The Price of Residential Solar Power

How are Solar Panel Costs Measured?

Solar panels are measured in watts and are often priced in dollars-per-watt. Currently, the average solar panel costs $2.67 to $3.43 to buy and install.⁴ The price depends on factors, including its capacity. The size of your system will depend on factors like how much energy you use, your roof’s sunlight exposure, and panel efficiency.

Types of Solar Panels

The type of solar panels you choose will factor into the cost of your home solar system. The three most common types of solar panels are monocrystalline, polycrystalline and thin film.⁶

1. Monocrystalline -

   • Monocrystalline are the most efficient on the market today, which means you need less panels to fulfill your energy needs. Monocrystalline solar cells are single-crystal silicon, giving electrons greater freedom to move and create electricity.⁷ These panels are typically black, giving your roof a sleeker aesthetic. Monocrystalline panels also maintain their efficiency for longer and usually come with a 20 to 25-year guarantee.⁶

2. Polycrystalline -

   • Polycrystalline panels are made with many fragments of silicon.⁷ While this makes them less efficient, it creates less waste in production and are more affordable.⁶  They also tend to have a blue tint, likely the most recognizable feature of solar panels today. 

3. Thin Film -

   • Unlike monocrystalline and polycrystalline panels, thin film isn’t made of silicon. Instead, it’s layered with photovoltaic materials on metal or glass.⁸ While the least expensive option, thin film isn’t as efficient and likely won’t cover the average household’s energy needs without taking up lots of space.⁶

​If you decide to lease your solar system, you’ll be paying for the power rather than the panels. While types of panels are still an important consideration, the cost of solar will come down to the amount of solar power you’re projected to use under your lease agreement. 

Mount Types

While solar panels are the main component of a solar system, how you mount the panels will also affect the cost. There are three mount types:⁶

• Fixed Mount: $10-$15 per mount
• Adjustable Mount: $50 per mount
• Tracking Mount: $500-$3,000 per mount

^{Source: https://www.homeadvisor.com/cost/heating-and-cooling/install-solar-panels/}

1. Fixed Mount⁶

   • Like its name suggests, fixed mounts are stationary and can’t be moved to capture more sunlight, making them less efficient than other mounts. However, they’re also the least expensive. In addition, states with consistent sunlight such as  Arizona and California are the least affected by this.

2. Adjustable Mount⁶

   • Adjustable mounts can be tilted to maximize solar energy production. This mount type can also lay your panels flat during a storm to avoid wind damage. While they’re more expensive than fixed mounts, adjustable mounts might make the most sense for regions with more seasonal climates and less space to maximize energy production. 

3. Tracking Mount⁶

   • A tracking mount follows the sun’s arch for maximum energy production. Even though they’re the most expensive, track mounting could add 45% in energy production and might be worth considering based on your location. However, track mounting also requires more attention and will be much more costly to maintain.

Cost of Solar Is More than Just Panels

The average price for a residential  solar system is composed of more than just panels and mounts. It also includes wiring, racks, an inverter, and often a solar monitor and meter, and may also include battery storage. In addition, installation labor fees can raise the overall cost-per-watt.

If you purchase a solar energy system, the installation and material costs will depend on its size. The average residential system is 6 kilowatts.⁹ Your residential solar system can be larger or smaller depending how how much energy you use, sun exposure and panel efficiency. 

In general, the average cost of a solar installation breaks down between equipment, installation and permits and operation.¹⁰

Solar Panel Installation Cost Breakdown

Here’s a closer look at the cost breakdown of a home solar installation, based on findings from the National Renewable Energy Laboratory:^10*

• Labor: $0.30 per watt 
• Panels: $0.47/Wdc 
• Inverter price: $0.12/Wdc - $0.39/Wdc
• Permit/Inspection: $0.06/Wdc 
• Structural BOS: $0.10/Wdc
• Electrical BOS: $0.19–$0.27/Wdc (Varies by inverter option)
• Sales tax varies by location; weighted national average: 6.9%
• 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: 31.8%

^{Source: https://www.nrel.gov/docs/fy19osti/72399.pdf}

<sup>*Figures based on the average 6.2 kilowatt residential solar system.

**Wdc: Watts direct current</sup>

These figures are based on the average 6.2 kilowatt solar system. The cost of each system will vary based on panel manufacturer, inverter option, location and equipment.

Solar System Maintenance Costs

If you’re thinking about purchasing a residential solar system, you’ll also want to factor in maintenance costs. It’s recommended that you clean your solar system once or twice a year.¹¹ Regular maintenance will ensure your panels are working at optimal efficiency.¹² 

On average, households pay $150 for one solar panel cleaning.¹¹ Companies will charge between $3 to $10 per panel based on roof slant, home height and system size.¹¹ Some firms also charge a flat rate fee for a system cleaning. Cleaned at the recommended twice a year, you can spend $300 or more annually on maintaining your panels. This doesn’t include the cost of inspection and repairs. 

Common Solar Panel Repairs and Replacements

While most solar panels can be fixed with professional maintenance, you might need repairs that go beyond routine cleaning. 

Materials for solar repairs  range between $190 to $1,081 depending on the amount of damage to your panels. You’ll also have to factor in labor costs at about $100 per hour. This means your bill could be between $100 to $3,200.¹¹

Here are the four most common repairs and replacements for a home solar system:¹¹

1. Broken Glass Panel: $20-$350 + Labor 
2. Cracked Panel: $100 - $400+
3. Loose Connection: $100+
4. Replacement Inverter: $100-$2,500

As you can see, the cost of repairs and replacements ranges widely. Things like roof steepness, system type and system size will all factor into the total cost of repairs. And if your panels have extensive damage, it will be cheaper and more efficient to replace the panel.¹¹ 

Free Maintenance and Repairs with Sunrun 

When you own your system, you are responsible for the cost of maintenance and repairs. Parts under guarantee should cover specific system failures, in which case you should contact your installer before you begin repairs. But overall, how much you pay to maintain your home solar system can range widely. 

With a Sunrun solar lease, you could save thousands of dollars in maintenance and repairs. 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, and 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.

What Factors Affect Solar System Cost?

 Equipment costs: Solar panels, inverter, mounting hardware, battery (if applicable) and wiring

 Installation and permits: Solar installation, supply chain, permitting and interconnection

 Sales and operational: Monitoring and maintenance, repairs, additional operational and overhead

Your total solar system cost will depend on several factors, including:

Panel Manufacturer

The price of your panels will depend on the manufacturer. In general, higher efficiency panels cost more.⁵ However, the highest efficiency panels don’t necessarily make the most fiscal or practical sense, especially if your roof gets plenty of sun. 

Sunrun partners with LG, a world leader in solar technology and panels. Striking the right balance between quality, efficiency and affordability, LG offers some of the best  solar panels on the market today.¹⁴ 

Location

Another factor in determining your total solar system cost is where you live. Here are the states with the lowest and highest average solar system costs*:

States with Least Expensive Solar Install 

• Florida: $9,198 – $11,970 
• Arizona: $10,332 – $12,096
• Maryland: $10,332 – $12,768
• States with Most Expensive Solar Install
• Rhode Island: $13,104 – $15,792
• New York: $12,264 – $16,044

^{Source: https://news.energysage.com/how-much-does-the-average-solar-panel-instal...}

^{Prices AFTER 30% tax credit5}

Just because a residential solar system is more expensive in one state doesn’t mean it’s any less cost effective.⁵ Local incentives can make a huge dent in solar installation costs even in the most expensive states.

Local Incentives

Local incentives like extra tax credits, rebates, local electricity rates, net metering and even the direction of your roof can help shorten your solar panel payback period and maximize your savings.⁴

To find out how much your solar system will cost, get a free quote and connect with one of our Solar Advisors.

How Can I Reduce Home Solar Energy Costs?

To help build a clean, affordable and reliable energy future, the federal government and many states offer significant incentives, rebates and tax credits that will reduce your home solar system’s cost. Our Sunrun Advisors can guide you through these programs to receive the greatest reductions.

Solar Federal Tax Credits (ITC)

The federal investment tax credit (ITC) can reduce the cost of a solar installation by 30%.¹⁵ And when you install a new solar system, it’s also eligible for the ITC.¹⁶ That means if you purchase a 6 kilowatt system for $18,300, you’ll  pay $12,810 after you receive your tax credit. 

The ITC was initially set to expire in 2007. But thanks to a 2015 extension , you can save 30% on your solar installation through 2019. The ITC is scheduled to drop to 26% in 2020, then 22% in 2021. After 2021, the tax credit is scheduled to end. So now is the time to control your own energy. Learn more about federal solar incentives here.

How to Apply for the Federal Solar Investment Tax Credit

After purchasing a home solar system, you can apply for the ITC by filling out forms 5695 and 1040 on your tax returns.¹⁷ Consult with a tax professional to  understand the credits you’re eligible for. 

Skip the Paperwork with a Solar Lease

The ITC is one of the best solar incentives out there,but filling out paperwork and seeing a return on your investment takes time. That’s why we simplify solar as much as we can. Thanks to Sunrun’s solar leasing options, solar incentives, including the ITC, come in the form of a low, predictable monthly payment. You can also set it and forget it when you lock in 25 years of affordable solar power with just one upfront payment. From paperwork to installation to maintenance, we take care of the rest. 

Solar Incentives by State

Some states offer additional investment tax credits, on top of the federal ITC,for installing home solar systems. These programs enable you to deduct a portion of your system’s cost from your state tax bill, similar to ITC. 

There are also individual state solar rebates. Visit the Database of State Incentives for Renewables & Efficiency (DSIRE) for comprehensive information on solar financial incentives by state. 

Here’s a rundown of incentives available in Sunrun states.

How Much Can I Save When I Go Solar?

Much like the cost of a home solar system, the amount you save will rely on several factors, including:¹⁸

• Region’s sunlight exposure
• Cost of solar system (including battery, where available)
• Cost of electricity
• Energy use
• Local rebates and incentives

^{Source: https://www.nerdwallet.com/blog/finance/save-money-putting-solar-panels-...}

Keeping these things in mind, the average payback period for a residential solar system is between 6 to 9 years, depending on the cost of your system, incentives and savings from your energy bill.¹⁹ 

Buy a Solar System with Sunrun

It’s your home. Make it your energy. Bottom line: there’s no better time to go solar. Whether you’re set on buying a solar system or would like to explore affordable financing options, Sunrun is here to give you the power to choose.  

Why Sunrun?

Your home is far from average and your household electricity demands are unique. Sunrun can customize a residential solar system to meet your energy needs, match your budget, reduce your carbon footprint and contain your long-term energy expenses. As the nation’s largest residential solar, battery storage and energy services company, we’re equipped to provide you with industry-leading service, products and financing options.

Our solar leases offer the financial value and energy freedom you deserve. Join the almost quarter of a million American households who have gone solar with Sunrun.

Whenever you’re ready, our Solar Advisors are here for you. To get started, get your free quote or try out our Cost of Solar App today.