Solar Panel Cost
One of the most important questions from people looking to acquire solar panel systems is how much do they cost?
Solar panel cost and installation vary based on their make and model. Labor costs also vary depending on the style of your roof, conduit attic runs, backup power, and the location of your residence or business.
That’s why Freedom Solar offers a free initial consultation and quote estimate based on your particular solar energy needs. On average, the cost of solar panels for our customers is just over $42,000 for an 8 kilowatt (kW) residential SunPower system — this is before local rebates and tax incentives come into effect based on your city and state.
Total solar power system cost includes parts (solar panels, inverters, mounting equipment, conduit, and other components), installation labor, and project management costs relating to HOA approvals, permitting, and inspections. Solar panel cost in particular cities within Texas, Colorado, Florida, Virginia, and North Carolina varies slightly, but the estimate above is a general idea of what to expect.
Keep in mind that purchase price is not the same as ownership cost. When you consider traditional electricity sourcing, not through solar photovoltaic (PV) systems, you’re paying to rent electricity from your utility company. Becoming your own source for energy through renewable solar power gives you more control over your bills and investments.
Solar power is a low-risk, high-return investment, especially if you have the cash to purchase it outright. If not, you can finance your system with monthly payments that make cash flow neutral from day one.
Freedom Solar can help you attain your solar panel system with interest rates as low as 0%, $0 down payment options, and a 25-year warranty that will ensure you don’t lose any money in the long run.
SAVING WITH SOLAR
There are numerous ways to save money when going solar. Whether you’re looking to reduce costs on installation or your utility bill, we’ll detail all of the ways you can save with solar power.
Lowering the Price of Your Home Solar Power System
- Local rebates: Reduce solar installation costs with renewable energy incentives from your local or state government.
- Federal rebates: Take advantage of the federal solar tax credit, which can save you 26% on solar panel installation costs.
- Manufacturer rebates: Find out which manufacturers make going solar as easy as possible while offering financial incentives toward your solar installation.
- Promotions: Pay attention to promotions in your city or state that could help you save on purchase and installation costs. Buying at the right time is smart buying.
Saving Money on Utilities
- Utility bills: Say goodbye to high electricity costs. Going solar can dramatically reduce or even completely eliminate your monthly utility bill.
- Net metering: Get paid for any excess or unused energy your solar system generates. You can potentially save thousands of dollars in electricity costs over the lifetime of your solar energy system.
Take a look at our solar potential calculator to get an idea of how much energy your panels could generate as well as how much money you could save based on your utility bill.
[Related: Energy Independence Through Solar]
HOW TO SAVE MONEY ON SOLAR PANEL COST WITH LOCAL REBATES
Although Texas doesn’t have a state-led solar tax credit or solar rebate program, unlike Colorado and Florida, plenty of utility companies and local governments offer their own rebates and other incentives — including net metering — to encourage more homeowners to go solar.
Depending on where you live in the Lone Star, Centennial, or Sunshine state, you can take advantage of the following rebates and incentives.
Oncor offers a residential rebate up to $5,000 for installing solar panels in Dallas. AEP Texas North offers local solar owners up to $0.70 per watt in net metering credits, with a maximum of $7,000. Smaller utilities and cooperatives across the DFW metroplex and North Texas include Garland Power & Light, Denton Municipal Electric, and CoServ, which all offer limited annual rebates.
The city of Irving offers solar panel exemptions to reduce equipment and installation taxes, including the Renewable Energy Systems Property Tax Exemption and the Solar and Wind Energy Business Franchise Tax Exemption, which allows corporations to either deduct the system’s total cost from their taxable capital or deduct 10% of the cost from their income.
Austin Energy offers $2,500 as a post-installation rebate as well as net metering benefits for Austin residents using solar power. As an Austonian, you’re also eligible for Austin Energy’s Value of Solar Tariff (VoS), which pays $0.097 for every kilowatt per hour (kWh) your solar panels generate.
Houston’s Centerpoint Energy does not offer rebates for installing solar panels.
Solar panel owners in Colorado Springs are eligible for a rebate of $0.10 per watt, so potentially 40% of your system costs could be reduced based on average home energy use. And Colorado tax exemptions such as the Property Tax Exemption for Residential Renewable Energy Equipment and Property Tax Exemption for Residential Renewable Energy Equipment also drastically reduce costs.
The Property Tax Exemption for Residential Renewable Energy Equipment and Property Tax Exemption for Residential Renewable Energy Equipment also apply to solar panel systems in Denver as well as the entire state of Colorado to help mitigate taxes. Net metering is also in effect through programs such as Xcel Energy, which provides energy credits for any excess power generated from your solar system that’s sent to Denver’s grid.
Both residential homes and businesses in Tampa are afforded a rebate of $2 per watt for solar PV systems installed and interconnected with the city’s electric grid. The maximum allowed rebate is $20,000.
Florida also offers a 6% sales tax exemption on any equipment purchased for your solar panel system, as well as property tax exemptions from the added value that solar panels bring to your home.
If you live in Texas, Colorado, or Florida, you have access to plenty of local solar incentives that will lower the cost of your solar panel installation. Find out more about state-specific rebates and incentives here.
Saving Money With Federal Rebates
One of the best incentives to lower the costs of your solar energy system is the federal solar tax credit. You can reduce the amount you pay in taxes for your solar panel system by 26% between the current year, 2021, and through 2022.
That means that if your system costs $30,000, you get a $7,800 credit on your federal taxes. And adding any local incentives listed above will help you save even more money!
[Related: Guide to Federal Solar Panel Incentives]
Saving Money With Manufacturer Rebates
Manufacturers want to make it easy for homeowners like you to make the switch to renewable energy. SunPower periodically offers rebates up to $1,000 to offset your solar panel installation costs.
Contact Freedom Solar and one of our specialists will help you find manufacturer rebates suitable for your residence.
Saving Money With Promotions
Freedom Solar also aims to help customers save money through a variety of promotions throughout the year. Promotions vary and have deadlines, but we’ll work with you to find the best options available.
SAVING MONEY ON UTILITIES
Saving Money on Utility Bills
One of the most popular reasons to go solar is that you can drastically reduce — or even completely eliminate — your monthly utility bill. The amount you’ll save depends on how much energy your system produces as well as how much energy you consume. But the most significant benefit is the decrease in your monthly utilities since you’re harnessing the power of the sun, a free, inexhaustible energy source.
You’ll also avoid hefty electricity rates that are often unpredictable and increase over time. And since the amount you’ll save with solar power is usually equal to the amount you’ll avoid paying an electricity supplier, your finances won’t be affected by surging energy prices in the area.
When you install a solar panel system, you can lock in your energy costs at a constant rate, making your finances much more predictable.
Saving Money with Net Metering
A solar panel system is a workhorse and can often generate more electricity than you need for your daily use. This is where net metering is beneficial; it serves as a billing agreement between you and your utility provider as a solution for any excess, unused energy. You can program your solar panel system to send any unused electricity to your city’s grid, and in return you’ll receive credits on your electricity bill.
Net metering is especially useful since it’s rare that someone is at home using electricity all day and night. When you’re out of the house, your solar panels will continue to generate energy and store it as backup power in a generator or battery. Or even when you’re sleeping at night and not using electricity, you can tap into those net metering credits to offset your electricity bill.
This means that you’re not only in control of your own energy, but you’re able to give electricity back to your city, making sustainable efforts and also saving money in return. Triple win!
All the Ways You Can Save with Solar
Acquiring a solar panel system is a major home improvement project, but it’s well worth the time and financial investment. Most homeowners go solar with no money down up front thanks to local, state, and federal incentives that significantly help reduce costs.
Whether you’re utilizing local, state, or federal rebates, net metering, or perhaps seasonal promotions, you have plenty of ways to offset the costs of your solar panel equipment and installation to help you gain a lifetime of free, renewable energy. To learn more about Freedom Solar or request a free consultation and quote, call +1 (877) 795-0577 or fill out our online inquiry form.
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