Solar Panels Buying Guide: From Selection to Installation

Solar power has been experiencing rapid growth in recent years. It is estimated that the U.S. installed 20.2 gigawatts (GWdc) of solar PV capacity in 2022 to reach 142.3 GWdc of total installed capacity. That’s enough to provide power to 25 million American homes. And if you are looking to reduce your electrical costs, solar panels should be high on your list of considerations. But where do you start when buying solar panels? We’ve laid it all out in our solar panels buying guide.

Highlights & Key Takeaways

• Installing solar panels is a simple and increasingly popular method to enhance your home's value and energy savings
• There are various available solar panel financing options. 
• The number of solar panels required to fully offset a home's electricity usage typically ranges from 17 to 21 panels
• Homeowners can save between $20,000 and $97,000 over the lifetime of their solar panel system
• Solar panels are designed to last for more than 25 years

Buying Solar Panels: How to Decide if it’s the Right Choice for You

According to ChooseEnergy, the average US home consumes 886 kWh of electricity per month, with an average monthly bill of around $121. Solar panels offer a cost-effective solution to reduce carbon footprint and lower energy expenses. Let's explore the benefits, costs, and considerations of going solar.

How Do Solar Panels Work?

Solar panels use sunlight to generate electricity through photovoltaic (PV) cells. These cells convert sunlight into DC electricity, which an inverter converts into AC electricity. This clean and renewable energy reduces dependence on fossil fuels, promoting sustainability.

What Are the Benefits of Buying Solar Panels?

Investing in solar panels offers several benefits for homeowners. 

• Reduces or eliminates electricity bills, providing long-term cost savings
• Helps to mitigate the impact of rising energy costs and provides a hedge against future increases
• Contributes to a cleaner environment by reducing carbon emissions and reliance on fossil fuels
• Increases the value of a home and offers potential tax incentives, making it a financially rewarding choice for homeowners - according to Zillow, solar panels can increase the appraisal value of a house by 4.1% on average

How Much Power Do Solar Panels Generate?

Solar power generation depends on panel size, efficiency, sunlight, and the environment. A standard panel typically has a 250 to 400-watt rating. A 6 kW residential system can produce 9,000-10,000 kWh annually, meeting a substantial portion of a home's energy needs (EnergySage).

How Much Money Can I Save with Solar Panels?

Solar savings vary based on location, sun exposure, energy consumption, system size, and incentives. Homeowners can save $20,000 to $97,000 over a solar panel system's lifetime. Savings come from lower electricity bills and incentives like tax credits and net metering, accelerating the payback period.

Are Solar Panels Worth It?

Solar panel costs have dropped, making it an attractive option for homeowners switching to renewable energy. Financing options can make installation more affordable, allowing you to embrace clean energy while reducing strain on the grid and promoting environmental sustainability. Explore solar power financing for accessible and long-term benefits.

What You Need to Know Before Buying Solar Panels

Save on bills, reduce grid dependency, and embrace renewable energy with solar panels. Boost home value and energy savings with this popular option. Ensure confidence in your decision by understanding critical factors before buying solar panels.

Is My Home Suitable for Solar Panels?

Solar panels are compatible with various climates, but certain factors can affect their suitability for your home. Consider the age and condition of your roof and any nearby trees that may cast excessive shade. Optimal performance is often achieved with south-facing roofs featuring slopes between 15 and 40 degrees, although other roof orientations can also work well. Be sure to assess the remaining lifespan of your roof and whether it may require replacement soon.

How Many Solar Panels Does My Home Need?

The number of solar panels needed to offset home electricity usage varies (17 to 21 panels on average). Consider factors like annual consumption, panel wattage, and production ratio to determine the exact quantity. Divide system size by production ratio and panel wattage to calculate the precise number required.

What Solar Incentives and Tax Breaks Are Available?

Residential solar power systems give homeowners substantial savings beyond the monthly reduction in electricity bills, typically ranging from $50 to $150. Leaping renewable energy is further incentivized by various rebates and tax credits. These incentives can result in federal, state, and local financial benefits, ultimately putting money back in your pocket for installing a qualifying solar panel system.

The solar tax credit (ITC) offers substantial savings on federal taxes. By utilizing the ITC, you can claim a 30% credit on the total cost of your solar system, decreasing to 26% in the future. Embracing solar power supports sustainability and provides financial advantages through the federal solar tax credit.

On a state level, incentives can vary. Here are a few examples of how tax credits can contribute to your savings based on your location:

• In California, homeowners can take advantage of the federal solar investment tax credit (ITC), which offers a tax credit of up to 30% of the total system cost
• Arizona provides a state tax credit of up to $1,000 for homeowners who install a solar panel system
• In Colorado, homeowners can receive a rebate of up to $1.75 per watt of installed solar capacity, capped at a maximum of $9,000
• Hawaii offers a tax credit equal to 35% of the total solar panel system cost, with a maximum credit of $5,000 per system
• In Massachusetts, homeowners can benefit from a state tax credit of up to $1,000 in addition to the federal ITC
• New Jersey offers a state tax credit of up to $1,000 for homeowners who install a solar panel system, alongside the federal ITC

Where Do I Buy Solar Panels?

When it comes to acquiring solar panels, there are three primary avenues available:

• Engaging with an authorized solar company that maintains certified partnerships with reputable manufacturers in your locality
• Obtaining do-it-yourself (DIY) kits from prominent home improvements retailers such as Home Depot and online marketplaces like Amazon
• Directly purchasing solar panels from the websites of manufacturers themselves

Typically, homeowners and businesses purchase solar panels through established solar companies such as SunPower, REC, and Panasonic. Before selecting the ideal solar panel for your needs, however, consider factors such as efficiency, cost, warranty, and the specific type of panel you are seeking.

• Cost
• Warranty
• Type of panel - monocrystalline vs polycrystalline solar panels
• Efficiency 

How Long Does It Take for Solar Panels to Pay for Themselves?

The timeframe for solar panels to recoup their cost can vary depending on several factors, including:

• Local electricity rates
• Size of the solar panel system
• Amount of sunlight available in your area
• Your energy consumption patterns
• Type and quality of solar panels chosen
• Solar incentives and tax credits applicable in your state

Solar panels typically pay for themselves in eight to 15 years, but some homeowners may achieve a faster payback of 5-10 years. After the payback period, solar energy becomes free, reducing or eliminating energy bills. With a lifespan of 25 to 30 years, solar panels offer decades of ongoing energy savings beyond the initial investment.

Can I Get Financing to Buy Solar Panels?

Most homeowners interested in solar energy do not have the cash to pay for their solar panel purchase, especially when the cost to install solar panels can range from $16,870 to $23,170 after incentives and credits. For this reason, most people look into how to finance their solar panels. And thankfully, there are various solar panel financing options available.

And if you've decided to install solar panels on your home to reap the economic advantages, it's important to proceed at your own pace and not be rushed into a hasty decision. Inform your salesperson that you intend to explore different rates, so don't feel obligated to commit to the initial bid you receive. Even a slight variance in interest rates can significantly impact your loan.

While assessing your financing choices, consider the following:

• Prioritize a low-interest rate to accelerate loan repayment and maximize energy savings
• Thoroughly examine repayment terms to ensure they enable you to make payments without incurring unnecessary interest
• Seek out potential perks, as specific lenders may offer incentives such as discounts for autopay, online account management, or unemployment protection

How to Choose the Best Solar Panel System for Your Home

For many homeowners, installing a solar energy system at home is a wise financial decision. As you assess proposals from various solar companies, you must consider multiple factors influencing your solar savings, including the choice of equipment, available financing options, and the installer you opt for. 

Here are the three key steps to help you choose the best solar panels for your home.

• Evaluate the efficiency of solar panels and compare it with the industry standard range of 16-18%
• Assess the warranty provided by solar panel manufacturers and compare it with the industry average, which typically ranges from ten to 25 years
• Consider the cost of solar panels to their relative efficiency - the most efficient panels may not always offer the best overall value for your investment

Types of Solar Panels

The type of solar panel you choose for your home can impact the number of panels you need. In most cases, however, you’ll need somewhere between 17 and 21 to provide 100% of the electricity needed to power your home.

• Monocrystalline solar panels—These panels have a sleek, black appearance. They are constructed out of a single silicon crystal and are the most efficient type of solar panels and the most expensive. 
• Polycrystalline solar panels—These panels are made from multiple silicon crystals and have a distinctive blue color. They are typically more affordable than monocrystalline panels but are also less efficient.
• Thin-film solar panels—These are made from a thin layer of photovoltaic material deposited on a substrate such as glass, metal, or plastic. They are the least efficient but most flexible and lightweight, making them suitable for certain applications like building-integrated photovoltaics. 
• Bifacial solar panels—These panels can produce electricity from both sides, making them more efficient than standard solar panels. However, they are also more expensive.
• Concentrated solar panels—These panels use lenses or mirrors to focus sunlight onto a small area of solar cells, which can significantly increase their efficiency. However, they require complex tracking systems and are more expensive than standard solar panels.

Solar Panel Efficiency

Solar panel efficiency refers to the conversion of received light into electrical energy, ultimately determining the power output of your system. While higher efficiency is desirable, it often comes at a higher cost. You will want to seek the right balance between efficiency and cost to meet your specific energy requirements without overspending.

Prioritize finding a panel that suits your needs efficiently and cost-effectively, ensuring you achieve the desired energy coverage without exceeding your budget.

Solar Panel Cost

When comparing solar panels, the cost is often the initial consideration for many homeowners. However, while cost is essential when selecting solar panels, it should not be the sole determinant. The least expensive panel may not necessarily be the most efficient or provide the best long-term value. When choosing solar panels, assessing their quality and ensuring a reliable system is crucial, given their extended lifespan of over 25 years. 

Buying vs Leasing Solar Panels

When it comes to financing vs. leasing solar panels, there are fundamental differences to consider. Financing involves taking out a loan to purchase the solar panels outright, giving you ownership of the system. With financing, you can benefit from long-term savings and a potential increase in home value. 

On the other hand, leasing involves agreeing with a solar provider who owns and maintains the system while you pay a monthly lease payment. Leasing can offer lower upfront costs and maintenance responsibilities, but you may miss out on the financial benefits of ownership, such as tax incentives and the ability to sell excess energy back to the grid. 

Be sure to weigh each option's pros and cons and choose the best approach with your financial goals and circumstances.

Best Solar Panel Brands

Choosing the ideal solar panel manufacturer is a crucial decision. Each manufacturer provides different levels of quality and efficiency, influencing both the panel's cost and installation. For instance, renowned manufacturers like SunPower, Panasonic, or LG often offer pricier panels than others. However, higher-quality panels can enhance long-term savings by maximizing efficiency and durability. Therefore, carefully evaluating manufacturers and their offerings is essential to ensure you select the best solar panels for your specific needs.

Solar System Components

The primary components needed include solar panels, an inverter to convert the DC electricity generated by the panels into usable AC electricity, a mounting system to secure the panels in place, and electrical wiring to connect the panels to your home's electrical system. Additionally, you may need a solar battery storage system to store excess energy for later use and a monitoring system to track the performance of your solar panels. 

Solar Panel Mounting Options

When mounting solar panels, there are several options to consider. The most common mounting options include the following:

• Roof mounts are the most popular choice for residential installations, as they utilize the existing roof structure 
• Ground mounts are suitable for those with ample space and allow for optimal panel placement
• Pole mounts are a versatile option that can be adjusted for optimal sun exposure

The choice of mounting option depends on factors such as available space, sun exposure, personal preferences, and the recommendation of your installer.

Solar Panel Installation

Determining the price per watt is crucial when selecting the best solar panels for your home and considering installation costs. The average price per watt for a solar panel system in the U.S. is approximately $2.60, although this figure is subject to change. Factors such as panel type, quality, system size, and installation location can influence this price per watt. 

Most installers base their pricing on the system's wattage, with an average cost ranging from $3 to $5 per watt. While it may appear insignificant, a dollar per watt can accumulate to significant savings or expenses depending on the system's total wattage. For small DIY projects requiring only a few panels, prices typically start at around $200 to $350 per panel or 80 cents to $1.40 per watt.

Solar Panel Warranties

Solar panel warranties typically consist of two parts: the product warranty and the performance warranty. The product warranty guarantees against defects in materials and workmanship, usually ranging from 10 to 25 years. The performance warranty guarantees that the panels will maintain a certain level of energy production over a specific period, typically 25 years. 

Solar Panel Maintenance

Regular maintenance is essential for ensuring optimal performance and longevity of your solar panels. Weather conditions, dust, debris, and shading can affect their efficiency. Cleaning your panels regularly, either with water or a gentle cleaning solution, helps remove dirt and grime that may accumulate over time. Be sure to follow manufacturer guidelines and seek professional assistance when needed can help ensure the longevity and efficiency of your solar panel system.

A Step-by-Step Guide to Buying Solar Panels

Thinking of going solar? These summarized tips for consumers going solar, provided by the Office of Energy Efficiency & Renewable Energy, might help.

• Evaluate your home's solar potential. Assess your home's energy needs and evaluate your roof's suitability for solar panel installation. Consider available sunlight, shading, roof condition, and structural integrity.
• Research and select a solar panel company. Research local solar panel companies and gather multiple quotes to compare their offerings. Consider factors such as reputation, experience, certifications, warranties, and customer reviews.
• Financing and incentives. Explore financing options like the best solar loans, leases, power purchase agreements (PPAs), or cash purchases. Investigate available incentives, rebates, and tax credits at the federal, state, and local levels to maximize savings.
• Installation and permitting. Work with the chosen solar panel company to finalize installation plans and obtain necessary permits. Coordinate with the company for scheduling and ensure compliance with local regulations and utility requirements.
• System activation and monitoring. Once installed, coordinate with the company to activate your solar panel system and connect it to the electrical grid. Learn to monitor system performance, understand the metering process, and access available warranties.
• Enjoy solar energy savings. Start benefiting from clean, renewable energy and enjoy reduced electricity bills. Monitor your energy production and consumption to maximize savings and environmental impact.

Final Word

Choosing solar panels for your home is a crucial decision. Consider factors like efficiency, cost, warranties, installation, and maintenance. With the right system, you can harness solar power, save money, and contribute to a sustainable future.