How Much Do Solar Panels Cost? (2023 Update)

Do you know that by going solar, you can potentially save thousands of dollars in electricity bills every year? Since the temperature of the earth is increasing every year, global warming has become a point of concern for everyone. By installing solar panels, you can not only save money but also reduce the amount of carbon footprint significantly. 

If all of this interests you in installing solar panels at your home, then you also need to know that you will have to spend quite a large sum which is primarily related to the solar panel cost. To give a preliminary estimate, the installation cost for a basic solar system can get up to $20000. 

Nevertheless, people like us who have already installed solar panels in their homes have been able to balance the books within just six or a maximum of ten years. Your break-even point for the solar panel cost will vary according to your choice of payment, the size of your residential property, and the cost of electricity in your region. 

In this article, we will discuss how much solar panel costs you will have to pay in order to install a solar system in your residence in 2023 and other important factors associated with the solar panel cost

Average solar panel cost in 2023

As per the information released by the Center for Sustainable Energy, installing a 5 kW solar system (which is a compact system to support a small household energy usage) can cost you around $15000 to $20000. As for the solar panel installers, the bill for their services depends on the size of the system. The average price in the United States is $3 to $5 per watt.

If you are interested in installing a better system like me, the solar panel cost can increase to $35000. The pricing of the solar panels also depends on the region of your residence. Some states also offer incredible incentives for installing solar panels in your home so that you also take advantage of the same and reduce your overall solar panel purchase and installation cost. 

Types of solar panels available

Solar panel costs can dynamically fluctuate depending on the type of solar panel you are thinking about purchasing. There are several different types of solar panels available depending on the quality of the material used. 

High-quality solar panels have a better lifespan and provide more efficiency to the users. You will also need less roof space if you are using high-quality solar panels. Let us check out the different types of solar panels available in the market:

Types of solar panels

Polycrystalline solar panels

Although the average output of polycrystalline solar panels remains between 15% to 17%, they are cheaper than monocrystalline solar panels. If you have a huge amount of roof space at your residence, then you can also opt for these types of solar panels. 

However, if the temperature in your region is high, then using polycrystalline solar panels is not recommended because they don’t function adequately under high temperatures. The cost of these solar panels is between 70 cents and $1 per watt.

Monocrystalline solar panels

Monocrystalline solar panels are also famous as mono-panels. They are created using the highest-grade silicon. These solar panels can offer you the most amount of output. The efficiency level of these panels is more than 20%. If you are using monocrystalline solar panels for your rooftop, then you won’t require much roof space due to their high-efficiency levels. 

On average, these highest-quality solar panels can last at least 25 years, and the average solar panel cost per watt can fluctuate between 32 cents and $1.50.

Thin-film solar panels

If you want to use solar panels for your RV, boat, etc., then you should consider using thin-film solar panels. The efficiency rate of these types of solar panels can shift between 6% to 10%, and in terms of durability, they cannot be compared to monocrystalline and polycrystalline solar panels. 

The sole reason why people prefer them is because they are extremely cheap, and their average cost per watt remains between 43 cents to 70 cents. You should not use this kind of solar panels for your home; instead, utilize them for small solar projects. 

Average solar panel cost in different states of America

The average solar panel cost in the United States can differ according to the region or state you are living in. Moreover, due to the federal solar tax credit and other rebates, you will be able to save a lot of money on solar panel installation. Let us have a look at the average solar panel cost in different states of the US:

Name of the StateAverage cost per wattAverage solar panel cost of 6kW solar systemAverage solar panel cost of 10kW solar systemFederal tax credit value 2023 (for 10 kW system)
New York$3.48$20,880$34,800$10,440
New Jersey$2.95$17,700$29,500$8,850
South Carolina$2.89$17,340$28,900$8,670
New Hampshire$3.61$21,660$36,100$10,830
New Mexico$3.39$20,340$33,900$10,170
Rhode Island$3.61$21,660$36,100$10,830
North Carolina$3.04$18,240$30,400$9,120
West Virginia$2.92$17,520$29,200$8,760
Washington D.C.$3.50$21,000$35,000$10,500

Solar panel cost influencing factors

There are multiple factors that can effectively influence the cost of solar panels at your home. Let us check them out in detail:

Solar panel type

As we have already mentioned in this article, there are a total of three types of solar panels available in the market, and their pricing also differs because of their features, efficiency, and quality of the materials used to produce the solar panels. For example, if you want to purchase monocrystalline solar panels, then you will have to pay a significantly higher price than thin-film solar panels.

For residential usage, polycrystalline solar panels cost $0.90 to $1 per watt, and monocrystalline solar panels cost $1 to $1.50 per watt. The pricing of thin-film solar panels is between $1 and $1.50 per watt.

Solar panel manufacturing companies

One of the fundamental factors behind solar panel cost is its manufacturing company. The price of solar panels can vary depending on the company you have selected for the installation of solar panels at your home. You should compare the prices of the best companies and look into the additional cost and benefits you can receive from them. 

The size and weight of the solar panels

The price of solar panels is dependent on the overall size and weight of the solar panels. If the surface area of the solar panels is big enough, it will be able to generate more energy than the average-sized solar panel. Therefore, you will require less roof space because you don’t need to install a huge number of solar panels in your home. 

When is the best time to install solar panels?

If you want to know about the best time to install solar panels, then we would recommend you install a solar system in your home during winter. In the winter season, the demand for solar panel installation is minimal, and the installation cost will also remain less than the usual amount. 

Even if you are staying in a cloudy region, you can easily utilize the newly installed solar system during winter. Moreover, you also won’t have to wait for a long time because the number of solar panel installation jobs during this time is extremely limited. 

Final words

If you want to reduce your electricity bills and save a lot of money for the long term, then we would recommend you bear the solar panel cost because it will be worth your investment. In case you want to find out how much money you will be able to save by using solar panels, you will have to check out your yearly electricity consumption and the annual utility bill. 

The numbers will be different because the rate of electricity in every region is different, but you will definitely save a lot of money through the usage of solar panels. All you have to do is to install the correct solar system in your home and manage it efficiently.

Frequently asked questions

Do solar panels need maintenance?

Yes, you may have to maintain your solar panels from two to four times a year. In the meantime, you should also check out the instruction manual provided by the solar panel to receive accurate information regarding solar panel maintenance.

Remove all the dust and debris from your solar panels because they will eventually decrease the efficiency of your solar panels. Also, check out any kind of crack or structural damage while you are at it.

How much will solar energy cost in 2030?

It is expected that with technological advances, the cost of solar energy will decrease over time. By 2030, it is estimated that the solar cost will reduce to $0.13/W from the current cost of $0.35 – $0.40/W.

How long do solar batteries last?

If you are using solar batteries at your home, then you can expect them to last between 5 to 25 years. Typical lithium-ion batteries come with a lifespan of around 15 years, but depending on the maintenance, installation, cycle life, depth of discharge, etc., they may last longer than anticipated. 

Will solar panels last 25 years?

If you are using top-quality solar panels, then you can expect them to last at least 30 to 35 years with proper maintenance. With further technological advancements, both the efficiency and longevity of solar panels are expected to increase further.

Are 100% efficient solar panels possible?

No, creating 100% efficient solar panels is not possible, even if you are using the perfect material to manufacture the solar panels. Solar panels are unable to soak up all the energy from the entire solar spectrum. Solar panels also receive different wavelengths of light that they are unable to process, which is why these lights either get reflected or lost in the process. 

In this article, we have discussed the average cost of solar panels in the United States. Furthermore, we have provided detailed information on the actual prices of 6kW and 10kW solar panels in different states, along with the federal tax credit value they will receive from the government. The FAQs have been taken from the ‘People also ask’ section of Google. 

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