cost to add solar panels to house

Our team has researched and reviewed the Cost To Add Solar Panels To House to help you come up with a better buying decision. We’ve also put up a solar panel cost for home guide with the features you can consider when buying solar for indoor or outdoor use.

Cost To Add Solar Panels To House

AVERAGE COST:$10,085 – $28,000

Solar panel installation costs around $18,500 for a 6kW solar panel system for a 1,500 square ft. home and the price per watt for solar panels can range from $2.50 to $3.50. Residential solar panels are usually sized at 3kW to 8kW and can cost anywhere from $9,255 and $24,552 in total installation costs. See average solar panel system costs by size (before tax credits or discounts).GET FREE QUOTESLow End$10,085Average$19,043High End$28,000SOLAR PANEL INSTALLATION COSTS BY SIZE

Solar Panel System SizeAverage Solar Installation Costs
2 kW$6,015
3 kW$9,225
4 kW$12,035
5 kW$14,893
6 kW$18,500
7 kW$21,008
8 kW$24,552
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What Affects Solar Panel Installation Costs? 

These are a few main factors that will determine exactly how much you’ll spend to install solar panels on your home that we list out below:

  • Your home’s average utility costs and energy usage
  • Your rooftop’s solar potential – amount of sun it receives yearly
  • The average local cost for a solar panel system in your area
  • The average labor costs and demand in your area
  • Local incentives and rebates you could receive.

The Department of Energy expects lower solar installation cost trends to continue and estimates that one million plus homes will have solar panels installed by 2020. Solar costs dropped dramatically in the last few years when the Chinese government influenced the worldwide solar market by pouring low-cost financing into the sector which boosted solar panel manufacturing more than ten-fold.

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What Size Solar Panel System Do I Need?

The average home uses 905 kWh per month or around 10,850 kWh per year in electricity. The average sized home with a decent amount of sunshine could install a 5 kW to 6 kW solar panel system for their home to help reduce utility bills. You may want to learn about your sun number score for solar based off of your home’s location and average sunlight exposure discussed below.

The larger the solar panel system you install for your home, the lower the cost per watt will be. The cost per watt including solar panels, parts, labor costs, permits, and overhead is between $6 a watt and $8 a watt.

The money you save on your electricity bills can more than earn back your initial installation costs in 7 to 20 years. There are plenty of solar rebates and incentives available from both the government and local energy providers, which can significantly speed up your return on investment and give you an accurate solar panel cost. You may also be able to participate in selling excess electricity from your solar panels by net metering in your area.Ready to start


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solar panel installation cost breakdown

There are a few things you’ll want to add in to your solar energy system’s total cost to get the most accurate price estimate. Here are a few additional factors that will

  • Labor costs – Local labor costs for solar installation will change depending on your area and the average costs solar installers charge in your area.
  • Installing solar mounts – The costs to install the racks that hold your residential solar panels will effect cost as well. There are a few options for solar mounting.
  • Installing solar inverters – A solar inverter will need to be installed to transform direct current (DC) power from the panels into the alternating current (AC) you can use in your home
  • Other costs: There may also be costs for any local permit fees, inspection fees, and taxes on the solar panels.

With the fall in solar panel prices, these “soft solar panel costs” now constitute the bulk of what you pay when you install solar on your home. Fortunately, as more people adopt solar power, soft costs have fallen as a result—a trend that’s very likely to continue in the future. It is always smart to find local solar installers in your area to discuss the average costs associated with solar installation in your neighborhood.

An analysis by the federal government’s National Renewable Energy Laboratory (NREL) discovered that installed prices have fallen at an average annual rate of 13% to 18%.


How Many Solar Panels Will You Need?

To know how many solar panels you will need, you will want to determine how much electricity you use in your home and the solar panel types installed. The average house in the United States uses about 900 kilowatt hours (kWh) a month—roughly 11,000 kWh a year. You can easily calculate your actual usage by looking back at your electricity bills.

  • As a general rule of thumb, a 3-kWh solar panel system will generate about 3,600 kWh to 4,800 kWh per year. A 5-kWh system produces about 6,000 to 8,000 kWh per year, and a 10-kWh system can produce about 12,000 kWh to 16,000 kWh per year.

Depending on the size of the system, the solar panels cost would be between $4,000 and $16,000. Add in another $3,000 to $10,000 for other necessary components such as racks for the panels, wiring, solar inverter costs, and the total solar panel installation cost would now be closer to $20,000.

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