Solar panel costs on the decline 

The cost of solar panels for a solar panel system has decreased over the last 10 years due to positive trends in supply and demand. From California to Florida, homeowners are turning toward solar energy and away from dirty fossil fuels. While increasing numbers of people go solar, it figures that solar panel prices will continue to decrease. More competition and more widespread adoption mean better deals for solar customers.

We are all concerned about the rise in pollution and the increase in our electricity costs and electric bills. This has increased interest in alternative, renewable energy; solar is among the most popular. We’re sure you’ve heard it before: we can get enough solar power system energy from the sun in one hour to provide the power needs of the world’s population.¹ 

Sunrun & residential solar: one rooftop at a time

When you shop for rooftop solar panels, you’ll receive a quote for the entire purchase and installing solar panels on your roof by a solar installation company. The hardware usually includes monocrystalline solar panels, a controller, batteries, and an inverter. But there are also solar panel installation costs, permits, labor, and additional business expenses from your solar company.

How your roof is built is considered, as are how many solar panels are needed to fulfill your family’s energy needs. State and federal solar tax credits, such as the federal solar tax credit, as well as solar incentives and rebates, are considered when calculating your solar savings (and they can be significant) … and then installation begins. Once you determine your solar energy system size, you’re all set.

Basically, you’ll get a turnkey quote for your entire system. So get ready for your average solar system size, reducing carbon emissions and a smaller electricity bill or electric bill.

How much do solar panels cost?

Where you live and how much sun you get will help determine your system size. For example, California gets roughly 70% of sun per year, and Florida gets roughly the same. Prime real estate for going solar! For those states that get a lot of sun, your solar panel system requirements will be smaller. Less sun? You’ll need more solar panels to capture the sun’s power.

The average cost of solar panels is also determined by how much energy you need to run your home. This cost is based on the kilowatts (kW) necessary to run your appliances, charge your electric car, or keep your house humming during a storm or heatwave when a power outage occurs. Many people consider solar loans to make this investment more affordable.

Bottom line? When you determine the size of your solar energy system, you get to choose which appliances you want to connect. You’re in control of your power needs, and the solar panels pay themselves back over time by reducing energy use.

Kilowatts (kw) determine solar costs

A kilowatt is a measure of 1,000 watts of electrical power. And your energy usage is measured in kilowatt hours (kWh). One kWh is the energy you use if you kept a 1,000 watt appliance running for an hour.

Here is another popular example: a 100-watt light bulb operating for 10 hours would use one kilowatt-hour. A solar panel installation generally provides enough to meet average household needs.

A conservative estimate is that you will need about 100 square feet of solar panels for every kW you generate. Not every state gets eight hours of sun, so count on 400 to 800 square feet of solar panels to capture the sun’s rays to power up most homes. And this would be a 4 kW to an 8 kW system.³

Many homeowners across America use roughly 4,000 watts to power up household appliances. Again, that’s a 4 kW system. But don’t forget the components and nuances described above, such as thin film solar panels. They all impact what your system will cost. You could need an 8 kW system to meet your family’s energy needs, and some families have systems that reach up to a 10 kW size.

Four kilowatt-hours of energy (or 4,000 watts) is enough to watch television for 40 hours, vacuum for four hours, wash 48 pounds of laundry, or work on your computer for 20 to 40 hours. So, if you purchased a 4kW solar system, you could do this with the amount of energy supplied by your solar panel installation.⁴

Yes, we realize most people won’t want to vacuum for four hours, but as we mentioned, a professional solar advisor will help you determine what size solar system fits your home's energy needs. See our solar plans for residential solar power pricing and features.

Incentives & owning determine solar costs

If you are considering a solar system purchase, you will like this: The federal government gives you a 30% solar tax credit. You get to deduct 30% of your federal income taxes from the cost of your solar system (your personal income tax credit).⁵ 

And many state and local governments offer property and sales tax exemptions. Don’t forget to ask about cash rebates.⁶ These incentives can add up to thousands of dollars in solar savings and reduce your initial costs to install solar panels.

What does this amount to? In California, expect to pay $12,000 for a 6 kW solar system and $24,000 for a 10 kW (a big system for a big house with a big family). In Florida, the range is about $9,000 to $19,000.7 Find out more about your state's solar cost and savings.

Solar prices across America

Every state differs, but the industry can predict your system's cost and savings profile based on factors like local sunlight and your home’s location. This is where the National Renewable Energy Laboratory comes in, providing guidance and data for the best-fit methods. Your solar installation company and solar installer will help walk you through sizing and costs.

If you want to dive deeper, use Sunrun’s solar calculator to see your potential solar savings and the positive environmental impact on your community compared to your current reliance on the power grid. You can also find your solar state incentives and rebates. 

Or give us a call. We love to talk solar! Get a complimentary solar loan quote that is specific to your energy needs. Contact us today!