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How Much Do Solar Panels Cost. Inverter installation cost

How Much Do Solar Panels Cost. Inverter installation cost

    How Much Do Solar Panels Cost?

    In this article, we attempt to answer that question to the best of our ability, but it’s important to remember that each solar system is a custom solution. The price can vary drastically from system to system.

    It’s also important to understand what goes into determining the cost of a solar energy system. We dive into those components first, then provide the average installation cost for commercial and residential solar panels.

    Factors that Impact the Cost of a Solar Panel Installation

    Type of Installation

    There are two main installation methods for solar: roof mounts and ground mounts. Roof mounts are attached to existing structures. Ground mounts and carports require additional posts that must be anchored into the ground. This often results in higher labor and component costs.

    Type of Equipment

    Solar Panels:

    There are two basic variables with solar panels: power density and color. Power density is the amount of power that a solar panel can produce per unit of size. For example, a solar panel that is the same size may produce between 300-400 watts, depending on the power density. Generally speaking, the more power-dense the panel, the higher cost per watt. Color is the other variable with solar panels. The basic panel has a blue cell, white back sheet, and silver frame. Modules with a black frame, black back sheet, or black cell are generally more expensive.

    Solar Inverters:

    There are three types of solar inverters: String, Micro, and Power Optimizers.

    String Inverters link p anels together in one or more groups. Each group feeds into one string inverter, feeding several panels into one inverter. String inverters tend to be more cost-effective than other types of inverters.

    Microinverters are installed on each individual panel. Although this type of inverter has its benefits, they tend to be the most expensive type of inverter.

    Power optimizers have many of the benefits of micro-inverters. They are generally more expensive than string inverters but less expensive than micro-inverters.

    Solar can be installed on metal, shingle, and flat roofs. Each one requires different components and varying levels of labor. Shingle roofs require a specific flashing piece to attach the panel racking to the roof. For a ribbed or standing seam metal roof, the racking is attached directly to the metal. Panels are installed on a flat roof using a ballast mount. a tray held in place by a concrete block.

    Energy Consumption

    Most solar systems are designed to offset as much energy consumption as makes sense financially. The more energy production needed, the more panels and equipment the system will require.

    Depending on how much shading a system will be exposed to will impact the amount and location of the panels. If a system is installed in an area with shading, it may require additional panels to meet the customer’s energy coverage requirements. On the contrary, a system in full sun could produce the same amount of energy with fewer panels.

    Weather Patterns

    Weather patterns in each region are different. Some locations receive more sun than others. Other regions receive more snow. Our systems are designed with this data in mind, impacting the system size and the necessary equipment.

    Interconnection Cost

    much, solar, panels, cost, inverter, installation

    Interconnection is the process of connecting the solar system to the power grid. Each local utility has specific requirements that must be followed. Some of these requirements could impact the type of meter you need or whether transformer upgrades are required. The interconnection cost is different for each project, depending on how much solar is already in your area, the age and strength of the equipment on your line, and the size of the solar array itself.

    Distance from the Solar Array to the Interconnection Point

    Since the power produced by the solar array must be transported to the utility meter, the farther the solar array is from the interconnection point with the utility, the higher the installation cost will be. This is due to the conduit installation or trenching required, as well as the size of the wire required (the farther the distance the larger the wire is required to be).

    Incentives available for solar panel installations

    There are many incentives available for solar owners. These need to be considered when examining the cost of a solar system.

    • Reduced monthly electric bills
    • Protection from rising energy rates and independence from your utility company. You’re in control
    • The 30% federal tax credit can be used to recover taxes from the prior three years and also carried forward 22 years for businesses and 12 years for homeowners
    • Businesses and farms can quickly recover their investment through accelerated depreciation. Those who qualify can apply for a USDA Reap Grant and other local grants
    • There are many local government and utility incentives
    • It’s sustainable and good for the environment

    With that in mind, we’ve listed below the average installation cost for commercial and residential solar energy systems.

    The cost of solar panels for a business

    The average size of a commercial solar system is between 50 kW (600/mo. electric bill) and 200 kW (1,200/mo. electric bill). Solar systems of this size will typically cost between 145,000 and 500,000 before incentives are utilized.

    With the available incentives, most commercial solar owners could receive 60-90% of the system’s cost back within the first few years of installing the solar system.

    The average agricultural and commercial solar owner can expect to save 150,000 to 375,000 over the 30 years of the solar system’s life.

    Without solar, the average business and farmer will spend 240,000 to 715,000 on electricity over 30 years.

    Average MonthlyElectric Bill Solar System Size Total Installed Cost (Before Incentives) Federal Tax Credit Depreciation Cost After the Tax Incentives
    600 50 kW 147,500 38,350 37,304 71,846
    1,200 100 kW 268,800 69,888 67,982 130,930
    2,400 200 kW 494,400 128,544 125,038 240,818

    The cost of solar panels for homeowners

    The average size of a residential solar system is between 5 kW (60/mo. electric bill) and 10 kW (120/mo. electric bill). These solar systems will cost between 25,000 and 40,000 before incentives are utilized. Solar owners could receive 30% of the system’s cost back with the available incentives almost immediately after installation.

    The average residential solar owner can expect to save 4,000 to 25,000 over the 30 years of a solar system’s life.

    The average homeowner will spend 30,000 to 60,000 in electricity over 30 years without solar.

    Average MonthlyElectric Bill Solar System Size Total Installed Cost (Before Incentives) Federal Tax Credit Cost After Incentives
    60 5 kW 26,480 6,885 19,595
    120 10 kW 38,960 10,130 28,830
    180 15 kW 53,285 13,854 39,431

    Keep in mind these are average costs and system sizes for roof-mounted solar systems (Here’s what it costs to install a ground-mounted solar system). The cost will vary depending on your specific requirements. We provide free estimates that will provide you with the exact cost and available incentives to help you decide if solar is the right investment for your business, farm, and home.

    Get the exact cost for a solar panel system that fits your needs

    The best way to determine the cost of your solar system is to request a free custom quote. With a custom quote, you’ll see the complete installation cost, all available incentives, and the payback and ROI.

    Not ready for a quote? Use our Solar Savings Calculator to get an instant estimate of how much money solar will save you.

    You can also view The Solar Energy Channel on YouTube for short, educational videos that cover all things solar. Don’t forget to subscribe while you’re there!

    Last updated on February 16, 2023.

    Microinverter vs String Inverter? How to Pick With 1 Easy Question (Solar Inverters)

    Microinverter vs string inverter can be a tough decision when choosing the perfect solar inverter system for your home.

    Both inverters effectively help you convert DC to AC, but the problem is, what qualities should you look for when picking one?

    Thanks to tech advancements over the last decades, you can now use solar inverters and maximize panel performance, but there’s one easy way to choose between the two.

    When deciding between a microinverter vs string inverter options, it boils down to how dependent you plant o be on your solar energy system and how much money you want to spend.

    However, since there is more than one difference between the two solar inverter designs, it’s always a good idea to compare both the advantages and disadvantages of each before making the final choice.

    This complete guide to solar inverters can help.

    Microinverter vs String Inverter, Which Is Better?

    Microinverters and string inverters are equally effective in converting DC to AC, but each has an advantage over the other that makes it challenging to pick one.

    For instance, microinverters are the top choice for tech advancements and high performance, while string inverters win in affordability and easy maintenance.

    Therefore, it is a close call between them, and the decision entirely relies on personal preference.

    What Are Solar Inverters?

    Before discussing the types of inverters and how they play out against each other, it is crucial to find out what is a solar inverter first.

    Everything starts with the solar cells in your panels. When the sun’s rays hit the PV system, the electrons inside vibrate, creating direct current (DC).

    When you learn how to wire solar panels, you will understand that the circuits in the cells collect the energy that powers your home.

    Since households use AC (Alternating Current), the solar inverters’ main job is to convert the energy into a more usable form.

    (Image: Photo by Paul Krashefski, U.S. Department of Energy 10 )

    much, solar, panels, cost, inverter, installation

    You cannot solely rely on the energy from the panels, and the solar inverters turn it into electricity that can power all your household appliances.

    Besides, if your system produces more power than you need, you can revert it to the grid in exchange for credits.

    What Is a Micro Inverter?

    Microinverters have a unique design to help your panels perform at their most optimal level by converting DC power to AC. Each is a tiny gadget that attaches beneath a solar panel, but you can find brands modify their inverters to link to 2-4 solar panels.

    It is a more flexible system since each panel links to its inverter, and the best part is that it is easier to boost the output of each panel instead of focusing on how multiple panels work. Using MPPT technology, the voltage goes through each microinverter unit such that an issue with one panel doesn’t affect how others in the system work.

    Related Reading : MPPT vs PWM Charge Controllers? How To Choose in 3 Quick Steps (See Chart)

    This mode of operation makes it stand out from the sting inverter and works if the panels are facing different directions or if some panels are shaded. This way, only the affected panel with have issues while others usually work. 1

    (Image: Photo by Laksh Muchhal, U.S. Department of Energy 11 )

    Ultimately, there is no single point of failure; one inverter’s issue doesn’t affect the entire solar power, which is a significant selling point for microinverters. 2

    Downsides of Microinverters

    What Is a String Inverter?

    A string/central inverter works differently from microinverters.

    Instead of each linking to each panel, string inverters connect all of them in the system to a main component, forming a “string” of panels. This tech has been used for the longest time and has an impressive track record.

    Depending on the design, the inverter can hold multiple panels simultaneously.

    For instance, five panels can form three strings, meaning fifteen are in the system. All the strings connect to the central inverter to help boost their performance.

    (Image: Photo by Scott Ely, U.S. Department of Energy 12 )

    Generally, the larger the string inverter, the more panels in the system. If you know how to test solar panels and have the technical knowledge of how the setup works, you can experiment with string sizing (determining how many you can link to an inverter). 4

    Downsides of String Inverters

    Microinverter vs Solar Inverter Pros and Cons

    After closely looking at the individual features of the two inverter systems, you have a better picture of how they work and which will serve you best.

    The following is a breakdown of the microinverter vs string inverter pros and cons based on various features.

    Factor Microinverter String Inverter
    Price Expensive Affordable
    Monitoring Easy to track individual panel performance Impossible to remotely monitor panel performance
    Troubleshooting Complex to troubleshoot Easy troubleshooting
    Safety Rapid shutdown enabled No emergency shutdown
    Efficiency reliable Less efficient
    Hardware It uses a lot of hardware 6 A straightforward system with less wiring and hardware
    Expansion Easy to expand tasking to expand
    Maintenance complex to maintain Easier to maintain
    Lifespan 25 years of service 8-12-year lifespan

    The table above clearly indicates the winner based on various factors, and as a new user, you can use it to guide your decision.

    Consider the features you are looking for and the dealbreakers, identifying what you expect from your inverter and what you cannot compromise.

    Microinverter vs String Inverter, What Is the Difference?

    The main difference between a microinverter vs string inverter is the performance. The central inverters link all the solar panels in a chain that attaches to a single inverter, while the microinverters link to one panel at a time. 7

    Microinverters have the advantage of allowing every panel to work independently, facilitating close monitoring of how each performs. On the other hand, the string inverter lets all the panels work as a team, and any hiccup affects the entire system.

    However, its advantage over microinverters is that it is cheaper and easier to install and maintain.

    What Is the Difference Between Grid Tie Solar Inverters and Regular Solar Inverters?

    Grid-tie solar inverters help convert DC to AC while linking your home’s power supply to the grid. It works like a standard inverter, ensuring that the electricity from the PV cells powers your appliances but at the same time switches to the grid when the solar power is insufficient.

    (Image: Photo by Scott Ely, U.S. Department of Energy 13 )

    However, standard or off-grid inverters don’t work with the grid; they only provide your home with usable solar power. They work independently to draw power from the batteries and transform it to AC which runs your house’s appliances.

    Microinverters vs Optimizers, What Is the Difference?

    While microinverters convert DC to AC, the optimizers don’t; their job involves conditioning or fixing the DC’s voltage to allow the string inverter to convert it to AC. Unlike microinverters, they don’t actively perform the conversion.

    Secondly, microinverters have more extended warranties, unlike optimizers which attach to string inverters with shorter lifespans, meaning you may have to replace optimizers sooner than microinverters.

    What Is the Cost of Solar Inverter?

    On average, solar inverters usually cost 1000-1500 for a standard setup size, but the cost can be higher depending on the installation’s size. Considering the total cost of the entire project, from the price of the panels and other equipment, experts estimate that the solar inverters should cost 0.18 a watt.

    much, solar, panels, cost, inverter, installation

    Accounting for all other factors, the rate could drop as low as 0.09 or be as high as 0.27. Typically, the inverters should cost 6% of the total installation cost, costing an average of 0.18 a watt.

    Microinverter vs String Inverter, Which One To Choose and Why

    No solar inverter system is perfect; each has a fair share of ups and downsides, and as a user, the best you can do is to weigh them carefully. It is advisable to have a checklist of what you are looking for to help you narrow down the options.

    For instance, microinverters are your best bet if you are going for high efficiency, reliability, and easy monitoring of individual panels. However, you will have to consider that they are more expensive to acquire and install due to their design.

    Similarly, your top choice would be the string inverter if you want a cost-effective solution that is easy to troubleshoot and maintain. However, this decision means losing out on features like emergency shutdown and individual panel performance monitoring. 8

    Therefore, your version depends on your budget, what you want in an inverter, and your preferences. Regardless, both are effective systems that help you convert DC from your panels to AC that powers your devices.

    Microinverters and string inverters are practical tools to help convert the DC your panels harness into AC that runs your household. They are unique systems with differing working principles, and deciding between them can be challenging.

    While central inverters are simple equipment that is easy to install and maintain, microinverters are more efficient. 9 The latter may also be very effective but more expensive and complex to install and troubleshoot than string inverters.

    The two have their up and downsides and compelling selling points.

    Therefore, the winner in the microinverter vs string inverter war is based on perception; which appeals more to you?

    Are Microinverters Worth It?

    You can invest in microinverters if you are looking for high performance and efficiency in conversion. They are ideal if your region has weather challenges and your panels have shading problems because they will keep working regardless of the hiccups.

    Solar Panel Connector Types Ranked, When to Use Each (And When Not To)

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    Carbon Footprint: Solar Panel Manufacturing In 1 Simple Explanation

    Do Solar Panels Work on Cloudy Days, at Night, in Rain? Yes No (Here’s How)

    How Long Do Solar Panels Last? Lifespan of Each Type, Batteries,

    How Many Solar Panels to Power a House (For Every Size, Type, Location)

    How Much Do Solar Panels Cost In Your State? (Hidden Fees, Tax Credits)


    1 Burke, D. (2023, January 13). Microinverter vs string vs optimizer: A solar inverter guide. AR Solar. Retrieved March 29, 2023, from,

    2 Rojas, D., Muñoz, J., Rivera, M., Rohten, J. (2021, September 28). Review of Control Techniques in Microinverters. National Library of Medicine. Retrieved March 29, 2023, from

    3 Sendy, A. (2023, March 24). Pros and cons of string inverters vs microinverters. Solar Reviews. Retrieved March 29, 2023, from,

    4 Chaaban, M. A. (n.d.). Stringing PV inverter. PennState. Retrieved March 29, 2023, from

    much, solar, panels, cost, inverter, installation

    5 WAARE. (2022, August 16). Pros and Cons of micro inverters vs string inverters. WAARE. Retrieved March 29, 2023, from,

    6 Solar Energy Technologies Office. (n.d.). Solar Hardware. Office of ENERGY EFFICIENCY RENEWABLE ENERGY. Retrieved March 29, 2023, from

    7 My Generation Energy (2021, January 21). Microinverters vs. Central Inverters: What’s Best? My Generation Energy. Retrieved March 29, 2023, from,

    8 Go Green Solar (2022, April 29). Microinverters vs. String Inverters: What’s the Difference? Go Green Solar. Retrieved March 29, 2023, from

    9 Solar Energy Technologies Office (n.d.). Solar Integration: Inverters and Grid Services Basics. Office of ENERGY EFFICIENCY RENEWABLE ENERGY. Retrieved March 29, 2023, from

    10 Photo by Paul Krashefski, U.S. Department of Energy. Flickr. Retrieved from

    11 Photo by Laksh Muchhal, U.S. Department of Energy. Flickr. Retrieved from

    12 Photo by Scott Ely, U.S. Department of Energy. Flickr. Retrieved from

    13 Photo by Scott Ely, U.S. Department of Energy. Flickr. Retrieved from

    RV Inverters

    An RV solar setup functions very much like a residential PV system, only on a smaller scale. An inverter is still at the heart of the process: it makes the power generated by solar panels usable by converting DC into AC. However, these devices have a number of important differences that are crucial for choosing the best RV inverter.

    What is an RV inverter

    The principle and purpose of an RV solar inverter are no different from a larger residential or commercial device. It converts direct current generated by the panels into 120V AC power. Still, there are many RV specific features that a residential solar user might be unfamiliar with. The number of additional functions tends to increase with price.

    For example, more advanced RV inverters will also be able to charge the 12V battery bank of your RV when you’re connected to shore power. Another popular feature is called automatic transfer. It allows the shore power to bypass your RV power inverter when you’re connected. Even more sophisticated models offer hybrid functionality, allowing simultaneous use of shore and stored power. This will come in handy if you need appliances that consume a lot of energy.

    How to take care of an inverter

    The average lifespan of an RV inverter is 10 to 15 years. The intensity and frequency of use will certainly play a role. But even if you travel in your RV extensively, there are ways to stay with the inverter for much longer:

    • Establish a cleaning routine if your RV power inverter has air intake filters. After a while these filters get dirty and it’s better to call for professional help to clean it. The air is necessary for cooling the device down, but dust may simply kill it.
    • Wipe the dust with a dry cloth every once in a while where you can reach. The less debris and dust, the better for an RV inverter.
    • Keep an eye on the inverter’s display. If it shows an error, take it to a professional.
    • Make sure the connections to the battery are clean and fixed tightly.

    Advantages of RV inverters

    A modern inverter for RV will have a number of advantages compared to older models:

    • Pure sine wave lets you run even very sensitive electronic devices in your RV
    • Safety standards (UL or CSA) ensure that the inverter won’t put you or your property at risk
    • With warranties up to 25 years, some RV inverters might outlive your RV! Enphase microinverters are a good example.

    How to install RV inverters

    An RV inverter installation process is very straightforward. First, you’ll be better off placing the device somewhere near a battery to minimize power losses. Then, to connect it to a solar panel system, all you need to do is hook it up with a battery using large battery cables. Usually you’ll need to add a fuse or a circuit breaker between an inverter and a battery for safety reasons.

    Choosing the right spot to install the device is crucial. Excessive stress isn’t beneficial for any device, so try to avoid humidity, unsafe temperature and direct sunlight. Model-specific details are fully described in the included user manuals.

    How much do RV inverters cost?

    The price gap between the most advanced and the most affordable models is huge. Depending on the functionality, power, brand and reliability you could buy an RV solar inverter for as little as 200 or pay 2,000 or more for your purchase. A1SolarStore offers a selection of devices manufactured by reliable brands. They have been picked by our experts for being the best models in their price range.

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    Solar Panel Cost

    Affiliate Disclaimer: All products and services featured are independently selected by our editors. However, when you buy something through our retail links, we may earn an affiliate commission.

    Solar panels are a considerable investment—not just for the sake of your community and planet, but for your home’s value. Various factors influence how much a solar system costs. including the panels you choose, your home’s energy needs. and applicable state and federal tax incentives.

    We have conducted in-depth research on the best solar companies in the United States and the industry overall. This guide breaks down the significant factors that influence what solar panels cost, as well as the national average for a solar energy system.

    Compare Solar Companies

    Available in 50 states Has been in the industry since 1985 Provides its own monocrystalline solar panels

    Available in 23 states 25-year warranties for the product, labor, and inverter Power protection guarantee

    25-year workmanship and product warranty Perks for new construction homeowners Available in 20 states

    How Much Do Solar Panels Cost in Each State?

    Solar panel costs can vary according to your state’s energy rates and access to solar technology. Check the table below to get an idea of what solar panels might cost you in your state.

    StateAverage Cost Per WattAverage Cost of 5kW System (After Tax Credits)

    This cost data was based on the national average from multiple sources including EnergySage, SolarReviews, and Ecowatch.

    Solar Panel Cost Breakdown

    The Solar Energy Industries Association (SEIA) estimates that the national average cost for a typical 6-kilowatt (kW, or 6,000 watts) residential rooftop solar system is roughly 18,000 before any federal tax credits or local incentives. Overall, you should expect to pay anywhere between 10,000 and 24,000, depending on your system size and location. The total cost of a solar system includes solar panel. which vary in price by brand and type, installation labor, and additional equipment. A solar installation company will charge a combination of labor costs and a price per watt for each solar panel. Based on a May 2019 report

    Types of Solar Panels

    • Monocrystalline: The most popular solar panel on the market today, monocrystalline panels offer the highest efficiency rate, at an average of 24%. However, they are also the most costly. The average cost for monocrystalline solar panels is 1 to 1.50 per watt. Therefore, a standard 6kW system costs between 6,000 and 9,000.
    • Polycrystalline: Polycrystalline panels are a more cost-effective option up front. However, they feature a lower efficiency rate than mono panels, at an average of 20%. The average cost for polycrystalline solar panels is 0.90 to 1 per watt, or 5,400 to 6,000 total.
    • Thin-film: Thin-film solar panels are less popular for residential solar systems. They tend to cost around 1 to 1.50 per watt.

    Solar Panel Installation Cost

    Installation costs range between 100% and 200% of the cost of the solar panel system itself. So, for example, if you purchase a 6kW monocrystalline solar panel system for 9,000, then a solar installation company will likely charge approximately 18,000 to 27,000 for the system and the installation, combined. The installation of a larger system will naturally increase labor costs.

    Additional Equipment

    Residential solar systems also typically require a battery to store energy and an inverter, which converts the variable direct current (DC) output of your PV solar panel s into alternating current (AC). Most solar companies will include these components in your solar system’s design. However, if you request specific brands of inverters or batteries, they may come at a premium.

    Other Factors to Consider About Solar Panel Costs

    In addition to the cost per watt for each solar panel, other factors influence the overall cost of a solar power system. We have listed some of the most critical factors for you below.

    Energy Needs

    Take note of your current cost of electricity. as switching to solar may or may not save you money on your energy costs. The larger your home and higher your monthly electric bill. the more benefits you are likely to see from switching to solar. A solar system can eliminate a homeowner ’s electricity bill in some instances.

    On the other hand, if you already have relatively low utility bills. you may not see enough savings to justify the expense of installing a home solar system.


    The location of your home plays a vital role in how much money solar panels can save you. Using data from the Centers for Disease Control and Prevention (CDC), the data analysis site Stacker determined that the following 10 states are the sunniest in the continental United States:

    Roof Type

    You can use a solar panel system even if you don’t live in these blue-sky states. Most solar panel installers use photovoltaic (PV) panels, which can absorb both direct and indirect sunlight. However, these solar panels generate the most energy on angled roofs that allow maximum sun exposure. On the other hand, a flat roof will require the construction of angled platforms, which will add to your labor costs and increase the overall cost of your solar system installation.

    Additionally, south-, west- or southwest-facing roofs get more sun exposure. For example, a home that experiences less shade and has a south-facing roof with a slope between 15 and 40 degrees will receive the most sunlight. Therefore, these homes receive and retain more solar energy. On the other hand, a home with trees around it or in a less sunny region, like the Pacific Northwest, may not save as much money as a homeowner in Arizona or California.

    Your roof’s age and structural soundness will also influence the overall cost of solar panel installation. Repairing your roof or upgrading your roofing material to support panels will come at an additional expense ahead of installation and affect your total cost.

    Solar Incentives

    Both state and federal governments provide solar incentives to help offset the up-front costs of switching to solar. Namely, the federal solar tax credit, or solar investment tax credit ( ITC ), plays a significant role in helping to make residential solar panels a better investment. This tax credit provides 30% off your total price of solar panel installation.

    Local incentives vary by state. For example, some states allow you to earn and sell credits for the electricity your solar system produces through a net metering program. Others offer solar rebates. We recommend using the Database of State Incentives for Renewables Efficiency to see what rebates and state tax credits you can receive.

    Payment Options

    Solar providers offer various payment methods that influence how cost-effective your investment in solar is. Here are the four payment options you can choose from with most solar companies :

    • Purchase: Paying for your solar system up-front is the most cost-effective payment method for a solar system. Not only will you avoid paying interest over time, but you will also be eligible to file for the federal tax credit at your next income-tax filing.
    • Solar Loan: Solar companies understand that not every homeowner is willing or able to pay for their system up-front. so they partner with a lending company to provide loan options. As with all bank loans, your interest rate will depend on your credit score.
    • Solar Lease: Some homeowners may elect to lease their solar panel systems. With this arrangement, the solar company still owns the system, and you pay a set monthly amount for the installed solar panels. This option is not as cost-effective over time as purchasing or financing your system, as you are not eligible to receive state or federal incentives. However, you avoid paying hefty up-front sums.
    • Power Purchase Agreement (PPA): A solar PPA lets you pay little to nothing for the actual installation of the PV system. Instead, you pay monthly payments to a utility company based on the energy generated by the system. Think of this as if you are paying for your usual electricity bill. As with a lease, you don’t own the system and are thus ineligible for tax incentives.

    Our Recommendation

    Residential solar panels help you cut both your electricity costs and carbon emissions. To ensure switching to solar is a sound investment for you, pay attention to your current utility rates. If you notice that your utility bill tends to be on the mid to upper end of your state’s average, you are nearly guaranteed to save money with solar in the long run.

    In addition, if you can purchase or finance your solar system. you are making a more cost-effective decision than if you lease or sign a PPA.

    We suggest using the tool below to see which solar installation companies service your zip code and get a sense of what a solar provider near you charges for installation.

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