Solar power is a more energy efficient way of running your home. The benefits that are included in switching to solar can be reducing your electricity bill, minimizing your carbon footprint, and increasing your property value.

Solar panels can be pricey to install. Depending on the size, age and location of your home, the costs can rise significantly. These factors can also vary depending on the state you live in, as some see more sunlight than others. With all of these variables, how can you really tell the price of installing solar panels?

The easiest and most accurate way is to look at its price in dollars per watt ($/W). This is almost the same across the entire United States. By looking over the following, you’ll have an easier time figuring out the price and if solar panels are right for you.

Solar Panel Cost

This year, the average solar panel cost is $3.05/watt in the United States. In the U.S., the average solar system size is 6 kilowatts (kW). After tax incentives, a solar panel system could cost anywhere between up to $13,000. Solar panel systems seem to be continuing to lower in price. This average price has fallen lower than where it was under two years ago.

Depending on your location, a quote for your solar panel system may change. The range of the average price usually falls between $2.65 to $3.45. From an average-sized installation company in the United States, the price range is between $11,000 to $14,000 after tax incentives.

Regardless of the costs now, in a few years time we may see the average price of solar panels dropping under $10,000. Technology is always evolving and becoming more accessible to everyone. The same can be said about solar panels. As we approach a very important time in the Earth’s life, where using non-renewable sources has had disastrous effects on the planet, switching the a renewable source like solar may be more accessible than we originally thought.

System Size

As previously mentioned, the average is $3.05/watt in the United States. This price varies on the size of the solar panel system you need to put in place. The average solar system size is 6 kilowatts (kW). By multiplying these two numbers together, you can get the average price of a solar system, which is $18,000. After tax cuts, which again varies on the state you live in and the size of the system, would be around $13,000. This means there’s $5,000 in savings by installing a solar system, plus the long term advantages of switching to solar energy.

On average, switching to solar power in Frederick, Colorado means the average price is $3.10/watt. The average price of a system is a little above the national average; $11,500 to $15,000. This is still a reasonable amount. Over time, the system will pay itself back in savings on electricity.

For a business trying to make the switch, the cost may be higher. Depending on the state, this also could mean larger savings. The average size for a business or a larger home is 10 kilowatts (kW). This means a business switching to solar energy in Firestone, Colorado will pay around $19,000 to $25,000 to install a solar panel system. The solar tax credit (ITC) will reduce this price by 30 percent. Local governments and utility companies offer their own rebates that can increase your savings even more.

Factors That Impact the Cost of Solar Panels

When shopping around different installers for a solar panel system, there’s most likely going to be a price variation. There are multiple factors when coming up with the cost of a solar system. Equipment is usually the biggest difference.

Not all solar panel systems are the same. Buying solar panels in Erie, CO could and will be different than purchasing them from a larger retailer. The technology will be different on both sides. Higher quality energy systems with the latest technology will cost more as they’re more efficient for your home and will allow for greater savings.

Labor and permit costs, the shape of your roof and the size of your home will all play important roles in the solar panel system decision making process.

Tips for Solar Panel Shopping

There are some small tips when shopping for your perfect solar panel system.

The Bigger the Company, the Higher the Price

For the most part, purchasing solar panels from a larger company will lead to a larger price tag. Large installers can charge upwards of $5,000 more than if you were to buy local. If you’re looking for a cheaper solar panel system, buy from smaller, local companies to save money and build a greater connection. A solar company in Louisville, CO will is most likely going to be less expensive than a nationwide company.

Compare All Equipment Options

It’s important to compare all equipment options available. After doing some research and narrowing down the best options, ask companies for quotes, about their systems, and if they offer any new technological upgrades other installers might not have. A solar company in Erie, CO, may have a more advanced system than a nationwide retailer. Ask these questions before settling on a larger chain just because they have more customers.

It can be tough trying to decide on if you want to make the switch to solar energy. There can be a lot of hidden fees that you might not know about. Doing plenty of research on the costs of solar energy in your area will lead you on the way to finding the best system to fit your home or business.