By installing solar panels on your home you have the rare opportunity to profit while doing good. Already more than 2 million homeowners have been motivated to install solar panels. The economics of solar can be vastly different depending on where you live, how much power your home uses, and what your utility company charges for electricity.
Let us set an example. If you live in El Paso, Texas, let's say zip code 79922, and your last month's electric bill was for $200.00, you are going to need around 32 solar panels for a solar system of 12.8kW. If you would also like to add a battery system in this example, you would need one of about 32.8 kWh. If you paid at least $200.00 for your monthly electric bill before this solar system, you would now pay less than $50.00. That means that in 25 years (which is more or less the life time of solar panels) you would be saving around $58,420. In this example, the current annual electric use is of 23,404 kWh. The annual energy production from this solar system would be of 22,755 kWh. There is a Residential Clean Energy Tax Credit for $10,564.
How Much do Solar Panels Cost for an Average Home in 2023?
The average residential solar panel installation cost today is between $12,390 and $15,960 after claiming the 30% federal solar tax credit. This is less than $3.00 per-watt installed on average, 70% cheaper than the cost of solar 10 years ago!
Average solar panel cost based on system size in 2023
​System Size | Number of solar panels (400-watts) | Average cost per watt | Average total cost after tax credit |
4 kW | 10 | $3.25 | $9,100 |
6 kW | 15 | $2.95 | $12,390 |
8 kW | 20 | $2.85 | $15,960 |
10 kW | 25 | $2.75 | $20,350 |
12 kW | 30 | $2.75 | $23,100 |
14 kW | 35 | $2.60 | $25,480 |
16 kW | 40 | $2.60 | $29,120 |
Solar is mostly a one-time investment and its prices have leveled out over the last few years. There is no forecast of a substantial price fall over the rest of the year.
How much will Solar Panels cost for your House?
Your house is unlikely to be average. The cost to install solar panels on your particular house depend on its location, electricity usage, and what kind of savings and payback period can you expect. This also varies depending on your local utility rates and the weather.
Will Installing Solar Panels in your House be a Good Investment?
Yes, solar panels save you money, and can save well over $50,000 throughout their lifetime. You can expect your solar panels to pay themselves off after four to eight years. After that, your panels will be making you completely free electricity for 20 years!
If you don't get solar, then the price you pay for electricity will go up, and up, and up over the years. Solar panels provide such great savings because of net metering too. Net metering lets you sell any excess solar electricity your solar panels produce during the day back to your utility company at the same rate you buy electricity at night.
Installing a solar panel system on your house can usually offer a better return than traditional investments like property or shares. Contact us at Sunshine City Solar today to help you determine whether solar panels are suitable for your home and give you information about costs, savings, tax credits, and other incentives in El Paso, Texas. Solar panels are a worthwhile investment, especially in places with solid net metering policies and local solar incentives. Of course, there are certain scenarios in which rooftop solar panels aren’t a good fit, like if you have nowhere to put the system, you plan to move soon, or your energy costs are already low.
The best time to go solar is now. You’ll see solar savings sooner, and it not only allows you to save on your electric bills, but it also helps you lower your carbon footprint while giving you more independence, especially when you pair solar with battery storage, as we see more states eliminating net metering and blackouts becoming more common, more homeowners will start adopting storage along with solar panels.
The best way to know if solar is right for you is to contact us today for an estimate. We can provide cost and savings estimates for your home so that you can get a better idea of whether or not solar is a worthwhile investment for you.