How much do solar panels cost in 2024?
Over the last ten years, the cost of installing solar panels has decreased by over 40%, fueling growth across new markets and deploying thousands of systems across the country. The upfront price for an average-sized residential solar system has fallen from $40,000 in 2010 to about $25,000 today. Meanwhile, utility-scale solar now costs between $16/MWh and $35/MWh, making it competitive with all other types of energy generation.
While the cost to install solar panels on your home may fluctuate, leasing solar panels through the Sunrun Subscription Plan allows you to take advantage of customized clean energy, resilient backup power, and predictable rates with an affordable monthly plan for as little as $0 down.
From solar panel installation and maintenance to hardware costs and alternate financing options, let’s dive into the cost of solar panels:
The true cost of solar panels
The average cost of residential solar keeps falling. Solar panels are rapidly spreading on rooftops across the country, and that influx is affecting how much solar panels cost. As the solar cost continues to fall, it’s no surprise that more and more homeowners are putting solar panels on their homes. Today’s residential solar panels are more affordable than ever and feature technological advances that maximize power production and keep up with modern living.
While the exact price will vary based on location, the size and scope of your installation, and available tax credits and rebates, homeowners can expect a range that makes renewable energy an attainable investment for a sustainable future. This move can reduce your carbon footprint and may decrease your electricity bills over time, making solar panels a smart, eco-friendly choice for energy independence.
How much does the average solar system cost?
8 factors influencing solar energy system costs
Various factors come into play when considering the cost of installing solar panels, shaping the overall expense of transitioning to solar energy. Let's delve into these aspects:
1. Solar system size
The size of your solar energy system is determined by factors such as your energy consumption, the roof's sunlight exposure, and the efficiency of solar panels. Typically favored by homeowners, monocrystalline solar panels stand out as the preferred option due to their superior efficiency and aesthetics. Consequently, the total expense of your solar system hinges on the wattage required to sustain your household's energy needs and plan for any future increases in electricity consumption.
2. Cost vs. savings
Several elements, including regional sunlight exposure, electricity rates, energy consumption, and available rebates and incentives, influence the potential savings from installing solar panels. When you partner with Sunrun for a Subscription Plan our experienced Solar Advisors can handle all aspects of your home solar system installation, from paperwork to permits to ensure your system is fully customized to your unique energy needs.
3. Solar panel installation
Installation costs encompass various components, as outlined by the National Renewable Energy Laboratory (NREL):
Category | Cost Breakdown |
|---|---|
Labor | $0.30 per watt |
Panels | $0.47/Wdc |
Inverter | $0.12–$0.39/Wdc |
Permit | $0.06/Wdc |
Structural BOS | $0.10/Wdc |
Electrical BOS | $0.19–$0.27/Wdc (Varies by inverter option) |
Sales Tax | Sales tax varies by location; the weighted national average is 5.1% |
Electrician | $19.74–$38.96 per hour (Varies by location and inverter option) |
Laborer | $12.88–$25.57 per hour (Varies by location and inverter option) |
Burden Rates | (% of direct labor) Total nationwide average: 41.7% |
Source:https://www.nrel.gov/docs/fy23osti/87303.pdf
*Figures based on the average 6.2-kilowatt residential solar system.
**Wdc: Watts direct current
4. Solar panel maintenance and repairs
Solar panel maintenance ranges from routine cleaning to major repairs. On average, households pay $150 for one solar panel cleaning. Solar panel cleaning companies charge between $3 and $10 per solar panel based on roof slant, home height, and system size. Some solar installers charge a flat fee for a system cleaning. If your system is cleaned professionally twice a year, as recommended, you can expect an annual bill of about $300.
If your system is damaged, you may incur additional expenses. Repairs to your system will include the prices of equipment and labor. Labor is typically priced at $100 per hour. Materials for solar repairs could be as little as $180 but may also be greater than $1,000. Your combined total bill may range from $200 to $3,000.
The four most common types of damage to a home solar system and the costs of repairs area:
Category | Cost Breakdown | Sunrun Subscription Plan Cost |
|---|---|---|
Cracked panel | $100-$500+ | $0 |
Wiring damage | $100-$400 | $0 |
Replacement inverter | $1,000-$2,500 | $0 |
Circuit breaker tips | $800-$1,500 | $0 |
A replacement inverter is the most common repair, and this is a planned maintenance item every 10-13 years. Like cleaning costs, the amount you pay for repairs is affected by roof steepness, system type, and system size. And if your solar panels have extensive damage, it may be cheaper to replace them.
When you own your system, you are responsible for the cost of maintenance and repairs. Your warranty should cover specific system failures; contact your installer before you begin repairs. You save thousands of dollars in maintenance and repairs when you lease your solar panels through the Sunrun Subscription Plan. You simply pay for the power, and we take care of the rest. Our comprehensive service package features the Sunrun Guarantee, which includes best-in-class monitoring, free equipment replacement, system repairs, including parts and labor, and routine maintenance.
If you’re set on buying your own home solar system, you can also purchase our full-service package, Protection Plus. While the system is yours, we’ll give you the same comprehensive support that comes with our Sunrun Guarantee.
5. Solar panel manufacturers
Partnering with leading manufacturers can ensure quality and performance. Skip ahead to factor #7 to read more about hardware options. Each option has a different benefit that influences the cost.
6. Geographical location
Solar panel costs vary across states, with factors like local incentives and sunlight exposure playing a significant role. For instance, Florida has lower installation costs compared to Rhode Island, despite both having different average costs.
Just because a residential solar system costs more in a given state doesn’t mean it’s any less cost effective. Local incentives can make a huge dent in solar panel installation costs even in the most expensive states.
7. Hardware options
Different types of solar panels (monocrystalline, polycrystalline, thin-film) come with varying costs and efficiencies. Monocrystalline panels, though pricier, offer higher efficiency and longer warranties compared to polycrystalline and thin-film options.
The three most common kinds of solar panels are monocrystalline, polycrystalline, and thin film. Learn more about different types of solar panels.
The type of panels you choose will factor into the system's price. But remember that if you decide to lease, you’ll pay for the power rather than the solar panels. The cost of solar will come down to the amount of solar power you’re projected to use under your lease agreement.
8. Solar Panel Incentives
Federal and local incentives, such as tax credits and rebates, can significantly reduce the upfront costs of installing solar panels, making the transition to solar energy more financially viable.
Federal solar tax credits: In 2022, Congress enacted the Inflation Reduction Act, introducing substantial modifications to the solar tax credit landscape. Among the key changes was an extension of the credit's availability until 2035, accompanied by a boost in the credit percentage from 22% to 30% until 2032. Individuals who install solar panels in 2022 but have yet to claim the credit can now qualify for the increased 30% credit amount. Homeowners who lease and install solar panels with Sunrun Subscription Plan qualify for tax credits; Sunrun handles all the paperwork and passes the savings on to you through our low monthly rate.
Local solar incentives: States may offer additional incentives, including tax credits and rebates, further lowering the overall cost of going solar. Learn more about solar in your state.
Understanding the various factors influencing solar energy system costs is crucial for making informed decisions about transitioning to renewable energy sources.
Why Install Solar Panels with Sunrun
Every home is different, and your electricity demands are unique. Our experts are here to help you. Sunrun designs, installs, finances, insures, monitors, and maintains home solar systems, while families receive predictable pricing for 25 years or more. As the nation’s largest residential solar, battery storage, and energy services company, we provide families with industry-leading services, products, and financing options to meet different peoples’ needs. Our solar leases offer the financial value and flexibility you deserve.
Sources:
Solar Industry Research Data- SEIA
U.S. Solar Photovoltaic System with Energy Storage Cost- NREL
Solar Installed System Cost Analysis- NREL
Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaic Energy.gov
Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics 2- Energy.gov