In recent decades, homeowners across the US have looked for ways to live greener lifestyles. If you’re one of those homeowners, you’ve probably considered investing in solar energy in 2022.
If so, you’re not alone. When people think of going green, solar energy is often the ideal they imagine. However, homeowners often hesitate because of one question: “How much does solar cost?”
If you want the answer to “how much is solar energy,” you’re in luck! In this solar energy price guide, we’ll explore the factors that can affect solar cost. So, without further ado, let’s get started!
How much does solar cost? Examining the average
On average, solar panel installation usually falls within a spectrum of $10,000 to $27,000. As you may notice, that’s quite a range! Let’s break it down a little to get a better understanding of that price difference.
First, as with many other products, solar panels have varying ranges of quality. A more low-end system may cost as low as $10,600. A more median product jumps to around $16,000, give or take a few hundred dollars.
Finally, there are high-end lines that could cost as much as $26,000-$27,000. While these costs are the average, several other factors can affect how much you pay. We’ll discuss these in the sections below.
Determining a system’s wattage
A critical factor in determining how much solar energy costs is the wattage of the system. Different solar panel systems may have varying watt ratings.
These watt ratings indicate how many kilowatts of electricity a solar panel system can generate. When you purchase a solar panel system, the idea is to get one that can offset your energy bill.
On average, most households use approximately 900 kWh each month. If you receive at least four peak-sun-hours each day and have a system rated at 300 watts, your system can generate that amount.
However, higher-rated systems cost more money. Spend some time investigating what type of system would best serve your house.
How to save money on solar with tax credits
You may not like the prospect of paying ten grand or more on solar panels. After all, that’s an expensive purchase! However, these prices may not be the final cost you pay.
In 2021, the federal government offers a 26% solar tax credit that reduces how much you pay for your system. Due to a recent act of Congress, this tax credit will decrease to 22% in 2022.
A 22% tax credit is a significant deduction from the final price. However, other tax credits can lower your cost as well.
In many states, there is an additional state credit. The range of this credit may vary. Utah, for example, offers a 25% tax credit.
If you live in Utah, this tax credit can tremendously benefit you when you buy Blue Raven solar panels. Other states, such as Texas, also offer excellent tax credits.
Find your best solar energy system today
If you’re wondering, “how much does solar cost?” We hope this guide helped! By considering these factors, you can find the best system for you that fits your budget. So, start looking for your system today!
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