How Much Does it Cost to Install Solar Panels?

Solar Panel Cost Guide

SOLAR PANEL
INSTALLATION COST GUIDE  

No two solar power systems are the same. They are custom-based on the home, roof type, shading, and utility. Installation for the average 5kW system ranges from $11,100-$22,400.

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Average Cost of Solar Panel Installation


BASED ON LOCATION AND WATTAGE

For a 5kW-6kW system: $2.50-$4.15/watt

Average cost of solar installation based on location and wattage for a 5kW-6kW system





  • Arizona: $2.50-$3.50/watt
  • California: $3.00-$4.15/watt
  • California: $3.00-$4.15/watt
  • Colorado: $3.15-$4.00/watt
  • Connecticut: $2.95-$3.75/watt
  • Florida: $2.65-$2.75/watt
  • Hawaii: $3.70-$3.75/watt
  • Illinois: $3.00-$3.75/watt
  • Maryland: $3.00-$3.60/watt
  • Massachusetts: $3.75-$3.90/watt
  • Nevada: $2.70-$3.55/watt
  • New Hampshire: $3.60-$3.85/watt
  • New Jersey: $2.70-$3.80/watt
  • New Mexico: $3.60-$3.95/watt
  • New York: $3.80-$3.95/watt
  • Pennsylvania: $3.30-$3.60/watt
  • Rhode Island: $3.80-$3.90/watt
  • South Carolina: $3.60-$3.90/watt
  • Texas: $3.40-$3.70/watt
  • Utah: $3.50-$3.95/watt
  • Vermont: $3.50-3.85/watt
  • Washington, D.C.: $3.30-$3.85/watt
  • Wisconsin: $2.80-$2.95/watt

Based on Location and a 5kW System:

$11,100-$22,400

Average cost based on location and a 5kW system





  • Arizona: $12,400-$17,000
  • California: $12,700-$17,200
  • Colorado: $13,500-$18,300
  • Connecticut: $12,700-$17,300
  • Florida: $11,100-$15,200
  • Hawaii: $20,000-$22,400
  • Illinois: $13,300-$18,100
  • Maryland: $12,500-$17,100
  • Massachusetts: $14,100-$19,100
  • Nevada: $12,400-$16,900
  • New Hampshire: $13,200-$18,000
  • New Jersey: $13,300-$18,200
  • New Mexico: $14,800-$20,200
  • New York: $11,900-$16,100
  • Pennsylvania: $13,600-$18,400
  • Rhode Island: $12,600-$17,200
  • South Carolina: $13,300-$18,200
  • Texas: $11,400-$15,500
  • Utah: $13,500-$18,200
  • Vermont: $13,800-$18,700
  • Washington, D.C.: $13,900-$18,900
  •  Wisconsin: $13,900-$19,000

Savings


How Much Money Can You Save Using Solar?

On average, homeowners save approximately 20% on their power bill when they switch to solar power. A variety of factors play a role in how much you’ll save. Here are some considerations to keep in mind when shopping for a solar power solution:


Features that May Affect Cost

  • Region: Solar power installation prices vary based on region. This means it can take more or less time to recoup installation expenses. The weather in your region also plays a role in how efficient solar power systems are on average. 
  • System Size: Installing a properly sized system is essential for efficiency. A smaller system can help you reduce energy bills, but larger systems that can power most or all of your home are typically more efficient.
  • Number of panels/panel type: Consider your space. Homes with less space for installation and fewer overall panels generally benefit from high-efficiency options.
    Roof position and panel location: Where your roof is in relation to the sun plays a big role in panel efficiency.
  • Seasonal impact: Time of year impacts how your solar system performs. Spring and summer are typically the times of the year when homeowners will save the most money. During the cold winter months you may save less, but your system can still generate power.

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How Much Does It Cost to Lease a Home Solar System?

Paying for solar panels and installation up-front isn’t possible for many homeowners. With a home solar lease, your system is rented from a professional solar provider. This reduces up-front costs and puts professionals on the job who understand how to maximize your solar power system.

A solar lease provider will also handle paperwork, permits and installation based on your particular home and energy needs. They will also own the solar panels on your property. By making low monthly payments, you’ll get clean, reliable solar energy. You’ll also be protected from soaring electricity costs around the country.

Cost Benefits:

  • Leasing means low or no up-front costs. High installation costs keep many homeowners from buying and installing solar panels that they own.
  • Average lease costs are between $50-$250 per month based on the size and overall production of your system.
  • In many instances, solar providers offer free system monitoring, maintenance, repairs and insurance for the duration of your solar lease.


Other Considerations for Solar Lease:

  • A solar lease plan is often a smart choice for homeowners looking to retrofit their house. Low or no up-front costs make them a smart buy for homeowners on a budget.
  • The average solar lease plan lasts 20 to 25 years. When your lease ends, you’ll usually have the option to renew your plan or buy the system. If you choose neither option, some solar providers will repair your roof to its original state free of charge.
  • Some solar lease providers can transfer a solar lease plan to a new homeowner if you choose to sell. Having a solar power system in place can be a selling point for many modern buyers.
  • Solar lease providers may be able to pass on incentives, rebates and special tax credits. You’ll usually get these incentives in the form of lower monthly payments.

What’s a Solar Power Purchase Agreement (PPA)?     

How Much Does it Cost?

A solar power purchase agreement, commonly referred to as a PPA, is an agreement to pay for the energy created by a solar system at a fixed per-kilowatt-hour price. These plans are offered by solar providers and typically billed monthly or in an up-front lump sum fee.

The main benefit of a solar PPA is that you can lock in low electricity rates for your home. These rates are designed to be less than what you pay your electric company currently, and in many cases, savings are significant.

Cost Benefits:

  • Monthly or full up-front payments are estimated based on the expected solar energy production of your system.
  • The system’s expected production in the first year determines the price paid for the solar energy.
  • Most PPA providers offer free system monitoring, maintenance, repairs and insurance. These benefits typically last for the whole duration of your agreement.


Other Considerations for Solar Lease PPA:

  • Choosing a prepaid solar PPA plan gives you the best value in solar.
  • Your home solar PPA plan will usually last 20 to 25 years
  • When your solar PPA ends, you have the option to renew your plan, purchase the system, or in some cases, your solar provider can also remove the panels and restore your roof to its original condition before installation.
  • If you sell your home, your solar provider may be able to help you transfer your PPA plan to the new owner.
  • Some solar providers can pass the value from solar overproduction, incentives, rebates and tax credits to you in the form of lower PPA payments.

Why Choose The Home Depot


The Home Depot only uses local, licensed, bonded and badged contractors.  Adding solar to your home doesn’t require a huge renovation budget, and The Home Depot also offers a wide range of solar products and services designed to fit any home and budget. Begin with a free in-home consultation with one of our professional consultants who can help you determine your needs and plan your project. To further help homeowners afford home remodeling projects, The Home Depot offers financial assistance options including specialized credit cards for project loans.

Contact us today at

1-800-HOME-DEPOT

to learn more.
 

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