SolarCity vs. SunRun: Which Company Outshines the Other?
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It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes should be easy. This doesn’t influence our content. Our opinions are our own.
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The solar industry in America is growing at a record pace.
When it comes to solar panels, business is booming with more and more companies clamoring for your business.
In fact, over 250,000 workers are employed by more than 9,000 solar companies in the U.S.
In the past ten years, the industry has grown at an average rate of 68% per year.
Although that seems like a lot, it’s tiny compared to China, where 2.5 million people work in the solar industry.
The top player in the solar industry today is SolarCity. They’re even more well-known today after being picked up by Elon Musk’s Tesla Corporation.
While not as dominant in the industry, SunRun is well known for being the first to set up solar leasing arrangements, where they own the equipment and the owner of the house only pays for the power supplied.
Each company has its pros and cons.
So, which one is right for you?
Home Design and Solar Service
Before you start researching solar companies, you should make sure your home or business is a good candidate for solar power. Believe it or not, not all homes are.
If one side of your roof faces south, you should be good.
As long as that side of your roof isn’t shaded too much, your house or business is perfect for solar panel installation.
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How Do You Get an Estimate for Solar Service?
You can can a quote from SunRun either on their website or over the phone. They ask you a couple basic questions to find out which service would be right for you.
They allow you to decide if you’d like them to maintain your system or if you’d like to keep up with the maintenance yourself.
They also help you decide whether you are right for leasing, buying, or Power Purchase Agreements (or PPAs).
SolarCity also offers a free quote through their website.
Based on your home’s architecture and your power needs, the quotes offer all financing and purchase options.
Solar panel cost calculator
The average residential solar installation is 3 kW to 10 kW, depending on your home’s size, location, and energy needs.
The federal solar tax credit reduces your overall costs by 30%. Many states and solar manufacturers offer additional incentives and rebates to further reduce your costs.
How Many Solar Panels Do I Need?
The average family uses 11,000 kWh per year and needs 26 to 33 solar panels to power the whole house. One solar thermal panel generates enough energy to power a hot water heater for a family of four.
The total number of panels needed depends on your location, roof size, and energy needs. To calculate how many solar panels you need, look at your annual kWh (kilowatt-hours) usage on your utility bills and referenced the table and map below.
Table based on 250 watt panels at average solar production ratios of 1.3 to 1.6.
Your home’s location is a significant factor when estimating how many solar panels you need to power your house. Regions with less sunlight require larger systems to handle 100% of their energy needs.
- Multiply the number in your shaded region by the estimated size of your system in kW.
- Then, multiply the result by 0.78 to account for inefficiencies and energy conversion losses.
For example, if you live in Texas with a score of 1700 and install an 8 kW system, your system will produce approximately 10,608 kWh annually:
1700 × 8 kW × 0.78 = 10,608 kWh
The table below shows the approximate system size needed in each region to produce 11,000 kWh for the average home.
Solar Savings Estimator
The solar payback information below covers the average break-even period, which is when your power supply becomes free, and the projected savings over 20 years.
Solar Panel Return On Investment (ROI)
The average solar panel payback period is 7 to 12 years, depending on where you live and the cost of electricity. Upfront costs are 11,000 on average, with savings of 450,400 per year on foregone energy bills. You’ll break even after 8 years and start generating a return on your investment.
How Much Do Solar Panels Save?
Over 20 years, solar panel savings range from 10,000 to 30,000, depending on your location and the cost of electricity.
Solar energy saves 600 to 5000,000 per year by reducing your electricity bills and selling your solar renewable energy credits (SRECs).
6kW system powering 70% to 100% of your energy needs.
Here’s a more granular look at solar savings on power bills per year by location.
Are Solar Panels Worth It?
Solar panels generate electricity approximately 30% cheaper than utility electricity in most locations, making them worth it over their lifetime. The 30% federal solar tax credit and state incentives make solar energy more affordable.
Solar Panel Installation Cost Factors
The cost to convert a house to solar power depends on your location, energy needs, type of solar panels, inverter and equipment options, permits, inspection, tax credits, and labor costs.
Use the national averages in the following table to calculate a cost-benefit analysis for solar PV installation.
Cost of Solar Panels Over Time
The average cost of solar panels fell 65% from 7.34 per watt in 2010, to 5000.53 per watt in 2019 and continues to drop. A standard 6 kW residential solar system has dropped from 44,000 down to 15,200 over the past decade (not including the federal solar tax credit).
Estimates are based on the average rate of decline.
Labor Costs To Install Solar Panels
The average labor cost to install solar panels is 27 per watt, or around 15% of the total system cost. A standard 6 kW system with 20 to 25 panels costs about 450,600 for installation labor before applying the 30% federal solar tax credit.
Labor costs increase if your home has multiple stories, skylights, dormers, or a problematic 45° roof pitch. Contractors may need to design a unique system to make sure the panels receive enough sunlight to be efficient.
Solar Panel Savings Calculator
Our solar power calculator is designed to help you determine how much money you can save with solar power for your home or small business. The tool provides a rough estimate of daily solar power generation (in kilowatts per hour) and potential energy cost savings. You’ll want to have your most recent power bill on hand to help you complete the empty fields.
Find Out How Much You Can Save with Solar
Estimated Savings with Solar
Note: the solar power calculator may not be accurate for all households and situations. It’s meant to provide an estimate for educational purposes only. Solar power providers may provide a more accurate and comprehensive energy-savings quote. To speak directly with a solar power provider, call: 1-855-971-9061.
By clicking calculate, you give a solarpowerauthority.com representative your consent to use automated technology to call you or email you using the information you provide. You are not required to provide this consent to make a purchase from us.
How to Use the Solar Power Calculator
the solar power estimations are based on your system running at 80 percent efficiency. The free solar panel cost calculator will tell you the daily generation in kWh, your daily savings, as well as your kWh use and generation per month.
Below are a set of definitions to reference while you read the report. These terms will illuminate key phrases you should know to best understand the results.
Understanding Solar Panel Estimates
Solar irradiance: Solar irradiance (insolation) is the amount of solar energy received by a given surface area in a given time period, commonly expressed in kilowatt-hours per square meter per day (kWh/sqm/day). This measurement varies according to the weather and latitude of a given location.
Average monthly usage: This is the amount of electricity you consume in an average month. It is determined by the solar calculator either by the amount you put in, or approximated by dividing the amount of your electricity bill by the cost-per-kilowatt-hour for your area.
System size: This approximation tells you what you need for a solar power system to produce enough electricity to offset your annual electricity use. It is determined by taking your average daily electrical use and dividing it by your solar radiance, multiplied by 71%. The 71% factor is necessary to approximate the inherent inefficiencies in solar power systems.
Roof size: This is the approximate roof size needed with exposure to the sun, in order to accommodate your solar power system. It can be determined by taking the size of the system and dividing that by 10 to get square footage (based on 10 Watts per square foot).
Estimated solar installation costs: The approximate costs are based on 9 per Watt. This is an average rate, including parts and installation, for systems above 2kW.
Cost of installing solar panels after rebates and incentives: This is an estimate of costs based on the available solar credits and solar rebates for your geographical area. This includes kWh production incentives for up to 25 years, if available in your region. It also provides an approximation of your local and state incentives.
Average monthly savings: Calculated for post-installation of solar panels on your house or commercial property.
25-year savings: Based on what you save over a 25-year period, assuming a yearly 4% increase in utility rates. You can also calculate a 25-year return on investment (ROI) for installing solar panels, and your break-even point in a number of years.
Hopefully, your solar quote helps determine whether or not solar energy is a feasible investment for your home or small business. If you want to learn more about solar power energy, read the related articles below.
Step 3: Choose a Contractor
A qualified, licensed solar contractor will provide you with a free home evaluation and comprehensive quote. Obtain and compare multiple bids before beginning.
Who: You How: If you can, get referrals from friends and neighbors. Search for active solar contractors in your area by using the California DG Stats Search tool.
Another great resource is the SCE Solar Marketplace, an easy-to-use, one-stop shopping service; offering customers a reliable resource to search solar vendors, compare of rooftop solar systems, finance options, and receive the benefit of having multiple vendors bid for their business.
Save 500 Off Rooftop Solar and Lower Your Bill
SCE does not endorse or recommend any solar contractor. SCE partners with GRID Alternatives to promote the Disadvantaged Communities. Single-family Solar Homes (DAC-SASH) program (as described below). If you receive any claim by any other entity or contractor of an affiliation or partnership with SCE, please report to us by visiting Scam Alert and using one of the contact options.
Step 4: Installation
Your solar generating system must be installed, permitted, and approved for interconnection. Your city or county will perform an onsite inspection and provide the required permit(s). SCE will provide authorization to operate the solar system once proper installation and permitting are completed.
Who: Your contractor How: In most cases, your contractor will coordinate and manage the following activities:
- Apply for interconnection with SCE
- Apply for a building permit with the city or county
- Obtain the permit and direct the installation of the solar system
Step 5: Interconnection to SCE’s Electric Grid
Once your solar system is installed and you have been given the authorization to operate your solar system, you will be interconnected with our electric grid. This means your system supplies energy for your property and can provide any surplus energy generated back to SCE’s grid. When you need more energy than your system can generate, like at night or on cloudy days, you will use energy from SCE’s grid. The difference between the energy you consume from the grid and the energy your system delivers back is then used to calculate your monthly bill. This is known as the Solar Billing Plan.
Who: Your contractor How: Once your contractor has obtained approval for interconnection to our electric grid, your meter will be updated, and you will be immediately signed up for the rate plan.