Your Handy Guide to Solar Panel Installation Cost in 2022

Solar Panel Installation Cost

The world is moving towards renewable energy sources very fast, and one important source is the solar energy, which can be harvested using solar panels. It is only natural for anyone to wonder about solar panel installation cost to see how financially feasible the switching to solar energy is.

Most governments and local authorities offer various subsidies and financial assistance for homes and businesses seeking to use solar energy for power. However, it is still valid to know how much solar panel installation cost is, and this article is all about that.

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It is important to note that the costs you will see in this article include the 30% tax credit or federal solar rebate and reflect installation costs from solar contractors. Your total costs will depend on the installation location, other equipment necessary such as inverters, and experience of the installer.

Solar Panel Installation Cost

In order to power an entire house, you will most likely need a solar panel system of 6kW to 12kW, which means the solar panel installation cost is estimated to be something between $10k and $27k after tax credit in 2021. You should know that doing this will save you something from $500 to $2,000 annually on your electricity costs, and the solar panel payback period is 7 to 12 years on average.

rooftop - Solar Panel Installation Cost

When you decide to purchase solar panels, you can count on the fact that most of them would last for half a century with 25 years of warranty in addition to returning your investment after 8 years. You can say that power generation with solar panels is roughly 30% cheaper than utility electricity; therefore, based on where you will install the solar panels and the local cost of electricity, you could save between $10k and $30k in a matter of 20 years.

Approx. Solar Panel Installation Cost
National Average Cost $16,000
Minimum Cost $3,500
Maximum Cost $35,000

If you are considering switching to solar power, multiple factors play a role in your total expenditures. The total solar panel installation cost depends on location, your power demand, panel type, inverter and other equipment, labor costs, inspection and permits, and tax credits. As a rule of thumb, your total solar panel installation cost is comprised of:

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  • 30% – the panel, inverter, and parts
  • 15% – labor
  • 20% – balance of system
  • 15% – inspection and permits
  • 20% – operational

Now, let us get a clearer picture of solar panel installation cost by categorizing cost estimation based on your home size, available brands on the market, and location.

Solar Panel Installation Cost Based on Home Size

To power your home using solar energy, solar panel installation cost per square foot of your home would be from $4 to $10.

Approx. Solar Panel Installation Cost Per Square Feet
Home Size (SF) Average Cost
1,000 $4,750 – $6,000
1,500 $7,000 – $9,000
2,000 $9,500 – $12,000
2,500 $11,750 – $15,000
3,000 $14,250 – $18,000

Average Solar Panel Installation Cost Based on Brand

As mentioned earlier, most home applications require solar systems of 6kW to 12 kW. Despite the fact that most solar panel manufacturers try to keep their prices close to each other to stay competitive, there are differences between panels produced by different manufacturers as can be found in the below table.

Avg. Solar Panel Installation Cost by Brand (Ascending)
Manufacturer Per Watt 6 kW System 12 kW System
Mission Solar Energy $1.79 $10,740 $21,480
Axitec $1.83 $10,980 $21,960
LONGi Solar $1.88 $11,280 $22,560
SolarWorld $1.94 $11,640 $23,280
Canadian Solar Inc. $1.96 $11,760 $23,520
Yingli Solar $1.96 $11,760 $23,520
SolarTech Universal $1.97 $11,820 $23,640
Trina Solar $1.97 $11,820 $23,640
Heliene $2.00 $12,000 $24,000
Hyundai $2.01 $12,060 $24,120
JA Solar $2.01 $12,060 $24,120
Hanwha Q CELLS $2.02 $12,120 $24,240
Seraphim Solar $2.05 $12,300 $24,600
Peimar Group $2.05 $12,300 $24,600
S-Energy $2.06 $12,360 $24,720
Winaico $2.07 $12,420 $24,840
Silfab Solar $2.08 $12,480 $24,960
Astronergy $2.10 $12,600 $25,200
REC Group $2.12 $12,720 $25,440
Panasonic $2.17 $13,020 $26,040
LG Solar $2.18 $13,080 $26,160
Solaria $2.21 $13,260 $26,520
Renogy Solar $2.25 $13,500 $27,000
CertainTeed Solar $2.27 $13,620 $27,240
JinkoSolar $2.28 $13,680 $27,360
Phono Solar $2.30 $13,800 $27,600
SunPower Corporation $2.39 $14,340 $28,680
Tesla $2.72 $16,320 $32,640
RGS Energy $2.89 $17,340 $34,680

Solar Panel Installation Cost Based on Location

Different states have different electricity costs, and this will influence your solar panel cost as well. Despite prices are different, they are affordable. The prices, including the 30% federal solar rebate, are tabulated below in an ascending order for all the states across the country.

Avg. Solar Panel Installation Cost by State (Ascending)
State Per Watt 6 kW System 12 kW System
Tennessee $1.64 $9,810 $19,620
North Dakota $1.68 $10,080 $20,160
Kansas $1.78 $10,650 $21,300
Florida $1.79 $10,716 $21,432
Virginia $1.90 $11,382 $22,764
Maryland $1.92 $11,484 $22,968
Oregon $1.92 $11,514 $23,028
Texas $1.95 $11,700 $23,400
Washington $1.95 $11,694 $23,388
North Carolina $2.00 $12,006 $24,012
Georgia $2.03 $12,150 $24,300
Nevada $2.03 $12,144 $24,288
Delaware $2.04 $12,276 $24,552
Ohio $2.04 $12,240 $24,480
Louisiana $2.05 $12,312 $24,624
California $2.06 $12,342 $24,684
New Jersey $2.06 $12,324 $24,648
Missouri $2.07 $12,390 $24,780
Maine $2.10 $12,600 $25,200
Montana $2.10 $12,606 $25,212
Arizona $2.12 $12,702 $25,404
Utah $2.12 $12,702 $25,404
Idaho $2.13 $12,738 $25,476
South Carolina $2.15 $12,918 $25,836
Massachusetts $2.16 $13,002 $26,004
Washington D.C. $2.16 $12,984 $25,968
Colorado $2.18 $13,020 $26,040
Vermont $2.19 $13,098 $26,196
Minnesota $2.19 $13,122 $26,244
Pennsylvania $2.20 $13,206 $26,412
New York $2.22 $13,332 $26,664
Connecticut $2.24 $13,494 $26,988
Michigan $2.25 $13,476 $26,952
New Hampshire $2.26 $13,548 $27,096
Rhode Island $2.26 $13,572 $27,144
Illinois $2.27 $13,620 $27,240
Wisconsin $2.27 $13,578 $27,156
Indiana $2.28 $13,692 $27,384
Iowa $2.29 $13,734 $27,468
Nebraska $2.31 $13,860 $27,720
Mississippi $2.37 $14,190 $28,380
New Mexico $2.38 $14,232 $28,464
South Dakota $2.41 $14,430 $28,860
Alabama $2.44 $14,610 $29,220
Arkansas $2.58 $15,480 $30,960
Wyoming $2.59 $15,510 $31,020
Oklahoma $2.61 $15,660 $31,320
Alaska $2.68 $16,080 $32,160
Kentucky $2.70 $16,170 $32,340
West Virginia $2.78 $16,650 $33,300

 

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The Cost for a Single Solar Panel

Type, energy efficiency and size are factors that play a role in the cost of a single solar panel.

For home solar systems, if you purchase in bulk, as solar companies do, you will spend averagely about $0.75 per watt of panel, and about $1 per watt of panel otherwise.

Approx. Solar Panel Cost for Residential Applications (Only the Panel)
No. of Panels System Size Average Cost
4.2 kW 14 Panel System $2,500 – $4,250
4.8 kW 16 Panel System $3,000 – $4,750
5.4 kW 18 Panel System $3,250 – $5,500
6.0 kW 20 Panel System $3,750 – $6,000
7.2 kW 24 Panel System $4,500 – $7,250
8.4 kW 28 Panel System $5,250 – $8,500
9.6 kW 32 Panel System $6,000 – $9,750
10.8 kW 36 Panel System $6,750 – $10,750

For commercial solar systems which range from 10kW to 2MW the average cost per watt of panel would be about $1.85. For systems with powers above 2MW the average cost could go as low as $1.05 per watt of panel. It is important, however, to note that tax credits and rebate programs will return almost half of the commercial solar panel installation cost within the first year.

Approx. Solar Panel Cost for Commercial Applications (Only the Panel)
System Size Average Cost Before Tax Credits
25 kW $43,500 to $56,000
50 kW $87,500 to $113,000
100 kW $175,000 to $225,500
250 kW $437,000 to $563,500

Solar Panel Installation Cost: Q&A

  • How much is the solar panel installation cost for residential applications?

For residential use, an average solar panel installation cost of $2 to $4 per watt of system power is to be expected.

  • How much is the solar panel installation cost for utility-scale applications?

For system sizes greater than 2MW, the cost per watt of system is between $1.06 and $1.36 before any tax credits and federal rebates.

For further explanation and details about solar panel installation cost, you can see the video here.

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Ramzy
Ramzy
Linquip Content Managment Team

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