The Cost to Remove and Reinstall Solar Panels
In most cases, a solar energy system is a set-and-forget cost-savings solution that is expected to last 30 years. But there are some maintenance costs that you need to be aware of. Removing and reinstalling your panels is one of those potential costs.
With solar panel warranties of 25 to 30 years and a usable lifespan of well over 30 years, it is possible that you will need to remove the panels to patch a portion of your roof or install an entirely new roof.
This blog provides ballpark estimates for what you can expect to pay if you need to have your solar panels removed and reinstalled; along with the process and other important things to consider before getting started.
Pro Tip: To lessen the likelihood of removing and replacing solar panels, we recommend only installing systems on roofs that are in good condition and in the early part of their life. A good rule of thumb is to not install solar panels on a roof that has a shorter lifespan than the payback period of the solar system. So you should not install a system with a 10-year payback on a roof that only has 8 years remaining in its usable life.
The process for removing and reinstalling solar panels
The process is simple. After you’ve selected a trained professional, they will come to your property to safely de-energize your system. Then they will get to work removing the panels, racking/mounting hardware, and any wiring that’s on the roof. This will be stripped down to a point that will keep your property safe as well as make it as easy as possible to reinstall. Ask the team removing the panels to fill any roof penetrations left behind from lag bolts or screws with some type of roofer’s cement. This will help prevent moisture intrusion before your roofers arrive.
After the roof repair is complete, the solar installers will return as soon as possible to reinstall the racking, wiring, and panels. Your system will then be reenergized after the system is once again in a safe working condition.
How long does it take to remove and reinstall solar panels?
The longer it takes to complete this process the more energy production and electric savings you will miss out on, so it’s important that this process move as quickly as possible. You will want to make sure all the details are in place with both your solar installer and the roofing company to make sure downtime is limited.
For a general rule of thumb, most residential systems (5-20kW) installed on asphalt shingles will require 1 day for the panels and racking to be removed. Then 2-3 days will be needed to reinstall the panels and racking after your roof is repaired.
Commercial projects will take more time. A 50 to 100 kW system could require 3-5 days for panel and racking removal. Then after the roof is repaired, another 8-10 days will be needed to reinstall the panels. This is also dependent on the type of roof and conditions at the site. For example, different amounts of time will be needed for a standing seam roof versus a flat roof.
Can you reuse the same equipment when reinstalling solar panels?
In most cases, we will be able to reuse your existing equipment. There may be some components that we are not able to reuse, but the main components, panels, and racking will be reused.
This is a big reason to hire trained professionals to complete the removal and reinstall for you. We recommend first contacting the company that installed your project. They will be the most familiar with your system’s design. The second option is to select another highly qualified company in your area.
Do-it-Yourself (DIY) solar panel removal and reinstallation may be an option for a qualified and trained person, but we highly recommend not doing this because of the many risks it presents. First of all, unhooking and reconnecting solar equipment is a safety hazard for anyone that hasn’t received the proper training. Also, the equipment can be damaged if not handled properly. This could void your warranties with the equipment manufacturer and your installer, which could end up being costly down the road.
Things to consider before removing solar panels from your roof
After the panels are removed from your roof, you will need a place to store them. In some cases, the panels will be okay stored outside, but only if they are in an area protected from the wind and rain. When solar panels are disconnected, the electrical connectors on the back of the panel are at risk of having moisture get inside of them. Moisture inside the connectors will cause panel failure down the road.
We recommend that you store your panels in an indoor location such as your garage, garden shed, or warehouse for businesses. However, you will want to make sure they are in a secure location to avoid unwanted access or theft.
Another thing to consider is some components of your system could be damaged. Selecting the right company to remove your panels is important, but mistakes still happen. This could add unexpected costs.
Make sure your roofing company is aware of your solar system and willing to offer a roof product that has a warranty that’s not impacted by the installation of solar panels.
Solar Panel Removal Reinstallation Costs for 2022
Based on the average cost of projects we’ve completed in the last year, you can expect to pay roughly 300 per panel for the removal and reinstallation of a roof-mounted solar system. This means if your system has 15 panels, the estimated cost to complete the removal and reinstallation will be 4,500.
However, this price will change based on several factors. The main factors that will impact the price are:
- Travel time for our crew
- The number of roof faces your panels are installed on
- The height and pitch of your roof
- The roof type. shingles, rubber, metal, etc
Keeping the process as smooth and quick as possible is best for your bottom line. The longer your system is de-energized the more savings you’re missing out on. Make sure the companies you select have a plan to keep your project moving until completed.
Are you looking for a quote to remove and reinstall your solar panels? If you’re located in the mid-Atlantic region our team of highly trained solar professionals is ready to help. Contact our maintenance team to get started.
How Much Do Solar Panels Cost?
Saving money is Smart. Going solar is a Smart investment. Everyone asks about cost, but if your goal is to maximize how much you make from your investment, then the most important questions are “how much money will you save each month on electric bills?” and “how quickly does your solar system pay for itself?”
To calculate that payback period, you need to account for factors like the quality of your solar system, how much sun reaches your solar panels, whether you lease or own the system, the cost per watt, available tax credits, and quite a few more. Reputable solar providers can calculate those factors to show you how quickly your system will pay for itself in electric bill savings.
But understandably, you want to know how much it will cost to put a solar system on your roof. Below we’ll break down cost and some of the other major factors that you should consider.
Estimating how much home solar panels cost in 2021
One of the first questions someone interested in home solar asks is, How much do solar panels cost? It’s important to know there is not a one-size-fits-all answer because every home is different, and there are many geographic variables and federal and local tax incentives to consider.
The easiest thing to do is to contact a professional solar installer. The installer will give you a free evaluation that entails looking at your electricity bill to find out how many kilowatt hours of electricity your household typically uses and evaluating your roof and shading, to determine how many panels you’ll need. That, combined with local solar incentives your community may offer and the federal solar tax credit, will give you a full picture of how much your home solar system will cost. The good news is that no matter where you live, the cost of solar panels is coming down.
We look at the price per watt when figuring out the cost of your system, but you may find it more useful to think about the price of leasing a solar system separately from the price to own one. That’s because with a lease it’s important to think about how much you can save for each month of the lease, but when you own the system it’s more important to understand how quickly it can pay for itself.
What is the cost of individual solar panels?
Very few people are going to buy just the solar panels themselves, just like few people would buy the components of a car and build their own vehicle. We recommend you use a SunPower-approved installer for your solar system.
Yes, it’s possible to buy a single solar panel for as little as 100, but a solar panel does not operate in isolation. You need a system of hardware and software to generate electricity from the sun, including solar panels, an inverter, mounting hardware, wires and cables., It is also beneficial to have a monitoring system that tracks the production, energy use and savings of your system. And you need to consider the cost of installation and operation.
Once you get an estimate for the cost of your solar system, you should subtract the potential savings on your utility bill over time, including any incentives offered by your local or state governments. Then you’ll have a better understanding of how going solar will impact your finances.
What are the factors that affect solar panels?
The cost of a home solar system can vary, even in the same city, due to a range of factors, including the:
- Quality of the solar system
- Household’s energy needs
- Local weather
- Available roof space and shading
- Financing options selected (cash, loan, or lease)
To help you understand the price of going solar in your area, we’ve analyzed SunPower price quotes, as well as quotes gathered by third-party sources for thousands of homeowners across the country.
We found that the cost of installing a 5 kW solar system in the U.S. ranges from 11,150 to 46,100, or in other words, from 2.23 to 9.22 per watt. And that’s before considering the benefits of any available tax credits or incentives.
The chart below shows the average cost of a 5 kW home solar system in each U.S. state.
How do I know how much sun my roof gets?
The more direct sunlight your home receives, the more power the panels can produce. But there’s a little more to it than just sunlight. To see if your house is a good candidate for solar, try out a solar panel suitability checker such as Google’s Project Sunroof. Then set up an appointment for a solar consultation with an expert who’ll visit your home to inspect its orientation (solar panels facing south capture more energy), roof angle and tree shading to see if your roof will receive enough sunlight to meet your family’s electricity needs. SunPower’s solar consultations are free, online or in-person, and you can learn more about your home electricity needs and savings options.
SunPower panels are proven to be the most efficient on the market —not to mentioned unmatched at generating power in low-light situations—but, excessive shading will reduce the amount of power that can be generated.
It’s also important to know a SunPower Equinox ® solar solution has unique, factory-integrated microinverters in each panel. Meaning, if one panel isn’t producing energy because of shade, neighboring panels receiving more sunlight can still generate solar energy for your home.
What are the most efficient solar panels?
Remember that the adage, “You get what you pay for,” applies to home solar technology. Not all solar systems are alike. The quality of the technology matters in the long run. The durability, reliability and efficiency of solar panels can vary widely by manufacturer. If you settle for a conventional home solar system that might cost less out-of-, you can expect to see average (or below average) results and less savings over time. Watch these videos about the lifespan of SunPower® solar panels and their durability and reliability.
In short, SunPower panels are the most efficient home solar panels you can buy. A higher quality panel like SunPower’s might cost a little more upfront, but you’ll see a higher—and quicker—return on your investment in the long run. Our panels come with a 25-year Complete Confidence warranty and have an expected useful life of 40 years. And since they’re more efficient than other panels on the market, you’ll need fewer of them on your roof. Our panels produce up to 55% more energy in the same space over 25-years than conventional panels, ultimately saving you more money on your electric bill.
Industry measurements such as the Fraunhofer Center for Sustainable Energy Systems’ PV Durability Initiative can give you a better idea of a solar panel’s expected lifespan—a factor that can have a tremendous impact on the system’s lifetime value.
The superior efficiency and durability of high-quality panels can provide increased savings over time and lower maintenance costs. You can get a personalized SunPower solar savings estimate using our solar calculator, which lets you factor in variables like buying solar storage and/or having an electric vehicle.
What solar incentives or solar rebates are available?
There are many different tax incentives, subsidies and financing and billing solutions at the state and local levels that can make going solar more affordable. To see if you might be eligible for renewable energy incentive programs, visit the Database of State Incentives for Renewables Efficiency (DSIRE®).
If you purchase your solar system, you may qualify for the 26% federal tax credit (ITC). The full solar ITC is available to home solar owners through 2022. It drops to a 22% credit in 2023 and is scheduled to go away completely in 2024, so don’t put off buying solar for too long.
Get a solar estimate
Ultimately, the easiest way to answer the “How much does solar cost” question is to give our solar advisors a call at 844-578-6793. They’ll help you get a free estimate for your home. Or you can contact a solar installer in your area directly. Get more tips on Choosing a Home Solar Installation Company.
When you’re getting solar estimates, be sure to ask about the technology the installer intends to use, their hardware, their monitoring software, their past installations and their maintenance plans. It’s especially important to ask about their warranty.
Most solar companies offer multiple, separate warranties for each component on a solar system, and there can be hidden fees like shipping fees when replacing a broken panel. With SunPower Complete Confidence Warranty, one company backs your entire solar system, including battery storage and monitoring.
Ready to get started? Enter your address into our solar savings calculator to find out how much you can save with the world’s best solar.
- . Tax credits are subject to change. SunPower does not warrant, guarantee or otherwise advise its customers about specific tax outcomes. Consult your tax advisor regarding the solar tax credit and how it applies to your specific circumstances. Visit dsireusa.org for detailed solar policy information.
- . Local Solar Installers 2020/2021, Solar Reviews 2021, Energy Sage 2021, Wood Mackenzie 2020, National Renewable Energy Laboratory 2020
- . Based on survey of datasheet values from websites of top 20 manufacturers per IHS, as of June 2020.
- . Based on survey of datasheet values from websites of top 20 manufacturers per IHS, as of June 2020.
- . SunPower Module 40-year Useful Life. SunPower whitepaper. 2013.
- . SunPower 400 W, 22.6% efficient, compared to a Conventional Panel on same-sized arrays (280 W multi, 17% efficient, approx. 1.64 m²), 8% more energy per watt (based on PVSim runs for avg US climate), 0.5%/yr slower degradation rate (Jordan, et. al. Robust PV Degradation Methodology and Application. PVSC 2018).
- . Tax credits are subject to change. SunPower does not warrant, guarantee or otherwise advise its customers about specific tax outcomes. Consult your tax advisor regarding the solar tax credit and how it applies to your specific circumstances. Visit dsireusa.org for detailed solar policy information.
The Cost of Solar Panels: Is It Worth It?
Do the benefits of solar panels outweigh their costs?
Nathaniel Riley brings 28 years of experience in financial services, including merger-arbitrage trading, hedge funds, and alternative investments.
Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in the accounting and finance industries for more than 20 years. Her expertise covers a wide range of accounting, corporate finance, taxes, lending, and personal finance areas.
Skylar Clarine is a fact-checker and expert in personal finance with a range of experience including veterinary technology and film studies.
What Is Solar Power for the Home?
Homeowners who install solar power systems can receive numerous benefits: lower electric bills, lower carbon footprints, and potentially higher home values. But these benefits typically come with significant installation and maintenance costs and the magnitude of the gains can vary widely from one house to another.
This article will help homeowners make the financial calculations required to determine the viability of solar power in their homes.
Key Takeaways
- Those seeking to go green may want to consider equipping their home with solar panels.
- Not only is solar power good for the environment, but you can earn money selling back excess power to the grid.
- While costs have come down over the past years, installation and maintenance of solar panels can be quite expensive.
- Solar panels are best suited for homes that receive ample sun exposure throughout the year.
- Before committing to solar power, be sure to understand both the social and economic factors.
Understanding Solar Power
In principle, working out whether it makes financial sense to install solar power for your home is simple. You will need to calculate:
- The cost of a solar power system
- How much energy it will produce
- What you would otherwise pay for the same amount of energy
- How many years it will take for your upfront investment to pay for itself in saved energy costs
- Whether the system will pay for itself in five years
If it does and you have the upfront capital, it’s probably a great idea. If you’ll have to wait longer for savings or take out a loan to afford the system, you’ll need to think the decision through carefully.
In practice, however, things are not this simple. There is a large variation in each of these factors, and that can make the costs and benefits of installing solar power for two homes—even if they are neighbors—radically different.
There are some tools that can help, though. Solar Reviews offer a calculator that will quickly provide you with representative costs and savings for a solar power system in every part of the U.S. Calculators like this are a good place to start if you are new to solar energy and want to understand the basic cost model.
In the rest of this article, we’ll take you through each of the key factors you should consider when calculating the costs and potential savings of solar power for your home.
Before getting solar panels, get quotes from several reputable installers to compare.
The Cost of Solar Power for Homeowners
First, let’s look at the cost of installing a solar power system for your home. The average, upfront cost of a residential solar power system is between 3,500 and 16,000.
Why the huge range of costs? Well, a lot of the variation depends on the size of the system you’d like to install and the type of panels you want to use. Whatever system you use, keep in mind that solar power is capital intensive and the main cost of owning a system comes upfront when buying the equipment. The solar module will almost certainly represent the largest single component of the overall expense.
There are some additional costs, as well. Other equipment necessary for installation includes an inverter (to turn the direct current produced by the panel into the alternating current used by household appliances), metering equipment (if it is necessary to see how much power is produced), and various housing components along with cables and wiring gear. Some homeowners also consider battery storage. Historically, batteries have been prohibitively expensive and unnecessary if the utility pays for excess electricity that is fed into the grid (see below). The installation labor cost must also be factored in.
In addition to installation costs, there are some further costs associated with operating and maintaining a PV solar array. Aside from cleaning the panels regularly, inverters and batteries (if installed) generally need replacement after several years of use.
Subsidies
While the above costs are relatively straightforward—often a solar installation company can quote a price for these for a homeowner—determining subsidies available from the government and/or your local utility can prove more of a challenge. Government incentives change often, but historically, the U.S. government has allowed a tax credit of up to 30% of the system’s cost.
details on incentive programs in the U.S., including programs within each state, can be found on the Database of State Incentives for Renewables Efficiency (DSIRE) website. In other countries, such information is often available on government or solar advocacy websites. Homeowners should also check with their local utility company to see whether it offers financial incentives for solar installation and to determine what its policy is for grid interconnection and for selling excess power into the grid.
97.7 gigawatts
The U.S. installed 19.2 gigawatts of solar PV capacity in 2020 to reach 97.7 GWdc of total installed capacity, enough to power 17.7 million American homes.
Calculating Your Energy Production
The second factor you’ll need to consider in your calculations is the amount of energy your system will produce and when it will do that. This can be a very complicated calculation to make, even for experienced solar engineers. However, let’s run through the basics.
One of the most important considerations is the solar irradiation levels available in the home’s geographical location; in other words, how sunny it is where you live. When it comes to using solar panels, being closer to the equator is generally better, but other factors must be considered. The National Renewable Energy Laboratory (NREL) produces maps for the U.S. showing solar irradiation levels and the tools on its website provide detailed solar information for specific locations within the U.S.
Equally important is your home’s orientation: For rooftop arrays, a south-facing roof without trees or other objects obstructing sunlight maximizes the available solar energy. If this is not available, panels can be mounted on external supports and installed away from the house, incurring additional costs for the extra hardware and cables.
And then you must factor in the size of your system. Solar panel size is quoted in terms of the theoretical electrical output potential in watts. However, the typical output realized for installed PV systems—known as the capacity factor—is between 15% and 30% of the theoretical output. A 3 kilowatt-hour (kWh) household system running at a 15% capacity factor would produce 3 kWh x 15% x 24 hr/day x 365 days/year = 3,942 kWh/year or roughly one-third of the typical electricity consumption of a U.S. household.
How Much Will You Save?
Once you know how much a solar power system will cost upfront, and how much energy it will produce, you can (theoretically) predict how much you can save in energy costs per year.
This is another tricky calculation, however, because a lot depends on how you pay for electricity at the moment. Utilities often charge residential consumers a flat rate for electricity, regardless of the time of consumption. This means that instead of offsetting the expensive cost of peak electricity production, homeowners’ solar power systems merely offset the price they are charged for electricity, which is much closer to the average cost of power production.
However, many utility companies in the U.S. have introduced pricing schemes that allow homeowners to be charged at different rates throughout the day in an attempt to mirror the actual cost of electricity production at different times: This means higher rates in the afternoon and lower rates at night. A PV solar array may be very beneficial in areas where this sort of time-varying rate is used since the solar power produced would offset the most costly electricity.
Exactly how beneficial this is for a given homeowner depends on the exact timing and magnitude of the rate changes under such a plan. Similarly, utilities in some locations have pricing schemes that vary over different times of the year due to regular seasonal demand fluctuations. Those with higher rates during the summer make solar power more valuable.
Some utilities have tiered pricing plans in which the marginal price of electricity changes as consumption rises. Under this type of plan, the benefit from a solar system can depend on the electricity use of the home; in certain areas subject to rates that increase dramatically as consumption increases, large homes (with large energy needs) may benefit most from solar arrays that offset high-cost marginal consumption.
For some homes, it might even be possible to make money by selling solar power back to the grid. In the U.S., this is done through net metering plans, in which residential consumers use the power that they put into the grid (when the rate of electricity generation from the solar array is greater than the rate of household electricity consumption) to offset the power consumed at other times; the monthly electric bill reflects net energy consumption. The specific net metering regulations and policies vary across regions. Homeowners can refer to the DSIRE database and should also contact their local utilities to find more specific information.
Calculating Solar Power Costs
At this point, you will be in a position to make a final calculation, and an assessment of whether solar power makes sense for you.
The overall cost and benefit of a solar system can theoretically be evaluated using the discounted cash flow (DCF) method. Outflows at the beginning of the project would consist of installation costs (net of subsidies) and inflows would arrive later in the form of offset electricity costs (both directly and through net metering).
However, rather than using DCF, the viability of solar power is usually evaluated by calculating the levelized cost of electricity (LCOE), then comparing it to the cost of electricity charged by the local utility. The LCOE for household solar will typically be calculated as cost/kilowatt-hour (/kWh or ¢/kWh)—the same format commonly used on electricity bills. To approximate the LCOE, one can use the following equation:
LCOE (/kWh) = Net Present Value (NPV) of the Lifetime Cost of Ownership / Lifetime Energy Output (kWh)
The useful life of a PV solar module is generally assumed to be 25 to 40 years. The cost of ownership includes the maintenance costs, which must be discounted to find the NPV. The LCOE can then be compared to the cost of electricity from a utility; remember, the relevant price is that which occurs during times at or near peak PV solar production.
Is Solar Power Worth It?
Once you’ve worked through all of these calculations, you’ll likely end up with a single number—the number of years it will take for a solar system to pay for itself in savings from your energy bills. If you live in a sunny part of the country and have high utility bills at the moment, you could be looking at a system that will reach this point in five years. Other homeowners may have to wait 10 or 20 years to reach this point.
In other words, most homeowners will eventually see a benefit from a solar power system; it might just take decades for this to be realized. Whether it is worth installing such a system therefore often comes down to a number of much less technical factors than those we’ve listed above: how long you are going to stay in your home, the subsidies available in your area, and simply whether you want to do your bit for the environment.
Pros and Cons of Solar Panels for Your Home
Like most things, solar power has its benefits and drawbacks. At the same time, some economic costs may be defrayed by the social benefits to the environment and lowering your carbon footprint, which may be more important to you than a purely monetary evaluation.
- Green energy that lowers your carbon footprint
- Net metering allows you to sell back excess energy produced
- You may be eligible for certain tax breaks
- Installation and maintenance costs are still high
- Solar only works when the sun is out
- Parts of the system need to be replaced every few years
- Some tax breaks may have expired or will be expiring
Can a House Run on Solar Power Alone?
Practically, it is not often possible. This is because solar only works when the sun is shining—when it is cloudy or nighttime, they do not generate electricity. There are some battery solutions to provide power during these times, but they still tend to be quite expensive. Most homes with solar panels still rely on the grid from time to time.
Do You Really Save Money With Solar Panels?
Depending on where you live, it is possible that the system can pay itself back and more over time. This is because you won’t be spending as much money buying electricity from your utility. If net metering is in place, you could reduce your bills even further.
How Much Does a Solar Panel Cost?
have been coming down steadily over the years. The total cost will depend on how many kilowatts of power your array will generate. According to consumer reports, after solar tax credits are accounted for, the cost for a solar panel system on an average-sized house in the U.S. in 2021 ranges from 11,000 to 15,000.
How Long Will It Take To Recoup the Initial Cost?
Depending on where you live and the size of your system it can take, on average, anywhere from 10 to 20 years to break even on a solar installation.
The Bottom Line
Determining whether to install a PV solar system may seem like a daunting task, but it is important to remember that such a system is a long-term investment. In many locations, solar power is a good choice from a financial perspective.
Even if the cost of solar power is found to be marginally more expensive than electricity purchased from a utility, homeowners may wish to install solar power to avoid future potential fluctuations in energy costs, or may simply wish to look beyond their personal financial motivations and use solar for green living.
What is the Average Cost of Solar Panels?
The average cost of solar panels as of Spring 2023 was 3.30 per watt, excluding financing. This price includes hard costs, like hardware and equipment, and soft costs, like installation labor and required permitting.
This cost data comes from a March 2023 Report by the Solar Energy Industries Association (SEIA) in partnership with Wood Mackenzie Power Renewables.
All that to say, there is no set price for a solar panel system, despite what the internet may say. In reality, your system price will be custom to your specific situation and will depend upon a variety of factors that each solar installation company accounts for a bit differently, including:
- Your energy usage and electricity bill
- System size and efficiency
- Solar panel make and model
- Your location within the U.S.
- Eligible tax credits, incentives, and solar rebates
- Local permitting and utility requirements
- Condition and layout of your roof
Now, we introduced lots of concepts in the first two paragraphs: price per watt, incentives, hard costs, soft costs. It can be a lot to take in. In the rest of this article, we’ll break down these ideas and key terms so you can understand them better. We’ll even provide you with an average savings amount per state so you can get a better sense of how much money you could potentially save on monthly costs should you make the decision to go solar.
If you’re ready to estimate your costs now, head on over to our solar panel cost calculator. Using proprietary Mapdwell technology, we analyze the solar potential of your specific roof to provide you with a preliminary system size recommendation, along with cost and savings estimates.
How Are Solar Energy Systems Typically Priced?
There are many ways solar companies share the price of solar panels. The three most popular include:
In our opinion, the most comprehensive method for pricing solar panels is the gross cost. Let’s explain why and then discuss each pricing model in detail.
Gross Cost
A lot of work goes into ensuring that you can safely turn on your solar power system–much more than simply attaching solar panels to your roof. The gross or total cost of solar panels will typically encompass everything you need to lawfully turn your system on before financial incentives, such as the Federal Solar Tax Credit, are applied.
Yes—that’s right. You cannot lawfully install or power on your system without getting permission from the “authority having jurisdictions” (AHJs) for your area, which are often government entities. Other entities requiring permission may include your local building department and utility company, though the specifics will vary by location. If your home is part of a homeowners association or HOA, there may be additional approvals required.
Other costs not often mentioned but necessary to the successful completion of your solar panel system include:
- System design and engineering
- Equipment and hardware (e.g. module, inverter, racking, and electrical wiring)
- Permitting and inspections
- Installation cost and labor
At Palmetto, our solar estimate factors in these costs so you can better understand what it takes to begin generating electricity with your solar panels.
Price Per Watt
While we prefer using gross cost as our metric, we cannot discount the importance of price per watt. Price Per Watt—or PPW—is based on the maximum power output of a solar energy system, and is shown as the dollar amount per watt of solar energy a system can produce.
Because solar panels vary in both size and efficiency, this allows homeowners to compare costs based on overall system performance, rather than the number of panels or square feet of roof space. PPW is calculated by taking the gross cost of a solar panel system and dividing it by the total wattage, or power capability, of that system.
How do you calculate the size of the solar system you’ll need? That will depend on your energy usage (which you can see on your electricity bill) and how much of that electricity you want to come from solar panels. This is called solar offset, or the percentage of your total energy needs that can be offset by the electricity your solar panels generate in optimal conditions.
Many homeowners target a 100% solar offset when selecting the right system size for their home. The ability to do this will depend on preference, roof specifications, and utility guidelines. To calculate yours, you can use our free solar design and savings estimator tool.
The difference between gross cost and PPW is that the former already factors in system size, while the latter does not. Using PPW, you’ll be able to measure the comparable value of several solar power system quotes that may differ in solar panel types, wattage, and more.
Price Per Panel
You might also see solar panel systems priced by the panel. This metric is often used to price DIY solar panel kits, which we may recommend for your RV or boat, but not for your home.
It’s true that panels do differ in price depending on their make, model, and efficiency. Higher efficiency panels will likely cost more; however, you will not need as many of those panels to generate the same amount of energy created by a larger system that uses cheaper, low-efficiency panels. You could even spend more on those lower efficiency panels because you need to buy more panels for the same amount of electricity.
We rarely see this metric used to price residential solar energy systems because it leaves a lot of valuable information out of the equation.
Understanding the Hard and Soft Costs of Solar
It’s important to understand that the price tag of solar almost always includes more than just the equipment costs. It includes the costs necessary to install and get your system online. Let’s go over hard costs and soft costs so you can better understand them.
Hard Costs of Solar
The hard costs of solar refer to the physical equipment of your solar panel system, including the following:
- Solar panels
- Solar inverter
- Electrical panel
- Mounting and racking
- Electrical equipment
These will vary by solar company, as not all installers offer the same equipment.
Soft Costs of Solar
The soft costs of solar include labor and time taken to make sure you have all the relevant permits and licenses needed to operate your system. This may include but is not limited to the following:
- Permitting fees
- Inspection fees
- Interconnection fees
- Sales taxes (if applicable)
- Supply chain costs
- Installation costs
- Customer acquisition costs
- Transactional fees
The benefit of choosing a solar installer like Palmetto is that we factor these services into the cost of our system. We work on behalf of our customers to make sure their installations meet strict quality standards and that their system receives the correct permits in order to lawfully operate.
What Does It Cost to Lease Solar Panels?
A solar lease is a financial arrangement where the company that installs your solar panel system retains ownership, and you pay a fixed monthly amount to use any electricity the solar panels produce. Leasing solar also helps you lower your utility bill, and is often ideal for homeowners who are on fixed incomes and/or may not be eligible for the solar tax credit.
With this arrangement, you typically don’t pay any upfront costs for the residential solar installation, and your costs are just the subsequent monthly rent. You’ll make that monthly payment for the duration of your lease, and the solar installer is fully responsible for installation and maintenance.
To learn more about solar leases, visit our article that compares leasing vs. buying solar panels.
How Much Do Solar Panels Save?
Because savings may vary by state, we’ve compiled a table of Palmetto customers’ median system size and median estimated total savings. We sorted the data by state, and forecasted savings based on a 25-year lifetime of the system, before breaking that down into monthly savings.
| Arizona | 9.6 | 10,779 | 35.93 |
| California | 6.715 | 64,403 | 214.68 |
| Colorado | 7.2 | 9,281 | 30.94 |
| Connecticut | 8.69 | 35,865 | 119.55 |
| Florida | 10.53 | 12,740 | 42.47 |
| Georgia | 6.48 | 6,753 | 22.51 |
| Illinois | 9.2 | 17,130 | 57.10 |
| Maryland | 7.6 | 7,794 | 25.98 |
| Massachusetts | 9.085 | 67,009 | 223.36 |
| Michigan | 5.6 | 6,114 | 20.38 |
| Missouri | 10.8 | 12,793 | 42.64 |
| Nevada | 8 | 19,321 | 64.40 |
| New Jersey | 8 | 30,856 | 102.85 |
| New Mexico | 8.4 | 36,465 | 121.55 |
| New York | 8.295 | 6,378 | 21.26 |
| North Carolina | 7.695 | 7,161 | 23.87 |
| Ohio | 8 | 9,029 | 30.10 |
| Pennsylvania | 8.91 | 13,529 | 45.10 |
| Rhode Island | 6.715 | 10,499 | 35.00 |
| South Caronlina | 7.695 | 13,680 | 45.60 |
| Texas | 10.125 | 17,518 | 58.39 |
| Virginia | 8.8 | 12,991 | 43.30 |
| Wisconsin | 6 | 10,804 | 36.01 |
Monthly savings figures are based on median estimated total savings over 25 years for recent Palmetto customers. Actual savings may vary. This information is current as of March 2023.
Calculate the Cost of Going Solar with Palmetto
Want to see how much you could save by installing solar panels on your home? Using Mapdwell technology, Palmetto has mapped the solar potential of more than half of all rooftops in the United States. To see what your roof could look like with solar panels, and to get a custom quote, use our free solar design tool and cost calculator. You can begin your journey toward a cleaner energy future today!