In the first quarter of 2022, 3.9 gigawatts of solar capacity were installed in the United States, bringing the total installed capacity to 126.1 gigawatts. In the first 3 months of the year, solar accounted for half of all new electricity-generating capacity added across the country. Clearly, the solar industry in the US is booming—and there are many good reasons why homeowners in particular are making the switch to solar.
If you are thinking about installing solar on your property, it’s worth understanding solar energy installation cost and whether or not the initial investment is worth it in the long run. In this blog post, we will look at the average cost of installation and savings potential to give you the information you need to make an informed decision.
How Much Do Solar Panels Cost?
In 2022, the average cost to install a solar energy system in the US is between $18,000 and $20,000. Note that this is before the federal solar tax credit and any available state incentives are factored in. The federal tax credit currently stands at 26%, which is worth several thousand in savings for homeowners.
It can be difficult to give an exact cost of solar installation, given that there are a number of factors to consider. These include:
- The size of the solar system
- Your property’s location
- Equipment type and manufacturer
We recommend that you opt for a good quality solar system (Tier 1). Even though this will increase the upfront cost, these panels will generate more solar energy in the long run and be a better overall investment.
How Much Do Solar Panels Save?
As with the above information, the exact savings potential depends on a range of factors. These include location, energy usage, and prices offered by local solar companies.
Generally, homeowners who install a 6 kW solar system in the US can expect to see savings of around $1,500 per year on their electricity bills.
Location is a big factor in determining potential solar savings. Homes in the southwest of the country, for example, receive a greater amount of sunlight compared to homes in the northeast. This will affect the amount of solar energy that a system is able to create.
Click here for more interesting info on solar savings and to learn about how your household can benefit from making the switch to solar.
Solar Energy Installation Cost: The Bottom Line
The bottom line is that the potential savings of solar are very real and are absolutely worth the upfront costs. Solar panels have a long lifespan of in excess of 25 years. We recommend that you speak to a reputable solar company to find out how much you stand to save by installing a solar system on your property.
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