When it comes to installing a solar system, one common misconception is that they are priced by the number of panels. In reality, solar systems are priced by kilowatt-hour (kWh), which measures the system’s capacity to produce energy over time. Here’s a closer look at how solar systems are priced, the steps involved in setting them up, and why now might be the best time to go solar.

Solar Pricing: Why Kilowatt-Hour Matters

Unlike other home improvements, solar systems aren't sold on a per-panel basis. Instead, they’re designed and priced based on how much energy your home needs, measured in kWh. This is because the energy output of each panel varies depending on its type, size, and efficiency. For example, a home that consumes more electricity will need a system with higher kWh output.

Pricing per kWh ensures that you are paying for the actual energy your system will generate, rather than just the number of panels installed. The size of the system is calculated based on your home’s energy needs, taking into account factors like your location, available sunlight, and typical energy consumption.

The Work Involved in Adding a Solar System to Your Home

Installing a solar system is more than just placing panels on your roof. The process is intensive, requiring a detailed assessment of your home’s energy usage, roof structure, and sunlight exposure. Once your needs are determined, a custom-designed system is created to maximize efficiency and meet your energy goals.

Additionally, power companies and city governments are heavily involved in the installation process. After the system is designed, the installation team must secure permits from your local city or county. Power companies must also approve the system and often require inspections to ensure the solar system is properly installed and safe to connect to the electrical grid.

Because of this multi-step process, pricing a solar system per panel would be nearly impossible—it’s the overall design, permitting, and energy output that drives the cost.

Monocrystalline vs. Polycrystalline Solar Panels: What’s the Difference?

Two main types of solar panels are commonly used in residential installations: monocrystalline and polycrystalline.

• Monocrystalline Solar Panels are made from a single, pure crystal of silicon. They are known for their higher efficiency and sleek black appearance. Because they are more efficient at converting sunlight into electricity, you can generate more power with fewer panels. However, they tend to be more expensive than polycrystalline panels.

• Polycrystalline Solar Panels, on the other hand, are made from silicon fragments melted together. These panels are less efficient than monocrystalline panels, which means you may need more of them to meet your energy needs. They tend to have a blueish hue and are generally more affordable.

The type of panel you choose will impact the total cost of your system, but remember that the ultimate goal is to meet your home’s energy needs efficiently, which is why solar systems are priced by kWh and not per panel.

Average Cost of a Solar System in the U.S.

On average, the cost of a solar system in the United States ranges from $25,000 to $35,000 before any incentives or rebates. This price can fluctuate depending on the size of your home, energy consumption, and the type of panels you choose. While the upfront cost may seem significant, many homeowners see long-term savings by reducing or even eliminating their monthly electricity bills.

Why Now Is the Best Time to Go Solar

With rising electricity prices and increasing demand for clean energy, going solar now offers several key benefits:

• Cost Savings: By installing a solar system, you can lock in lower energy costs for years to come. As electricity prices continue to rise, solar offers a way to avoid those increases.

• Government Incentives: Many states offer rebates and incentives to reduce the cost of solar installations. The federal government also provides a solar investment tax credit (ITC), which allows you to deduct a portion of your solar installation cost from your federal taxes. These incentives won’t last forever, making now an ideal time to take advantage of them.

• Increased Home Value: Homes with solar systems tend to sell faster and at higher prices. Studies show that solar energy can add significant value to your property, which makes it an excellent investment.

The Benefits of Adding a Backup Battery to Your Solar System

Pairing your solar system with a backup battery can further enhance your energy independence. A battery allows you to store excess solar energy for use during cloudy days, at night, or during power outages. Here are some benefits of adding a backup battery:

• Energy Security: With a battery system, you can ensure that your home remains powered during grid outages or emergencies.

• Increased Savings: Batteries can help you avoid high electricity rates during peak hours by storing energy for later use.

• Maximizing Solar Output: A battery allows you to make the most of your solar system by storing energy that would otherwise be sent back to the grid.

Conclusion

Investing in a solar system is one of the smartest choices you can make for your home and your wallet. While the process of pricing and installing a system involves several key steps and entities, the long-term benefits—like lower energy costs, state and government incentives, and energy independence—far outweigh the initial investment. Adding a backup battery further enhances these advantages, providing security and efficiency for years to come.

For those looking to dive deeper into how solar panels are priced, we’ve gathered links to other reputable sources that provide additional insights. Please note that while we are sharing these resources for your convenience, ES Solar does not endorse nor own the rights to the content on these external blogs. They offer helpful perspectives on solar pricing, but we recommend contacting us for a personalized consultation tailored to your unique energy needs.

Forbes - Solar Reviews - Bankrate

Feel free to reach out to ES Solar for any questions or to schedule your free solar assessment!