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How Much do Solar Panels Cost in Virginia. Solar for house cost

How Much do Solar Panels Cost in Virginia. Solar for house cost

    How Much do Solar Panels Cost in Virginia?

    Virginia’s electricity rates are the sixth highest in the nation. That means you could be paying more for electricity than 86% of the country.

    But you can do something about it. By installing solar, you’ll own the means of producing your own electricity, freeing you from the expensive and ever-increasing electricity rates.

    That said, solar energy costs money to install. And Virginia is a big state. Installing solar panels in the Shenandoah Valley will be a little different from installing solar in Virginia Beach.

    In this blog, we’ll break down how much solar panels cost in Virginia, and we’ll give insight into what it’s like to go solar in your region:

    much, solar, panels, cost, virginia

    The Average Cost of Solar Panels in Virginia

    One of the best ways to estimate how much solar will cost you is to relate it to your energy bill. That will give you a rough idea of your system’s size.

    Below, we’ve broken this information down into costs for homes and businesses. But for a general rule of thumb, a homeowner in Virginia can expect to pay between 20,000 and 45,000 before incentives. Businesses and farmers can expect to pay 100,000 to 500,000 for a solar panel system in Virginia.

    Cost to Install Solar Panels in Virginia for Homeowners

    This chart shows what solar costs, on average, are for Virginia homeowners. The cost after incentives includes the 30% solar tax credit.

    Average MonthlyElectric Bill Solar System Size Total Installed Cost (Before Incentives) Cost After Incentives
    60 5 kW 25,400 17,780
    120 10 kW 35,410 24,787
    180 15 kW 46,370 32,459

    Cost to Install Solar Panels in Virginia for Businesses

    Below are the average costs for roof-top solar systems for businesses and farms. The cost after incentives column includes the 30% tax credit and the 100% bonus depreciation savings.

    Average MonthlyElectric Bill Solar System Size Total Installed Cost (Before Incentives) Cost After Incentives
    600 50 kW 135,500 59,434
    1,200 100 kW 240,700 105,577
    2,400 200 kW 441,900 193,828

    Cost of Solar Power in Different Areas of Virginia

    Charlottesville

    Charlottesville and its surrounding communities have some of the sunniest weather in the state. With an average of 217 sunny days a year, your solar panels are going to churn out plenty of cost-free electricity.

    On top of that, the local government is there to support homes and businesses looking to go green. The city of Charlottesville offers a tax credit for qualifying solar systems. They also have some great resources on their website, including a map that shows how much sunshine each roof receives.

    Hampton Roads

    Home to Newport News, Virginia Beach, Norfolk, and more, the Hampton Roads region in Virginia is great for solar. With so many tourists flocking to these coastal cities for gorgeous beaches and bright sunshine, local homes and businesses alike can stand to benefit a great deal from solar. Doing so will also help reduce air pollution, keeping those famous ocean views clear and sunrises vibrant.

    Local governments are very supportive of installing solar as well. The County of Norfolk launched an initiative with SolSmart to make the solar permitting and planning process even easier. Newport News also has an online solar hub with tons of useful resources for learning about solar.

    Harrisonburg

    Tucked away in the gorgeous Shenandoah Valley, Harrisonburg is a solar hotspot in Virginia. The emissions-free electricity helps keep those sweeping mountain views clear and saves homeowners and businesses plenty of money.

    In April 2022, Harrisonburg partnered with Solarize Virginia. a non-profit committed to making the installation process easier and more affordable. This program provides a solar inspection and connects you with experienced, trusted experts in the area.

    Lynchburg

    The Lynchburg area gets some serious sunshine. With 222 sunny days on average, Madison Heights is tied for the state’s sunniest city. Timberlake is close behind, with an average of 221 annual days of sunshine. Pamplin City, Concord, and Brookneal all make the top 15.

    Your solar system in Lynchburg will have plenty of bright days to churn out free energy. Whether you’re looking to offset your business’s or farm’s operating costs or you’re looking to lower your home’s energy rates, solar may be a good option.

    Northern Virginia (NOVA)

    With cities like Alexandria, Falls Church, Fairfax, Manassas, and Manassas Park, NOVA has one of the highest costs of living in the country. One way to keep monthly costs under control is to install solar.

    Depending on your electricity needs and your system’s size, you could offset a huge portion of your monthly energy expenditure.

    Fairfax County allows residents to install systems up to 20 kW, and businesses to install systems up to 500 kW. They also offer some local incentives, including waived permitting fees and tax exemptions on top of the national incentives.

    For more information on installing solar in Fairfax County and Northern Virginia, check out the county’s solar information web page.

    Richmond

    Businesses and homes in the Greater Richmond region can gain quite a bit by installing a solar panel system. And through the region’s Solarize RVA campaign, getting the ball rolling on a project is even easier.

    They’re out to increase the speed at which Virginians adopt renewables and in doing so, offer a ton of resources to help you out in your project.

    Roanoke

    Roanoke, Salem, and their surrounding communities make up the largest region in Western Virginia. As a historic hub for transportation and a current transportation manufacturing powerhouse, businesses and homeowners alike stand to gain quite a bit when going solar.

    By generating cost-free electricity, they can offset their high electricity bills with renewable energy. It can also help cut down on air pollution, keeping those beautiful views of the Blue Ridge Mountains clear.

    In addition, the City of Roanoke initiated a campaign called Solarize Roanoke. which aims to make the solar installation process easier and more affordable. And in 2021, the program started to include options for solar batteries!

    Solar Incentives Available in Virginia

    One of the biggest factors in solar’s cost is the available incentives. Both federal and local Virginian governments offer incentives that cut solar’s installation costs, making paybacks even better.

    One of the most robust incentives is the 30% federal solar investment tax credit (ITC). This incentive is available to all those who pay federal taxes. You’ll get back 26% of what you spend on your solar energy system back through a tax credit.

    In addition to this tax credit, businesses can take advantage of 100% bonus depreciation. With this, you can push all the tax savings from the depreciation of the solar system to the year the system is placed into service.

    On a state level, there’s a solar property tax exemption. Installing solar can increase the value of your home, raising your property taxes. But in Virginia, your taxes won’t go up. That said, local municipalities have the option to forgo this exemption, so it may not be available everywhere.

    Virginia also requires their utility companies to offer net metering. This is a great solar-friendly program that helps you maximize your solar investment. You’ll upload that extra electricity to the utility grid with net metering. In exchange, you’ll get a “credit” for each kilowatt-hour of electricity. That credit can be exchanged for a kilowatt-hour from the utility at any time.

    Is Solar Energy A Good Investment in Virginia?

    The federal tax credit, accelerated depreciation, and net metering help to keep the payback period short, so you can save more with solar energy. And in addition to the money you’re saving, you’re also helping to reduce air pollution and your carbon footprint, which can go a long way in keeping Virginia beautiful.

    So while the cost to install solar panels in Virginia may seem high, the return on that investment is even higher. With a lifespan of at least 25 to 30 years (the length most quality solar panels are guaranteed for), your system will produce tens of thousands or even hundreds of thousands of dollars of free electricity. And with Virginia’s high rates, you can stand to save even more.

    If you’re ready to take advantage of those savings, the next step is to get a custom quote. Use the button below to get started.

    Solar Costs

    Energy from the sun is free. However, capturing and utilizing this free energy does have associated costs, such as installing and maintaining the equipment needed to harness the energy.

    Residential System Pricing

    Solar Thermal System Pricing

    Solar water heating systems generally produce the biggest economic return on investment. A typical residential solar water heating system sized for a family of four costs about 6,000 to 8,000.

    Solar Electric System Pricing

    The initial investment required to purchase a residential solar electric system can be significant. A turnkey system equipped to produce enough power for the average home can be as much as 30,000. 36,000, which is why most homeowners choose a solar electric system that is designed to offset only a portion of the home’s electrical energy consumption.

    An average home in Alabama consumes 1,200 kWh of electricity each month. A solar electric system rated at one kilowatt will produce approximately 100 kWh of electricity per month in Alabama, which means the average house would require an approximately 12-kilowatt (kW) system with battery back-up in order to meet 100% of the household electricity needs.

    Installing a solar electric system without batteries averages between 2,500 to 3,000 per kW. Therefore, the average homeowner would have to make an initial equipment investment of 30,000 to 36,000 for a 12-kW system. In Alabama, with electric costs averaging 0.125/kWh, the annual electric utility cost for the average homeowner would be 1,800.

    Without incentives, it would take over 20 years to get a return on the investment of a whole-house solar electric system.

    Tax Credits and Incentives

    For a typical household, the prospect of paying up to 100,000 for solar panels is prohibitive; however, incentives in the form of tax credits and low interest loans can help offset the cost. A 26% federal tax credit is currently available through December 2022 for installing a solar energy system.

    For Information

    Let us help you determine if installing a solar energy system is right for you. For more information about solar thermal and electric system opportunities at your home or business, contact our Products and Services Team Mon-Fri, 8:00 a.m. 5:00 p.m., at 1-800-990-2726.

    Solar Panel Cost in Tennessee (2023 Local Savings Guide)

    Here’s a quick look at the estimated cost of solar in Tennessee:

    • Average Cost Per Watt: 2.49
    • Cost of Average System: 22,111
    • Cost of Energy Without Solar: 49,568
    • Payback Period: 13 Years
    • Lifetime Savings of Going Solar: 19,688

    Average system size is calculated using data from the Energy Information Administration. This price is after tax credit. Payback period is calculated assuming the system is purchased in cash.

    Each product and or company featured here has been independently selected by the writer. You can learn more about our review methodology here. If you make a purchase using the links included, we may earn commission.

    Written by Karsten Neumeister

    Karsten is an editor and energy specialist focused on environmental, social and cultural development. His work has been shared by sources including NPR, the World Economic Forum, Marketwatch and the SEIA, and he is certified in ESG with the CFA Institute. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace. Learn About This Person

    Reviewed by Melissa Smith

    Melissa is an avid writer, scuba diver, backpacker and all-around outdoor enthusiast. She graduated from the University of Florida with degrees in journalism and sustainability studies. Before joining EcoWatch, Melissa worked as the managing editor of Scuba Diving magazine and the communications manager of The Ocean Agency, a nonprofit that’s featured in the Emmy award-winning documentary Chasing Coral. Learn About This Person

    Why You Can Trust EcoWatch

    Our content is created and advised by solar industry experts. giving you the information you need to make Smart decisions about solar for your home. No other site has access to the same data and insider information as EcoWatch, and you can rest assured our reviews and rankings are never affected by revenue or partnerships.

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    Cost of Solar Panels in Tennessee

    The average cost of solar panels in Tennessee is 2.49 per watt, which is significantly lower than the national average of 2.66 per watt. That means that it’s likely more affordable to install solar energy projects in Tennessee compared to most other states. Plus, solar panel have fallen 4% in Tennessee over the last five years and will likely keep falling as renewable energy alternatives become popular.

    Our data shows that the typical Tennessee homeowner installs a 12-kilowatt (kW) solar energy system. Plugging the figure above (2.49 per watt) into our solar calculator, we found the average homeowner can expect to pay about 29,880 for a 12-kW solar panel system in Tennessee. Note that this figure is before any solar tax credits are applied.

    Also, the numbers in this article are averages for the entire state of Tennessee. Solar panel costs may be different for residents who live in more populous cities, like Nashville or Memphis.

    Shine Solar, LLC

    Outstanding Regional Installer

    LightWave Solar

    Outstanding Local Installer

    Solar Panel System Installation Cost in Tennessee

    Based on the company you choose and the size of the solar system needed to power your home, we’ve estimated that the average solar panel installation in Tennessee would cost between 22,400 and 37,400. These figures drop to between 15,687 and 26,145 after applying the solar Investment Tax Credit (ITC), also known as the federal solar tax credit.

    The table below shows the average for a solar panel system in Tennessee before and after the 30% federal tax credit:

    Size of Solar Panel System Tennessee Solar Panel Cost Cost After Federal Tax Credit
    9 kW 22,410 15,687
    10 kW 24,900 17,430
    11 kW 27,390 19,173
    12 kW 29,880 20,916
    13 kW 32,370 22,659
    14 kW 34,860 24,402
    15 kW 37,350 26,145

    Interested to see our picks for the best solar companies in Tennessee that offer affordable, high-quality systems? Click here.

    What Determines the Cost of Solar Panels in Tennessee?

    The actual price you’ll pay for your solar panel system in Tennessee can vary quite a lot. Smaller or more efficient homes that require more modest systems might only require a 5 kW system, which would average around 8,892 after the federal tax credit is applied.

    On the other hand, a Tennessee home that has high energy needs could require a 15 kW system, which averages out to 26,145 after the ITC (investment tax credit) is applied.

    Below, we’ll discuss some of the more significant factors that can affect your solar system costs in Tennessee to give you a better idea of where your price will fall.

    Solar Equipment

    The type and size of your solar system will always be a major factor in determining your overall cost of going solar. In Tennessee, homeowners can expect around 207 sunny days per year, which is just a touch above the national average of 205 sunny days annually. Unlike in areas where sunlight is scarce homeowners in Tennessee don’t need the highest efficiency panels (which tend to be more expensive) so costs are a bit lower here than in other states.

    Tennessee does get its fair share of extreme weather including tropical storms, tropical cyclones (mostly residual effects), extreme thunderstorms and tornadoes. Many homeowners opt for solar batteries in an effort to avoid power outages, which are relatively common in the area. Solar batteries will provide power through blackouts, but they can add thousands or even tens of thousands of dollars to your solar equipment costs.

    Of course, the equipment brand you choose will have an impact on your cost as well. Tennessee homeowners have many choices of solar brands, including top-tier options like SunPower/Maxeon and Panasonic that are more costly and lower-tier, less expensive options like Canadian Solar and Silfab. Given the abundance of sunlight in Tennessee, choosing less-costly panels with lower efficiency is an easy way to save money on your installation.

    Solar Financing in Tennessee

    How you pay for your solar system will affect your up-front and overall costs. If you choose to pay in cash, you’ll lay out the most up-front but will have the least total cost long term because you’ll avoid paying interest. Most homeowners opt for solar loans, though, and the options you’ll have for financing can also have an impact on your cost of going solar.

    Since solar power is still a budding industry in Tennessee, there are few state-funded financing options available and relatively few financing incentives offered. However, residents have access to the Tennessee Department of Environment and Conservation’s (TDEC) Clean Energy Financing. This program helps promote solar financing options and makes them more affordable for Tennessee homeowners.

    The Rural Energy for America Program (REAP) is also available, but only for businesses and agricultural producers.

    Tennessee Solar Installation Company

    Every solar installation company can upcharge for equipment and will typically have company-specific pricing for the labor involved in installing your solar equipment, so companies installing the same panels and/or solar batteries can charge different prices. According to the Solar Energy Industries Association, there are 41 solar installers in Tennessee, and which you choose will affect your cost of going solar.

    Some of the top solar installers in Tennessee include Shine Solar LLC, LightWave Solar, SunPower, Greene Tech Renewable Energy and ADT Solar. Opting for a local company like Greene Tech or LightWave will generally be more expensive, as smaller companies are less likely to buy equipment in bulk and pass the savings on to you. However, they sometimes offer discounts to compete with large companies like SunPower, Shine Solar and ADT.

    The panel brands offered by your solar installer also matter. For example, SunPower only installs panels from its sister company, Maxeon. These panels are considered the best and most efficient in the industry, but they come at above-average in Tennessee. LightWave Solar, a company local to Tennessee, carries multiple brands including LG, Tesla, SunPower and SolarEdge. You can choose more affordable panels through this company to match your power needs and your budget.

    Additional Considerations and Costs

    There are some other minor factors in Tennessee that can influence your total solar system cost as well, and while these will have less of an impact on your costs, you should consider them before committing to installing solar. We’ll discuss each of these briefly below.

    • Permits: All states and municipalities have their own laws governing solar panel permits. For example, laws restrict ground-mounted panels in flood zones throughout Tennessee, mandate building permits and inspections by the building department in your town or city and require that systems conform to all local zoning codes — although much of Tennessee doesn’t have specific zoning codes for properties.
    • Licenses: The State of Tennessee requires that all solar contractors and installation companies be properly licensed by the Tennessee Department of Commerce Insurance. While this doesn’t represent a cost to you, it can drive up the overall price of hiring contractors as more restrictions and fees add to their costs.
    • Warranties: Most solar panel systems come with warranties, which is great news considering you’ll be spending thousands on your equipment. Generally speaking, longer and more comprehensive warranties like the one from SunPower are better, although better warranty coverage tends to mean slightly higher prices.
    • HOAs: Some states have laws that prevent homeowners’ associations from denying solar panel installations. Unfortunately, the current legislation in Tennessee doesn’t guarantee homeowners the right to install solar, so stubborn HOAs can deny your request.
    • Environmental zoning: Tennessee does have some zoning ordinances that could prevent you from installing solar panels. However, zoning regulations are relatively lax in Tennessee, so few homeowners should have any issue at all with environmental zoning.

    Tennessee Solar Incentives

    Tennessee is not one of the top states for solar. but solar panels are becoming increasingly popular in the state. It could be because residents are seeking energy independence from utility companies, or perhaps they’re interested in lowering their utility bills.

    Whatever your reason for making the switch to clean energy alternatives, we want you to get the maximum reward. Unfortunately, Tennessee doesn’t have a ton of great state incentives for going solar, but we’ve outlined some of the financial incentives available below:

    Tennessee Solar Incentive How it Affects the Cost of Solar Panels in Tennessee
    Green Energy Property Tax Assessment A special “ad valorem property tax assessment” for green energy producers. It’s not quite a tax exemption, but rather a fancy way of saying there’s a limit to how much property tax can be placed on a residential solar photovoltaic system. That limit is 12.5% of the total cost of the system.
    Net Metering in Tennessee Tennessee does not offer statewide net metering and does not have standardized interconnection rules. The Tennessee Valley Authority (TVA) offered a dual-metering option for participants in its Green Power Providers program, but it looks like they’re not accepting any new applicants at the moment.
    Local Solar Rebates Incentives There are a handful of local utilities that offer energy efficiency rebates and solar companies are capable of carrying out those installations. For instance, the Knoxville Utilities Board offers 400 rebates for electric vehicle (EV) charger installations. Check out DSIRE to see if your utility offers any applicable incentives to your home solar system.
    Federal Solar Tax Credit The Solar Investment Tax Credit (ITC) is a tax incentive that allows solar adopters to claim 30% of their total solar equipment and installation costs as a tax credit on their next federal filing. The 30% credit is in effect for any solar project purchased through 2032. The tax credit is set to decrease to 26% in 2033 and 22% in 2034 before it disappears in 2035.
    Sales Tax Credit for Clean Energy Technology This is only for commercial solar installations. but it allows taxpayers to take a credit, to apply for a refund of taxes paid, or to apply for authority to make tax-exempt purchases for solar equipment in a certified green energy production facility.

    Best Solar Panel Brands and Installed Solar System Costs in 2023

    As mentioned above, the solar panel brand you choose can have a significant impact on your total system cost. Generally speaking, higher quality panels and those with higher levels of efficiency and better warranties will cost more on a per-watt basis, leading to higher overall costs. The table below provides some relative pricing for the top solar panel brands in Tennessee to give you a general idea of which brands are likely to fit your budget.

    Solar Panel Brand Average Cost Per Watt (-)
    LG Solar
    Canadian Solar
    JA Solar
    Mission Solar
    Panasonic
    Q Cells
    REC
    Silfab
    SunPower
    Tesla
    Trina Solar

    Ready to see what size system you need and how much it will cost? Check out our preferred solar providers in Tennessee below to get a free quote for your renewable energy system, with no obligation.

    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.

    much, solar, panels, cost, virginia

    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.

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    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.

    State Median System Size (kW) Median Estimated 25-Year Savings Equivalent 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!

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