For many years, homeowners have wanted to transition to sustainable energy, but found the upfront costs were not necessarily offset by the return on investment. Although many feel it's wise to convert to sustainable energy sources to protect the environment, homeowners dealing with sometimes tight budgets need to make cost-effective home improvement decisions.
That's why checking in periodically on the state of solar energy installation costs, utility bill savings and property value helps everyday people make informed decisions. In recent years, the price tag on solar panels and their ability to generate increased electricity incrementally improved. Based on current data, it may be cost-effective to add solar panels.
How Much Does a Solar Energy Installation Cost?
To say the upfront cost of a complete solar energy system is uneven across the country would be something of an understatement. Factors such as material availability labor costs and others differ greatly between regions. A typical solar energy installation can average anywhere from $17,000 to $31,000. The highs and lows of a given area can run between $4,500 and $45,000. Some of those costs may stem from the quality of the system, the number of kilowatts it produces and the life expectancy of the panels. Here is a brief comparison of the types of panels available:
- Monocrystalline Panels: This type of panel can last for upwards of 35 years and generally costs approximately $1-$1.50 to generate a watt. These are generally considered the most energy-efficient.
- Polycrystalline Panels: Costing $0.70-$1 per watt, these panels last up to 27 years. Although their energy efficiency ranks lower than monocrystalline panels, they tend to be space-efficient.
- Thin Film Panels: Averaging $1-$1.50 per watt, they provide increased flexibility. Constructed from layered photovoltaic material, this class of solar panels bends relatively easily and lasts up to 17 years.
The type of panel is of course just one financial factor to consider when trying to determine if adding solar energy is right for your budget.
How to Lower the Cost of Solar Energy
Federal and some state governments have been active in encouraging homeowners to adopt sustainable energy. According to Energy.gov, federal tax credits for systems installed by the end of 2022 are reportedly 26 percent and drop to 22 percent in 2023. Congress may decide to renew the ongoing solar tax incentive later. The good news for people saving money for an installation is that no there is no investment ceiling. That means homeowners can reduce their upfront costs on any size and type of system. Many states also offer tax rebates and incentives for property owners who invest in solar.
One of the financial incentives that sometimes flies under the radar involves property value. Reports indicate that single-family homes with solar energy systems typically generate higher resale values. The price may range from as low as 3.5 percent above median value to 9.9 percent, depending on the location.
When deciding whether solar panels are a good investment, making an informed decision involves upfront costs, system longevity, kilowatt-hours, tax incentives, rebates and improved property value. The decision may seem complicated. However, if the math is in your favor, you get the added value of feeling good about doing your part for a cleaner and greener environment.
About the Author
Sheida Rezazadeh
Our Mission Statement:
Our philosophy is simple: clients come first. We pledge to be in constant communication with our clients, keeping them fully informed throughout the entire buying or selling process. We believe that if you’re not left with an amazing experience, we haven’t done our job. We don’t measure success through achievements or awards, but through the satisfaction of our clients.
About Me:
With over two decades of experience in the real estate industry, I derive immense satisfaction from assisting clients in realizing their real estate aspirations. My journey in this field commenced with personal investments and the management of multiple properties, providing invaluable insights into the dynamics of the real estate market. Over the years, I have refined my negotiation skills, accumulating extensive knowledge and experience that empower me to deliver exceptional service to my clients.
As a seasoned professional, I specialize in residential, luxury, multi-unit, and commercial real estate. I possess the acumen to secure top dollar for sellers and the best possible prices for buyers. Recognizing the significance of creating a home sanctuary as a mother and wife, I understand the security that real estate investments can bring. It's not just a transaction; it's a life-changing experience, and I am dedicated to guiding my clients through every step of the process.
Leading a team of highly-seasoned real estate professionals, we are committed to providing personalized service. We take immense pride in building enduring relationships with our clients and tirelessly work on their behalf to help them achieve their real estate goals. Our team comprises the best and brightest in the industry, consistently striving to lead in research, innovation, and consumer education.
As a trusted resource in the complex world of real estate, I am devoted to providing the best and most timely information to my clients. My team and I stay up-to-date with the latest trends and developments in the industry, utilizing this knowledge to help our clients make informed decisions. It's not just about buying or selling a home; it's about building a better future for you and your family, and I am honored to be a part of that journey.