of panels you’d like to install, the amount of shade, output efficiency and wattage. Plus, you want to figure out current and future usage needs, and whether you want your entire home to be powered on solar energy or just part of it.
How Many Solar Panels Do I Need?
As more homes throughout the country consider installing solar panels, one question commonly asked is, “how many solar panels do I need?”. Well, it depends – there are a few factors that go into determining how many solar panels you would need to power your home or business; home energy usage, roof or property surface area, orientation of your roof and geographic location. In this piece, we’ll break it down for you.
How much solar energy do I need?
When determining how much solar energy you need; your home’s average energy usage is the first thing to look at. According to the U.S. Energy Information Administration, in 2019, the average electricity consumption for a U.S. residential utility customer was 10,649 kWh. That’s an average of about 877 kWh per month. To understand your own usage, a good rule of thumb is to look back at your total energy consumption from the last twelve months on your utility bills. Most utility bills provide this information. Divide that number by 12 and you have a great estimate of what you’ll need your solar panels to generate each month.
Where you live also plays an important role in how many solar panels you’ll need. For example, states in the northeast endure longer winters accompanied by shorter days during cooler months. Residents in these regions will most likely need more solar panels to generate the same amount of power as residents from sunnier and warmer climates would. It’s important to understand how many peak hours of sunlight your geographic location receives on average.
Factors That Affect Solar Panel Output Efficiency
All things being equal, the design of the solar panel determines how efficient it is. This, in turn, specifies how well each square foot can convert sunlight into energy.
For example, gridlines on most panels reduce the active surface area. Therefore, they are not as efficient as those without them. In addition, grid panels are susceptible to peeling, further reducing efficiency.
Quality plays a role, too. For example, if the construction is subpar and introduces corrosion and cracking, it can also impact the ability of the panel to absorb sunlight.
But as a rule of thumb, expect residential solar panels to give you between 150 – 370 watts. This translates to an average solar panel’s wattage per square foot of 15 watts.
How Much Do Solar Panels Cost on Average?
The average cost of a solar panel is around 0.65 to more than 2 per watt for high-end models. That means an average 6 kW system will set you back up to 12,000, depending on the location. This is exclusive of installation costs, which can bump the price up by another 5,000 – 10,000.
As a rule of thumb, PV systems in warmer locations are cheaper but require more panels, while the opposite is true with colder climates.
Fortunately, tax credits and incentives can cut solar panel installation costs and provide further savings throughout their lifespan.
How Many Solar Panels to Power a House?
When estimating how many kilowatts of solar do I need, it’s important to consider the size of your home. A home size of 1500 sqft would consume an avg. of 633 kWh/month, on the other hand, a 3000 sqft home would consume an avg. of 1185 kWh/month. An average homeowner would need about 28 to 34 solar panels to fully offset their electricity usage. The chart below is an estimate of the number of panels you could potentially need based on the size of your home.
How many solar panels do I need for a specifically sized solar system?
To determine the number of panels you need to achieve a given solar system size, divide it by the wattage of each panel (which averages around 320 watts).
For example, if you’re aiming for a 4 kW system, you’ll divide 4 kW (or 4,000 watts) by 320 watts to get 12.5. Round up the answer to 13, which is the number of panels you need.
How many solar panels do I need for common appliances?
You can also determine the number of panels you need on a per appliance basis. This approach is helpful if you want to add panels because of increased usage or when buying a new appliance.
To calculate this, divide the average annual wattage of the appliance by the panel wattage. For example, a 600 kWh refrigerator would need two solar panels (600 / 320)
Summary: Step-by-Step Guide to Determining Solar Panel Needs
Here are the steps to figure out the question, “what size solar system do I need?”
Measure your annual kWh usage or the yearly electricity consumption of your house. You can either consult a year’s worth of monthly electric bills or use the average American house consumption figure of 10,649 kWh / year as an estimate.
Figure out your panel wattage, which is how much electricity your panel produces under ideal conditions. For simplicity’s sake, you can use 320 watts as an estimate.
Estimate your production ratio, or how much electricity your panel produces based on the average sunlight. You can compute this by dividing your system wattage by its electricity output in a year. Or you can use the US estimate of between 1.3 and 1.6.
Plug the data into the formula: Panel number = kWh usage / production ratio / wattage
For example, let’s say your house has an estimated 12,800 kWh consumption. Assuming a production ratio of 1.6 and 320-watt panels, you would need:
Some homeowners might also ask, “how many square feet of solar panels do I need?” To answer this question, you first need to know that an average residential solar panel is around 17.5 feet. Then multiply this figure by the number of panels you need based on the steps we just outlined.
Thus, in our above example, a 12,800 kWh consumption will need 437.5 square feet of solar panels (or 25 panels x 17.5 feet)
Example Calculations
Before we get into the examples, it’s helpful to note that a home’s power usage isn’t entirely dependent on its square footage. Instead, the number of residents and their energy habits play a much bigger role.
But for the sake of people asking, “how much solar power do I need?” in terms of square footage, we’ve illustrated the examples in these terms.
Example 1: how many solar panels do I need for a 1000 Sq Ft Home?
Let’s assume the consumption of a 1,000 sq ft home with four residents and average usage to be 690 kWh per month or 8,280 kWh per year.
With a panel wattage of 320 and a production ratio of 1.4, the number of solar panels you’ll need is:
Solar Panels = 8,280 / 1.4 / 320 = 18.48
Example 2: how many solar panels for 2500 Sq Ft Home?
Let’s assume that our 2,500 sq ft home houses five people with regular energy usage habits. The estimated consumption would then be 1,131 kWh per month or 13,572 kWh per year.
Again, considering a 320W panel and a 1.4 production ratio, plugging the numbers in the equation gives us:
Solar Panels = 13,572 / 1.4 / 320 = 30.29
Calculators
Solar Panels kWh Calculator
You can use the calculator below to quickly determine your solar panel needs based on your average monthly kWh usage and the nearest city from your house. The latter helps better gauge the amount of sunlight you receive based on your location.
Solar Panel Square Footage Calculator
Alternatively, you can also figure out the number of solar panels you need based on the square footage. This is useful if you plan to install solar panels on a new house and haven’t tracked your monthly electricity consumption yet.
However, no calculator will do this for you directly since there’s no correlation between square footage and consumption.
But there’s a workaround. You can use the calculator below to get the predicted monthly kWh usage based on the number of people living in the house and their energy consumption habits:
Once you get the estimated monthly kWh usage, simply plug it into the solar panel kWh calculator above.
Not all roofs are suitable for solar panels
Apart from estimating how many solar panels you need, you should also consider the weight of the panels themselves.
On average, a single panel weighs around 40 pounds, adding around 2.8 pounds per square foot for a typical pitched roof and 5 pounds for flat roofs. Therefore, you need to make sure that your roof can support this added weight. You also need to consider the material, age, and structure of your roof.
According to the National Renewable Energy Laboratory of the U.S. Department of Energy, approximately 50% of homes can’t support rooftop solar panels. Community solar programs are a common way for many homeowners, businesses and renters to go solar without actually installing anything on their roof. Participants can subscribe to a nearby solar farm and pay a lower price for the electricity sourced from it. Through Community Solar with Nexamp, the process is similar to determine the size of a subscribers’ share of a solar farm is similar to determining the number of rooftop solar panels. We simply analyze a subscriber’s last 12-13 months of energy usage and recommend a suitable allocation of our farm for them to subscribe to at a discounted rate. The end goal is to offset as much of a subscriber’s annual electricity costs as possible.
At the end of the day, the number of solar panels you’ll need to see potential savings is unique to your home’s energy usage. Interesting in seeing how much you could save by joining our community solar program? Reach out to us by visiting our community solar page or call us at (800)-945-5124.
How Much Power Does A 4.5 kW Solar System Produce?
Dec 29th 2022
If you’ve been around solar circles, you’ve probably heard about solar systems and the benefits they provide. You might’ve even heard terms like Watts, wattage, kilowatt-hours, and so on being thrown around.
But most likely, you’ve often been left wondering how these terms relate to you and your solar installation. In fact, you’re not alone, as plenty of people have a hard time understanding exactly how much power a solar system of a certain size (kW) can generate.
Here, we answer your questions, including:
Our answers to the above questions will empower you with the information you need to choose the system size that’s right for your home or business.
How much power does a 4.5 kW solar system produce?
To determine how much power a 4.5kW solar system will produce, you need to know what a 4.5 kW solar system is.
A 4.5 kW solar system usually refers to a solar installation with an array of solar panels with a total wattage of at least 4.5 kW or 4500W. The individual wattage of the solar panels in the array doesn’t change the amount of energy produced by the whole solar panel array.
So to calculate the amount of energy produced by a 4.5kW system you only need to know:
1.The system size, e.g., 4.5kW, 10kW, etc.
2.The peak sun hours in your area. You can find the peak sun hours for your area here. Please keep in mind that peak sun hours can still vary by region within a state.
Once armed with this knowledge, finding out how much power or energy your 4.5kW solar installation will produce is easy.
You only need to multiply your system size (4.5kW) by the number of peak sun hours in your region.
Amount of Power Produced(Wh) = System Size(W) Peak Sun Hours(h)
In the following examples, we are going to calculate the minimum amount of power generated by a 4.5kW system in three different states:
Example 1 – New York (3-3.5 peak sun hours)
4500W 3h = 13500Wh or 13.5kWh
Example 2 – California (5-7.5 peak sun hours)
4500W 5h = 22500Wh or 22.5kWh
Example 3 – Arizona (7-8 peak sun hours)
4500W 7h = 31500Wh or 31.5kWh
On average, a 4.5kW solar system will produce between 15000Wh to 22500Wh (15kW-22.5kW).
To find out how much energy a solar panel produces per day, multiply the panel’s wattage with the number of daily peak sun hours.
How much power does a 10 kW solar system produce?
We are going to repeat almost the same process we used above. We need to know our system size (10kW or 10000W) and the number of peak sun hours in your region.
Suppose you lived in an area that gets 5 peak sun hours each day, your 10kW solar installation would generate:
Amount of Energy Produced by 10kW System (Wh) = 10000W 5 hours
Amount of Energy Produced by 10kW System (Wh) = 50000Wh or 50kWh
With different peak sun hours, the same 10kW system will produce different amounts of energy. For example, under 4 peak sun hours, your system will produce 40kWh and under 3 peak sun hours, it will be 30kWh, etc.
According to the US Energy Information Administration. the average US household used approximately 30kWh or 30000Wh of energy daily. So a 10kW solar system is more than enough to power the average household away from a grid supply, provided your region gets at least 3 peak sun hours.
How much power does a 15 kW solar system produce?
We repeat the same process used for the 4.5kW or 10kW solar systems above.
We multiply the system size by the number of peak sun hours in your area. We will use 5 peak sun hours in our example below. If your region gets a different amount of peak sun hours, replace the ‘5’ with your region’s peak sun hours.
Amount of Power Produced by 15kW solar system = System Size (W) Peak Sun Hours (h)
Amount of Power Produced by 15kW solar = 15000W 5 hours
Amount of Power Produced by 15kW solar = 75000Wh or 75kWh
On average, a 15000W solar system will produce between 45kWh and 75kW of energy.
What is needed for a solar power system?
A solar power system is made up of a combination of devices that allow a household or business to power their electrical devices using power from the sun.
It consists of about 6 main components. Sometimes, some of these devices can be combined into a multipurpose device.
Solar Panels: Generates energy by converting light from the sun into DC electrical power.
Inverter: Converts DC electrical power from the solar panels or batteries into AC electrical power used by most appliances.
Converter: Converts AC electrical power from the grid into DC electrical power that is used to either charge your batteries or power DC appliances.
Charge Controller: Controls and regulates the incoming power generated by the solar panels so that it doesn’t damage the battery or batteries.
Battery or Battery Pack: Stores DC electrical power for use during the night (when the solar panels don’t work) or when there’s no grid supply.
Connectors: These are wires used to transmit and distribute electrical power between the different devices in the solar power system. An example is the wires that link your solar panels to the charge controller.
Of course, the above are not all the devices needed in a solar power system. Other crucial accessories are mounts, brackets, circuit breakers, fuses, bolts, racks, etc.
If buying various components seems daunting, we recommend you check out our Renogy solar kits which have everything you need to set up a working solar installation.
How many solar panels do I need for a 4.5 kW solar system?
Many often find themselves in the trap of getting the most powerful solar panel with the highest wattage instead of getting the most suitable solar panel for your installation.
At the end of the day, what matters is the total wattage of your panels instead of the individual wattage of the panels in the system. Different panel wattages only mean you need more lower-wattage solar panels to generate the same amount of energy as a few higher-wattage panels.
Take a look at the table below that has how many Renogy panels of each wattage you need to build a 4.5kW solar system.
What can I run on a 4.5 kW solar system?
If the total wattage of your solar panel system is 4500W, you can generate anywhere between 13500Wh and 31500Wh of energy in the US.
The 31.kWh is generated in states like Arizona and California which can get 7 peak sun hours. In contrast, 13.5kWh is generated in areas like Pennsylvania and Massachusetts that get a low 3 peak sun hours.
Using the minimum 13500Wh as our guide post, which is about a third of the average energy used by a US household. We see that we can power almost any device that’s below 3000W depending on the inverter’s size.
Here’s a table with common household devices, their wattages, and how long a 13500Wh energy capacity can power that device.
With the right adjustments and conservation methods, a 4.5kW solar system should be able to power your home.
If you live in areas like Pennsylvania, Alaska, and Connecticut that get low peak sun hours, additional supply from the grid might be needed. That being said, the 4500W system can still reduce your power utility bills significantly.
If you live in areas like California, Arizona, and other areas that get at least 5.5 peak sun hours, it’s possible to power all the devices in an average US household as if it was on the grid. However, it’s recommended that you don’t use high-wattage devices like stoves on your solar circuit due to their high energy demand from your batteries.
How much does a 4.5 kW solar system cost in 2022?
Below you will find a table containing the costs of 4.5kW solar systems composed of different panel wattages. The individual panel wattages range from 100W to 550W, which is typically the range suitable for fixed rooftop or ground installations.
Our calculations are done using the default list prices, so you can take advantage of our promotions to get a sizable discount during your purchase.
If you look at the above table closely, you find that the Renogy 320W Monocrystalline Solar Panel offers the perfect blend of size, cost, and the number of panels.
Do note that the listed in the table above do not include the cost of the inverter, battery pack, charge controller, and other accessories needed for a solar installation. You will need to buy these items separately if you are not purchasing a pre-matched solar kit.
For the inverter, it’s wiser to buy an inverter charger that combines the features of both an inverter and a converter. An inverter charger not only powers your home, but also charges your battery using the grid supply. Some inverter chargers also have a built-in charge controller for solar panel charging.
We recommend buying an inverter-battery set consisting of one 3000W 12V PSW Inverter Charger and three 12V 100Ah Lithium Iron Phosphate Batteries. This set costs approximately 3,000 but could be much lower due to our buyer discounts. Alternatively, you could opt for more affordable AGM or Gel batteries of equal voltage and capacity.
Altogether, a 4.5kW solar power system with 14 320W panels, 1 3000W 12V inverter charger and 3 12V 100Ah batteries can cost around 8,600. This value can be lower or higher depending on your final purchasing decisions.
Your Best Bet. Renogy Solar
As one of the leading manufacturers in the solar industry, Renogy prides itself on delivering quality products that will last you a long time. That’s why we have robust policies, warranties and community to help you in case you are not satisfied with a Renogy product.
Renogy offers all the products. components, and accessories you need to set up a working solar installation today.
We also have 400Ah 12V batteries and 48V solar systems that are blazing a trail forward for efficient solar technology for today and tomorrow.
Our high-quality solar devices continue to receive positive reviews from previous buyers and independent reviewers on different platforms.
To learn more about our products and promotions, visit our homepage or contact us.
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Solar Panel Cost
The cost of solar panels has declined dramatically over the last several decades and, with a sharp rise in utility electricity rates in 2022, home solar now offers more cost savings potential than ever before.
In fact, the 2023 Heatmap Climate Poll found that 46% of US adults want to power their homes with solar panels in the future while 13% already do.
So, what’s standing in the way of American homeowners and solar panels? The biggest hurdle is often the cost of solar panels. And like a monster in a horror movie, the cost of solar panels is far less intimidating once you shine some light on it and understand how it works.
In this article, we’ll explore:
As always, our goal is to give you the resources and knowledge to make educated decisions during the solar process.
Is the price of solar panels falling?
The price of solar panels has declined substantially over the last decade as the industry has matured and reached production at the largest global scale.
Since 2010, solar panel have fallen by roughly 90% while global solar deployment has grown by over 400%, and this incredible growth rate along the entire global solar supply chain has dramatically reduced prices.
Just like computers, big-screen TVs, and cell phones, the economies of scale that solar panels now enjoy have produced a dramatic cost curve that has fundamentally changed the energy industry.
Utility-scale solar installations are now cheaper than all other forms of power generation in many parts of the world and will continue to replace older, dirtier power plants run on coal and natural gas.
Additionally, homeowners are now able to own their power production more cost-effectively than ever before.
Price per Watt vs cost per kWh
There are two main ways to calculate the cost of a solar system:
- Price per watt (/W) is useful for comparing multiple solar offers
- Cost per kilowatt-hour (cents/kWh) is useful for comparing the cost of solar versus grid energy
Let’s dive a little further into each measurement.
What is solar price per watt?
A fully installed solar system typically costs 3 to 5 per watt before incentives like the 30% tax credit are applied. Using this measurement, 5,000 Watt solar system (5 kW) would have a gross cost between 15,00 and 25,000.
Price per watt for larger and relatively straightforward projects are often within the 3-4 range. Claiming incentives like tax credits and rebates can bring the PPW even lower.
However, the following factors may push your solar price per watt into the 4 to 5 range.
- Smaller system size
- Unusual roof material or layout
- Premium panel and inverter models
- Multiple arrays versus a single array
- Additonal work like panel box upgrades, trenching, or roof repair
How to calculate solar price per watt
Calculating the price per watt for a solar system is very straightforward — it’s simply the system cost divided by the number of watts in the system.
Price per watt (/W) allows for an apples-to-apples comparison of different solar quotes that may vary in total wattage, solar panel brands, etc.
Pro tip: It can helpful to know your solar price per watt before and after claiming the 30% tax credit.
Ultimately there are many factors that figure into the price per watt of a solar system, but the average cost is typically as low as 2.75 per watt. This price will vary if a project requires special adders like ground-mounting, a main panel upgrade, EV charger, etc.
| Solar Price Per Watt | Solar Price Per Kilowatt-Hour |
| GROSS system cost / Total system wattage | NET system cost / Total lifetime system production |
| Useful for comparing solar quotes against one another | Useful for comparing solar versus utility bill |
| Pertains to the POWER of a system | Pertains to the PRODUCTION of a system |
| Typically 3.00-4.00/watt | Typically 0.06-0.08/kWh |
Cost Per Kilowatt-Hour (kWh)
Another measure of the relative cost of solar energy is its price per kilowatt-hour (kWh). Whereas the price per watt considers the solar system’s size, the price per kWh shows the price of the solar system per unit of energy it produces over a given period of time.
Net cost of the system / lifetime output = cost per kilowatt hour
You may also see this referred to as levelized cost of energy (LCOE).
What is a kWh?
A kilowatt-hour is a unit of energy and is equivalent to consuming 1,000 watts – or 1 kilowatt – of power over one hour. For reference, an energy efficient clothes dryer uses around 2 kWh of electricity per load, while central air conditioning uses around 3 kWh per hour.
While price per watt is most helpful comparing the relative costs of solar bids, solar energy cost per kWh is best used to illustrate the value of solar relative compared to buying your power from the electric utility.
For example, the average cost of a solar system purchased through solar.com is 6-8 cents per kWh, depending on the size of the system, type of equipment and local incentives.
Let’s compare that to grid electricity in major metro areas for April 2023 to the average cost per kWh of home solar energy:
| Grid electricity (cents/kWh) | Solar.com electricity (cents/kWh) | |
| New York City | 21.6 | 6-8 |
| Chicago | 18.0 | 6-8 |
| Miami | 16.8 | 6-8 |
| Houston | 15.2 | 6-8 |
| Denver | 15.2 | 6-8 |
| Los Angeles | 26.9 | 6-8 |
| Seattle | 12.7 | 6-8 |
Based on this prices, it costs around 43 cents to dry a load of laundry using grid electricity in New York and only 14 cents to dry a load using solar power.
How do I calculate the cost of solar panels?
There are a few ways to get a rough estimate for how much solar panels will cost without sitting through a sales pitch. These include:
- Online calculators
- Hand calculations based on your electricity usage
- The average cost of solar panels for comparable homes
Let’s start with the quickest method: online calculators.
Using a solar panel cost calculator
First, you can use an online solar cost calculator, like this one powered by solar.com. Simply punch in your address and your average monthly electricity bill, and the calculator will give you a side-by-side comparison of the cost of solar versus paying for utility electricity.
But before you use any solar panel cost calculator, it’s important to understand that there are dozens of variables that affect the cost of solar panels, and solar calculators work by making assumptions about those variables.
For example, your solar savings depends largely on how much utility rates increase over 25 years. Most calculators assume 3-5% annual inflation based on historical averages – but nobody can know for sure where will go over the next 25 years.
Solar savings is also geographically sensitive, since every state has different incentives, electricity rates, sun exposure, and net metering policies.
For example, a solar panel cost calculator for California would have drastically different assumptions than a cost calculator for New York.
How to calculate the cost of solar panels by hand
If you’d rather make your calculations offline, there are a few simple steps to estimate the cost of your solar system based on your electricity usage.
- Dig up some recent electricity bills (the more the better!)
- Average them together to get a baseline for your monthly electricity consumption
- Divide your monthly consumption by 30 to get your daily electricity consumption.
Once you have your average daily electricity use, follow the steps in the graphic below. Here are a few tips:
- You’ll have to assume the price per Watt (PPW) you can get from a local solar installer. This typically ranges between 3.50 and 5 before incentives
- Pro tip: Run the high and low PPW scenarios to get a range of solar costs
If hand calculations aren’t your thing, you can get a quick-and-dirty estimate based on the cost of solar for comparable homes.
How much do solar panels cost per square foot?
The third – and least accurate – way to get an idea of how much solar panels will cost for your home is to see how much solar panels cost for homes similar to yours.
Now, we absolutely encourage you to talk to friends, family, and neighbors that have installed solar systems to get a sense of the pros, cons, and cost. However, we’ve done a lot of that legwork for you.
We analyzed thousands of systems sold on solar.com in 2022 to find the average cost of solar panels for homes based on their square footage of living space and number of bedrooms.
On average, solar panels cost 8.77 per square foot of living space, after factoring in the 30% tax credit. However, the cost per square foot varies based on the size of the home.
For example, the post-tax credit cost of solar panels for a 2,500 square foot home is around 20,000 for a rate of 7.96 per square foot.
But how much do solar panels cost for a 1,500 square foot home? The average system cost only drops by 1,000 and the cost per square foot increases to 12.83.
| Square footage of living space | Solar cost per square foot (after tax credit) |
| 1,500 | 12.83 |
| 2,000 | 10.23 |
| 2,500 | 7.96 |
| 3,000 | 7.02 |
| 3,500 | 5.79 |
| Average | 8.77 |
Based on systems purchased on solar.com in 2022. Square footage per Zillow.
If you don’t know your home’s square footage, you can either look it up on Zillow or get a rough estimate using the number of bedrooms.
What’s the cost of solar panels for a 3-bedroom house?
The average pre-incentive cost of home solar is 29,161 for a three-bedroom house, or 20,412 after applying the 30% tax credit.
However, as shown in the chart below, the number of bedrooms isn’t a great indicator of the size and cost of a solar system – and neither is living space, for that matter.
Solar systems are typically sized based on electricity consumption – not square footage or number of bedrooms. That’s because a two-bedroom house with two EVs and an electric heat pump would likely use more electricity than a four-bedroom house with no EVs and gas heating.
So, you can use this method to get in the right ballpark, but keep in mind that the previous two methods are more accurate.
Once you have a rough cost estimate for your solar system, it’s time to compare it to the cost of buying electricity from a utility provider to get a sense of how much you can save by going solar.
Do you really save money with solar panels?
Yes, homeowners across the US can save money on energy costs by powering their home with solar panels instead of purchasing electricity from a utility. This is especially true following the Rapid rise in grid electricity rates in 2022.
Home solar is essentially a way to buy electricity in bulk – similar to buying a giant can of coffee grounds from Costco instead of 50 individual cups at Starbucks. The 25 can of grounds costs more upfront but pays for itself after just 9 Grande Lattes at 3 each and nets 125 in savings over its lifespan.
It’s the same concept with home solar, just on a much larger scale.
How much money do you save a month with solar panels?
Exactly how much money you save a month with solar panels depends on a few main ingredients:
- Utility electricity rates
- Electricity consumption
- How you finance your system
- Your energy goals
These factors vary from household to household, so let’s take a look at the average monthly electric bill with solar panels and without solar panels.
- By paying cash for a solar system, you can enjoy maximum lifetime savings – often north of 50,000 – but it can take several years to reach a payback period
- By taking out a solar loan, you can front-load your cost savings by making solar loan payments that are less than your average electricity bill, but interest payments eat into your lifetime savings
Adjusting the size of your solar system and how you finance it gives you control over your essential electricity costs – something you’ll never have by purchasing electricity solely through a utility company.
How long does it take for solar panels to pay for themselves?
The payback period for solar panels is typically 6-11 years, depending on factors like your utility rate, electricity consumption, and how you financed the system.
With a solar loan, many homeowners are able to achieve “Day 1” savings by having a loan payment that’s lower than their average electricity bill. However, interest payments on the loan eat into the long-term energy cost savings.
By paying cash for solar, homeowners maximize their lifetime savings potential, but typically need to wait 6-11 years to recoup the upfront investment.
Is solar worth it financially?
As a hedge against energy inflation, home solar is considered a safe and steady investment with a rate of return similar to real estate and 401k. Remember, home solar allows you to replace your electricity costs with lower, more predictable monthly payments on your solar system.
Why is it financially beneficial to pay for solar rather than utility electricity?
The chart below shows the steady rise of utility electricity from 5 cents per kWh to 16.5 cents per kWh over the last 44 years.
For non-solar owners, this trend is a nightmare because it shows that utility rate hikes are about as certain as death and taxes. But if you have a home solar system, utility rate hikes are the fuel for your energy costs savings over the 25-year warrantied life of your solar system.
Home solar also acts as a time machine, of sorts. Instead of paying the current utility rate for electricity, the cost per kilowatt-hour of home solar is typically around 6-8 cents – roughly what utilities were charging 40 years ago.
So, are solar panels worth your money?
Solar panels are worth your money if you want to want to:
- Take control over your essential electricity costs
- Hedge against energy inflation
- Reduce your carbon emissions
- Increase your home value
- Provide backup power for grid outages (when paired with battery)
However, if you have a hunch that grid electricity are suddenly going to plummet below 8 cents per kWh and stay there for 25 years, then don’t buy solar panels.
How much does solar panel installation cost?
Installation labor accounts for around 5.5% of the total cost of a residential solar project, according to a 2022 report from the National Renewable Energy Laboratory.
That amounts to 1,375 for a 25,000 solar project.
This figure often seems surprisingly low to homeowners that are used to labor being a bigger chunk of the cost for car repairs, landscaping work, and other home upgrades.
It’s worth noting that installation costs vary from project to project based on the local minimum wage and scope of the project. For example, labor for specialized electrical work typically costs more than general labor for panel installation. This variability is why it’s tough to find a solar installation cost estimator online.
Overall, labor costs have fallen in the last decade as technology has improved and the labor force has matured. The chart below shows the solar panel installation cost breakdown since 2010.
- The overall cost of residential solar fell by 64% in the 2010’s
- Solar module, inverter, and labor costs have come down substantially in the last decade
- Non-labor soft costs and electrical hardware have been more stubborn
At the end of the day, the installation labor makes up a very small chunk of the total cost of a solar system – and it’s well worth having professionals install a system that you want to last for 25 years or more.
Can I install solar panels myself?
Some homeowners with advanced knowledge and experience in construction, circuitry, and local permitting guidelines (not to mention a good amount of time on their hands) are able to successful install solar panels up to inspection and interconnection standards.
However, it’s important to consider that DIY solar installation may void the manufacturer warranties on the equipment and does come with workmanship warranties.
So, if there are problems with the equipment or the installation, like a panel broken during installation or a leaky hole in the roof, you are on your own to solve and pay for them.
It’s also worth noting that full-service installers typically handle permitting, interconnection, and applying for incentives — which can be complicated and time consuming.
How much does one solar panel cost?
The average cost for one 400W solar panel is between 250 and 360 when it’s installed as part of a rooftop solar array. This boils down to 0.625 to 0.72 per Watt for panels purchased through a full-service solar company.
At a retail vendor, such as Home Depot, you can buy a single 100W solar panel for 100 or a pack of 10 320W solar panels for 2,659, which boils down to 0.83 to 1 per Watt.
Given the relationships with panel manufacturers, full-service solar companies are able to offer a much lower cost per solar panel than retail establishments.
How long do solar panels last?
Today’s solar panels typically have 25-30 year performance warranties that guarantee a certain level of production (usually 85-92% of its Day 1 capacity) during that time. However, the panels themselves can last and generate a meaningful amount of electricity for much longer.
For example, the first modern solar cells were created in 1954 and are still producing power from their display case in a museum. Similarly, a solar panel installed in 1980 on a rooftop in Vermont is still producing at 92% of its original capacity.
Based on manufacturer warranties, it’s safe to assume today’s solar panels will produce at a high level for at least 25-30 years. The real question is how far will they overshoot that warrantied lifespan.
How can I lower the cost of solar panels?
Although home solar is already more affordable than paying for utility electricity, there are a few ways to reduce the cost of your system and maximize your energy cost savings.
Solar incentives
First, there are solar incentives offered by federal, state, and local governments, in addition to utility providers.
The most notable is the federal solar tax credit worth 30% of what you pay for solar panels. So, if your all-in cost is 25,000, you can claim a tax credit worth 7,500 on your federal income tax return for the year your system was deemed operational.
Next, many states have additional incentives like tax credits, tax exemptions, and rebates for residential solar systems. For example, New York has all three with its NYSERDA rebate, 25% state tax credit, and sales and property tax exemptions for solar installations.
At the local level, many city governments, municipal utilities, and investor-owned utilities have incentives for solar panels, battery storage, and other energy efficiency home upgrades.
- The Austin Energy solar rebate worth 2,500
- California’s Self-Generation Incentive Program with battery rebates up to 1,000 per kWh of capacity
- Massachusetts’ handful of municipal utility rebates
It’s well worth spending 5-10 minutes searching for solar incentives through your state, county, city, and utility provider.
Compare multiple quotes
The next way to reduce the cost of solar panels is to shop for the lowest price like you would for cars or a new pair of hiking boots.
In most areas of the US, there are at least a handful of solar installers willing to compete for your business. Getting quotes from at least three reputable installers gives you a sense of a fair price, weeds out scammers, and gives you leverage to negotiate for a lower price.
Admittedly, it takes time and effort to research installers, set appointments, and sit through sales pitches in order to gather quotes. Solar.com simplifies this process by instantly generating dozens of quotes from our network of trusted installers so you can easily compare quotes in a pressure-free environment.
However you choose to do it, comparing multiple quotes is crucial to lowering your solar cost and setting yourself up for a long-lasting and productive solar installation.
Can I get free solar panels?
Despite what the ads on and YouTube say, it is not possible to get free solar panels from Tesla, Home Depot, or the US government. This is a common scam used to gather personal data and/or trick people into signing long-term solar lease agreements that are far less favorable than owning solar panels.
For example, in February 2023, a page called “Solar Panel Rate” ran multiple ads claiming Elon Musk was paying homeowners 2,500 to test out new solar technology. Further inspection revealed that the account was run by three individuals in Indonesia and the ads were designed to collect personal information.
There are also dozens of YouTube ads claiming that the “US government is giving away free solar panels.” While it’s true that the federal government strengthened the solar tax credit and created new home electrification incentives by passing the Inflation Reduction Act, it is not “giving away” solar panels.
Recap
The falling cost of solar panels coupled with the recent spike in grid electricity have made home solar a reliable means of reducing your essential energy costs.
While the five-figure price tag for home solar often gives people sticker shock, it’s important to remember that going solar is like buying 25-years worth of electricity in bulk. It may cost more upfront, but it is much more affordable than buying electricity at the retail rate from a utility.
Plus, there are zero-down solar loans that can spread out the cost of solar panels and, in many cases, provide instant energy cost savings.
Installation accounts for roughly 5.5% of the total cost of solar projects. However, non-labor soft costs like permitting, inspection, interconnection, and general overhead makeup around half of the cost of home solar.
There are a few ways to reduce the cost of going solar. First, research federal, state, and local solar incentives to make sure you’re not leaving money on the table. Second, shop around for the best price by getting multiple quotes from vetted local installers. (Solar.com makes this quick, easy, and pressure-free).
Finally, neither Elon Musk nor the US government are giving away free solar panels. And if they were, they wouldn’t be advertising it on and YouTube.
Steer clear of free solar ads to avoid giving away personal information or ending up in a long-term solar lease.
Frequently asked questions
Is one solar panel enough to power a house?
One solar panel is not enough to power a house. Home solar systems typically feature 10-20 panels in order to produce enough power to offset 100% of the average household electricity consumption.
It’s also worth mentioning that installing one solar panel at a time isn’t very efficient, as there are soft costs associated with designing, permitting, inspecting, and interconnecting solar systems. Homeowners typically get the most bang-for-their-buck by installing at once as many solar panels as they’ll need to offset current and near-future electricity needs.
How long can a house run on solar power alone?
According to the NREL, a small solar system with 10 kWh of battery storage can power the essential electrical systems of a home for three days in parts of the US and in most months of the year.
Essential electrical systems do not include electric heating or air conditioning, which require massive amounts of electricity.
However, it’s worth noting that solar systems need to be paired with battery storage in order to provide backup power during outages. Solar-only systems are automatically shut off during outages as a safety precaution to protect the technicians repairing the grid.
What is the main downside of solar energy?
The main downside of solar energy is that it’s intermittent. In other words, solar panels need sunlight to produce electricity, and when the sun goes down production stops.
This intermittence poses challenges to grid operators because it creates an influx of energy during the middle of the day, when consumption is down, and a lack of energy in the evening, when consumption is peaking.
The most obvious solution to this challenge is various forms of energy storage including batteries, pumped hydro, compressed air, and thermal technologies.
In fact, residential solar and battery systems in California provided around 340 MW of power during a heatwave in September 2022 to help prevent power outages.
Is it worth it to get solar panels in California?
Given its abundant sunshine and high utility electricity rates, California is one of the best states to save money with home solar.
In fact, even after reducing the value of solar exports through NEM 3.0 solar billing, Californian’s can still save more money with solar than homeowners in most other states. Under NEM 3.0, it’s much more beneficial to pair solar systems with battery storage in order to use as much of your own solar production as possible instead of exporting it onto the grid.
Many installers are offering less expensive “arbitrage” battery systems that allow solar owners to store and use their own electricity, but don’t provide backup power during outages (hence the price decrease).
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