How Much Do Solar Panels Cost?

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Saving with Solar

One of the most often asked questions people ask solar companies when looking to acquire solar panel systems is how much do they cost? The answer depends on your home, your location, and most importantly, how much energy you use.

On average, Freedom Solar customers pay $187 per month when financing an 8.8 kilowatt (kW) residential solar system, but some customers pay as little as $99 per month. So what are the variable that affect the pricing?

The most important variable that affect pricing include your current energy usage – how much energy are you using now and how many panels will you need to keep up with your demand.

Every home is different and every homeowner is different. This is why our team will provide a free quote estimate and consultation to personalize your solar system design.

Breakdown of Solar Power System’s Cost

Solar systems are made of multiple products including the inverters, mounting equipment, conduit, optimizers, and other components in addition to the panels. The cost includes these items as well as the labor, project management costs relating to HOA approvals, permitting, and inspections. The cost varies city to city, but the estimate above is a general idea of what you can expect.

Keep in mind that the purchase price is not the same as the ownership cost. When you consider traditional electricity sourcing from the utility company, you are paying a never ending bill that rises year over year. You are essentially renting electricity for your home. Becoming your own source of energy means you pay the same on energy every month and you take back your independence from the utility company.

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. 

With this in mind, remember that your solar system will see sunlight through 2050 and beyond. This long-term investment pays you back in more ways than utility bill savings. A recent University of Michigan study reports that with climate change the future value of residential solar panels will increase by up to 19%.

Freedom Solar can help you attain your solar panel system with interest rates as low as 0% or $0 down payment options, with approved credit, and a 25-year warranty that will ensure you don’t lose any money in the long run.

[Related: Average Cost of Solar Panels and Installation]

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.

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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 30% 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.
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Saving Money on Utilities

  • Utility bills: Say goodbye to high electricity costs. Going solar can dramatically reduce 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 through net metering.

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

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 Texas, Colorado or Florida, or elsewhere in the United States, you can take advantage of the following rebates and incentives:

Check State Solar Incentives

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 30% between now and 2033. 

That means that if your system costs $30,000, you get a $9,000 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 Utility Bills

One of the most popular reasons to go solar is the drastic reduction to 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 energy bill 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 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 solar panel company Freedom Solar or request a free consultation and quote, call +1 (800) 504-2337 or fill out our online inquiry form.