Solar Panels: How Much Do They Cost and Are They Worth It?

Written By Alla Levin
August 05, 2021

Solar Panels: How Much Do They Cost and Are They Worth It?

Are you still considering whether solar panels are worth it? More and more people are investing in solar panels. It continues as the renewable energy trend continues. Federal tax credits and the decrease of solar panel prices are also prompting people to go solar. However, you might still feel discouraged because of the upfront costs. In this guide, we’ll discuss solar panels’ decreasing price trend. Read on and discover whether it’s worth your investment:

Decreasing Cost of Solar Panels

In 2010, the cost of solar panels for average-sized residential properties was $40,000. Today, prices for solar panels are at their lowest. The price for the same unit dropped to $20,000.  The average cost of installation per watt is $3 to $5. Meanwhile, a utility for solar power costs around $16 to $35 per megawatt-hour. 

The price can even go lower because of federal policies like the Solar Investment Tax Credit. Under federal policy, homeowners opting for solar energy systems from 2020 to 2022 will get a 26% tax credit. For instance, you’re looking to buy a $20,000 system, and you get a federal credit of $5,200 under the policy.

These policies help gave way to 100 gigawatts of solar capacity systems installed in the U.S. These are enough to provide solar power to 18.6 million homes.  However, the federal tax credit will drop to 22% after 2022. It’s best to call a solar panel company as soon as possible. Otherwise, you’ll only get a tax credit of $4,400 for a $20,000 solar power system by 2023.

Most states offer their tax credit and rebate policies too. Residents with solar energy systems can claim these financial benefits through cashback on the installation or credit on local taxes. Tax credit on solar systems varies per state. South Carolina has the highest credit. In this state, you can get up to 51% tax credit on the net cost. 

Are Solar Panels Worth It?

It depends on several factors like the amount of energy you consume. If you usually have a high electricity bill, investing in renewable energy like solar power. If you live in an area that receives enough sunlight, such as Indiana, visit Set up an appointment for solar panel installation. The energy costs savings will pay in dividends.

Solar panels are also very durable, lasting for at least 20 years. If you need to sell your home and move, your installed solar panels are still worth your money. After all, it helps increase your home’s value.

Install a Solar Panel System On Your Home Today

To sum up, the cost of solar panels greatly decreased over the past decade. You can further bring the cost down with tax credits. It’s more than enough reason to invest in solar panels. However, you must find a reputable solar energy company to maximize your gains. Are you looking for more ways to save on energy bills? Would you please read our other guides and expand your knowledge now?

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