Cost of Solar

Average cost of residential solar keeps falling

Solar panels are rapidly spreading over American rooftops. And as the cost of solar continues to fall, it’s no surprise that residential solar systems are installed every 100 seconds in the United States.¹ Residential solar costs are at their lowest in over 30 years. More affordable than ever, today’s residential solar panels feature technology advances that maximize power production.

What factors affect solar system cost?

A single solar panel costs between $2.67 and $3.43 to buy and install.⁴ The price of the whole system is based on its capacity, measured in watts. How big a system you need will be based on how much energy you use, your roof’s sunlight exposure and panel efficiency.

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-...

The average payback period for a residential solar system is between six to nine years, depending on the cost of your system, incentives and savings from your energy bill.¹⁹

Here’s a closer look at some of the things that determine your system costs.

Installation

Here’s a breakdown of installation costs, based on findings from the National Renewable Energy Laboratory:¹⁰

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.

Maintenance

Maintenance of solar panels ranges from routine cleaning to major repairs. On average, households pay $150 for one solar panel cleaning.¹¹ Companies charge between $3 to $10 per panel based on roof slant, home height and system size.¹¹ Some firms charge a flat rate fee for a system cleaning. If you clean your system 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 $3,000.¹¹

The four most common types of damage to a home solar system and the costs of repairs area:¹¹

Like cleaning costs, the amount you pay for repairs is affected by things like roof steepness, system type and system size. And if your panels have extensive damage, it may be cheaper to replace them.¹¹

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. A Sunrun solar lease, lets you 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.

Panel manufacturer

The price of your panels will depend on the manufacturer. 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

For a given manufacturer, higher efficiency panels cost more.⁵ The good news is that the highest efficiency panels aren’t always needed, especially if your roof gets plenty of sun.

Your state 

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

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

Prices after 30% federal solar tax credit ⁵

Just because a residential solar system costs more in a given 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.

Incentives

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

Federal solar tax credits

The federal solar tax credit can reduce the purchase and installation costs of a new home solar system. Currently, the federal solar tax credit gives you a dollar-for-dollar reduction against your federal income tax equal to 30% of the final cost of solar energy systems you install on your home. Starting in 2020, the tax credit will step down to 26%, and then again to 22% in 2021. After 2021, the tax credit for residential solar ends.^15,16  

In the meantime, you can apply for federal solar tax credits by filling out forms 5695 and 1040 on your tax returns.¹⁷ Sunrun is always available to help you simplify the process. We will make sure that your bottom-line expenses come in the form of a low, predictable monthly payment. Learn more about federal solar incentives.

Local solar incentives

In addition to the federal solar tax credit, some states offer additional tax credits 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 federal solar tax credit.  Individual state may also offer solar rebates.