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Are Solar Panels Expensive?

Are Solar Panels Expensive?

by | Jun 30, 2021

Are solar panels expensive? That’s easily the most common question any homeowner looking to own their power with solar asks.

The great news is that, as solar tech becomes more efficient, the cost of solar has decreased a whopping 90% in just ten years! That means that solar is one of the most cost-effective ways to power your home with clean energy.

But that doesn’t precisely answer the question of whether or not solar energy systems are expensive for most homeowners.

Let’s take a look at the answer to that question.

What’s the Cost of Investing in Solar Panels

It’s best to think of a solar panel system as an investment for your home. After all, solar panels today are designed to last between 25-30 years

The cost of the equipment and installation for your homes depends on the size and slope of your roof, as well as the design of your system. Not every home or homeowner uses energy the same way, so your system should be designed after a full site survey and assessment of your current energy usage habits.

The best way to determine the cost of solar is to reach out to a trustworthy solar installer for a free design consultation and estimate. 

They’ll be able to run the numbers needed to figure out how much you can save with solar based the degree of energy a system on your roof can generate, the rate at which the power company in your area pays credits for net metered energy, and what the cost-per-kilowatt is for energy where you live.

The costs included in a grid tied solar panel energy installation are:

  • The equipment (panels, inverters, and racking to attach them safely to your roof or ground-mount them).
  • Professional electricians to correctly wire and connect the solar energy system into your home’s grid and to the electrical grid in your area.
  • Cost for the team that surveys, installs, and monitors your system.

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Is Professionally Installed Solar Too Expensive?

Solar panels are a great option for homeowners who want to save on energy costs long term and invest in their property value. Homes with solar regularly see their value increase by 4% or more!

Even better, in states like Oregon, solar is exempt from being used to assess property taxes. In Montana, solar panels are similarly exempt from property taxes. In Iowa, while there isn’t a property tax exemption, the state does exempt solar from the 6% sales tax. On a system that costs $25,000 that’s a savings of $1,300!

Obviously, states are making solar an even better investment for homeowners. But that doesn’t mean that every type of solar energy system has the same value.

Professionally installed solar means you’re not only going to get a smoother experience with less stress, but your system should come with warranties and guarantees. 

For instance, if you go solar with Purelight your solar energy system will have a 10 year workmanship guarantee, 20 year panel warranty, and 25 year energy production guarantee. 

Having your system backed by guarantees and warranties is important to ensure that you don’t have to worry about what happens if a panel gets damaged, but also so that your homeowners insurance will properly cover the system as part of your home’s energy system.

Cost Versus Savings to Invest in Solar

Making the switch to solar energy may seem like a large investment, but when a homeowner considers the savings that come from reduced energy use, the cost of investing in solar doesn’t feel quite so large.

According to EnergySage, the average homeowner in Oregon, Iowa, or Montana spends just shy of $1,500 a year on electricity.

That amount is likely going to continue rising, as power companies across the country continue hiking their rates up more than 4%. As an investment, the cost of solar decreases in proportion to the amount of cost increase you avoid by owning your energy rather than renting it.

Solar Is Less Expensive than Renting Your Energy

So is solar expensive compared to continuing to rent your energy?

If a homeowner pays $125/month for energy, over 25 years that winds up being $37,500 (before we adjust up for the continued rate increases each year). Let’s say they go solar with a system that wipes out their power bill and costs them roughly $29,450.

Until the end of 2022, homeowners investing in solar can recoup 26% of the costs to install solar with the Solar Investment Tax Credit. So that $29,450 reduces to $21,793. 

Already, just by going solar you’re saving nearly $16,000 in power costs over the system’s lifetime!

Save Even More with Solar from Purelight

Still concerned solar is too expensive?

With Purelight Power’s solar savings program, you can get your solar panel system installed for $0 down! We make owning your power and investing in solar easy and affordable.

Find out now if your roof qualifies for solar with no money down.