Solar Panel Prices in 2022: What you need to know

Solar Panel Prices In 2022: What You Need To Know

Going solar has tremendous benefits for us personally and globally. Solar can dramatically reduce household energy costs, protect against rising energy costs and reduce our carbon footprint. In fact, in 2021 solar provided about 12 percent of US energy consumption and is projected to increase, an indication of its growing popularity.

Costs of solar

Even though solar industry analysts project that the cost of solar will continue to rise in 2022, solar remains an affordable option for homeowners. Over the last decade the cost of solar has dropped by more than 70 percent with advances in solar technologies and manufacturing.

The best way to understand the cost of a residential solar project is price per watt. Price per watt is the total cost of the project (including materials and installation with any financial incentives deducted) divided by the total wattage of your solar panels. So, if you have ten 200-watt solar panels, your system size is 2000 watts. If your total installation cost is $2000.00 then your price per watt is $1.00.

The graph below shows the average price per watt of a residential solar project in the US in 2020-2021. The rise in prices you see in the graph below is caused by increases in raw materials, freight and labor. Even with these increases the solar power system remain an affordable option for homeowners.

Solar prices by state

Just like any home improvement project, solar pricing is determined by the local cost of materials and labor, as well as any financial incentives provided by government agencies or utilities. The table below shows howprices vary across the US.

State Average Cost of Solar Per Watt Cost for a 5kW System After Tax Credit (26% in 2021) After Tax Credit (22% in 2023)
Alabama 2.45 12250 9065 9555
Alaska 2.41 12050 8917 9399
Arizona 2.61 13050 9657 10179
Arkansas 2.54 12700 9386 9906
California 2.73 13650 10101 10647
Colorado 2.69 13450 9965 10491
Connecticut 2.8 14000 10360 10920
Delaware 2.58 12900 9546 10062
Washington, D.C. 3.16 15800 11704 12324
Florida 2.53 12650 9361 9867
Georgia 2.55 12750 9423 9945
Hawaii 2.67 13350 9879 10413
Idaho 2.6 13000 9608 10140
Illinois 2.73 13650 10113 10647
Indiana 2.68 13400 9916 10452
Iowa 2.77 13850 10237 10803
Kansas 2.59 12950 9571 10101
Kentucky 2.34 11700 8658 9126
Louisiana 2.57 12850 9521 10023
Maine 2.83 14150 10483 11037
Maryland 2.77 13850 10261 10803
Massachusetts 2.94 14700 10878 11466
Michigan 2.81 14050 10409 10959
Minnesota 2.84 14200 10508 11076
Mississippi 2.64 13200 9768 10296
Missouri 2.59 12950 9583 10101
Montana 2.54 12700 9386 9906
Nebraska 2.83 14150 10471 11037
Nevada 2.52 12600 9324 9828
New Hampshire 2.91 14550 10767 11349
New Jersey 2.77 13850 10249 10803
New Mexico 2.68 13400 9904 10452
New York 2.95 14750 10927 11505
North Carolina 2.54 12700 9398 9906
North Dakota 2.42 12100 8954 9438
Ohio 2.56 12800 9460 9984
Oklahoma 2.62 13100 9694 10218
Oregon 2.6 13000 9632 10140
Pennsylvania 2.55 12750 9447 9945
Rhode Island 2.84 14200 10508 11076
South Carolina 2.72 13600 10076 10608
South Dakota 2.39 11950 8843 9321
Tennessee 2.49 12450 9213 9711
Texas 2.69 13450 9953 10491
Utah 2.68 13400 9904 10452
Vermont 2.87 14350 10619 11193
Virginia 2.75 13750 10163 10725
Washington 2.69 13450 9965 10491
West Virginia 2.64 13200 9768 10296
Wisconsin 2.6 13000 9620 10140
Wyoming 2.57 12850 9509 10023  

Table courtesy of energysage

Solar financial incentives

Financial incentives can provide big discounts on the cost of solar in the form of rebates or tax credits. For example, the solar tax credit is one of the available incentives. Over the period between 2020 to 2022, solar projects can apply to a 26% tax credit, and in 2023, the figure will drop to 22%. However, these incentives vary widely by state.

Types of solar panels

There are three types of residential solar panels: monocrystalline, polycrystalline and amorphous. They vary in performance, technology, materials and price.

  • Polycrystalline: These panels are blue in color and use multiple silicon crystals melted together. They are a bit less efficient than monocrystalline but are a more affordable option.
  • Monocrystalline: Monocrystalline are made from a single silicon crystal and typically have better efficiency and are smaller in size than polycrystalline. They also tend to be the higher cost option.
  • Amorphous solar panels: They are lightweight and flexible but much lower efficiency than Polycrystalline or Monocrystalline. They are also larger and require more space for installation.

Panel type Cost per watt Cost of 5kw Lifespan
Monocrystalline $1-$1.5 $5,000-$7,500 25 years plus
Polycrystalline $0.9-$1 $4,500-$5000 25 years plus
Amorphous $0.7-$1 $3,500-$5,000 14-17 years

Data source: homeadvisor.com

Note: Pricing shown in this table is for the price of the panel only. Installation costs are not included.

System size and number of panels

The number of panels you'll need for a system is determined by how much energy your home uses. Typically, consumers aim to offset 100 percent of their electricity usage with solar to get their energy bills as low as possible. For example, a typical 2,000 square foot three-bedroom home will require a system with about 20 350 watt panels with a cost of between $15,000 and $40,000 with installation.

Solar Inverters

Inverters are solar components that convert the DC power your panels produce to the AC power your home uses. There are a few types of inverters and a number of manufacturers, with varying equipment and installation costs. A high-quality power inverter is sure to cost higher.

Installation

Installation represents a sizable portion of the cost of a solar project. It includes the cost of labor and additional equipment like mounting brackets and cabling. The material your roof is made of will also impact installation costs. Materials such as asphalt shingles tend to have lower installation costs, while materials like clay tile have higher installation costs.

The bottom line

While solar is a significant investment for any homeowner, the benefits are significant as well. Solar can often pay for itself in as few 5-7 years and raise the value of a home. It insulates against energy price hikes and provides clean, sustainable energy.

At Renogy we believe in a sustainable future where renewables are the core of our energy supply.Our mission is to make 50 million people energy independent by 2030 with easy-to-use, DIY renewable energy products.We offer a wide range of solar energy products. Besides solar panels, we also offer the solar battery, solar generator, power inverter, portable power station, charge controller and every accessory to power your RV, van, cabin, yacht, and more. Explore it all at Renogy.

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