Residential Solar Panels Worth It

Ark s analysis reveals that even with free solar panels and a total cost per watt installed of 2 29 the net present value of an unsubsidized residential solar project would be roughly 5 000.

Residential solar panels worth it.

Our data shows that the average cost of a residential solar system in 2020 is 3 18 per watt before the federal tax credit. Most property owners can break even on their solar investment in 7 to 8 years. Remember this breakdown assumes that you hire an installer to complete your project. The cost of installation will vary depending on the company you choose to install your residential solar panels.

In our opinion no amount of price decline for solar panels would matter. Though solar is a significant investment upfront it proves to be that solar is worth it in the long run. Factors like electricity rates solar panel system cost and financing method all play into how worth it solar will be for you. The average cost of a solar panel system for a home in may 2020 is 3 18 per watt making an average 7 kw installed residential solar power system 22 260 before the 26 federal solar tax credit and 16 472 once the tax credit is applied.

With installation an average residential 5kw size system costs between 3 and 5 per watt according to the cse. Over 25 years going solar costs less than half what you d pay the utility to produce the same amount of energy. As of 2019 the average increase in a home s value from adding solar was 4 1 meaning on a 300 000 home the 12 000 after rebates it cost to install solar will increase the value of the home by 12 300. One of the biggest advantages of installing residential solar panels is a 30 federal tax credit on the total cost of a system.

That means homeowners but not renters can subtract the credit from the federal income taxes they owe in effect reducing the price of their solar purchase by nearly one third. It usually costs 15 000 to 20 000 after tax credits and can reduce your electricity bill by 70 to 100 percent depending on the size and orientation of your roof and local regulations. This makes it easy to compare the relative value of solar systems of different sizes in terms of the watts of power they can produce. That means for the first time in history your solar panel system may cost less than the value it adds to your home.

At 0 the project would not be worth the investment. By installing higher quality solar panels your total 20 year savings will usually be a lot higher. How much do solar panels cost for an average home. Also keep in mind that cheaper isn t necessarily better in this case.