Frequently Asked Questions(FAQ)

How much do solar panels cost?

Most homes require between 17 and 21 solar panels, and costs after credits can range from $16,870 to $23,170. A good rule of thumb is that in 2023, the average cost for a residential solar energy system is $3 to $5 per watt. And, for most homeowners, it will take eight to 15 years to break even on the purchase. 

At what point do solar panels pay for themselves?

The payback period for solar panels can vary depending on various factors such as the cost of electricity in your area, the size of your solar panel system, the amount of sunlight received, and the incentives and tax credits available. However, on average, solar panels typically pay for themselves in eight to 15 years, but some homeowners see a payback in as little as five to ten years.  After that point, the energy produced by the solar panels is essentially free, and you can continue to benefit from reduced or even eliminated energy bills.

How much do solar panels save on monthly electricity bills?

If you install solar panels on your home, you can anticipate saving somewhere between $50 and $150 per month. But, this number can vary greatly based on the size and location of your home, the number of solar panels installed, the energy rates in your area, etc. Keep in mind too that the Federal Investment Tax Credit (ITC) allows homeowners to claim a credit of 26% of the cost of their solar panel system on their federal tax return. Some states also offer rebates, grants, and property tax exemptions for those who switch to solar energy.

Are solar panels worth the cost?

Whether solar panels are worth the investment depends on various factors. This said the cost of solar panel systems has decreased in recent years, making it more attractive for homeowners to switch to solar energy. But, if you’re concerned about the costs yet want to positively impact the environment and reduce the drain on the electrical grid, one thing to consider is the significant benefits of solar power financing, as it can make the upfront installation cost more affordable. 

About the Authors

Ann Schreiber

Written by: Ann Schreiber

Seasoned Copywriter & Content Marketer

Ann has been a marketer and a content writer for over 20 years. She worked for financial institutions such as FICO, Experian, and BlueChip Financial as a director of content and brand marketing.

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