How much can you spend on a solar system?

This is an eternal question if you get a quote from an installer, or if you want to install a solar system yourself, you need to know the cost of what you are getting into.

For a general reference, a solar panel system with a DIY installation can cost about $2 per watt of capacity. A professional installation can typically cost anywhere from $3 to $5 per watt of the solar panels.

Residential systems typically range in size from about 3 kilowatts to more than 8 kilowatts. That means a total initial cost is between $6,000 and upwards of $18,000 for a DIY system and about $15,000 to $30,000 for a professionally installed system. Smaller systems tend to cost more per watt than larger systems, but larger systems have a larger overall cost.
 

Federal tax break for solar power

Regardless of who installs your system, the federal tax break available through 2019 is 30 percent. In 2020 it drops a little down to 22 percent in 2021. This is a tax credit subtracted from the income tax you owe every year. It is not a check from the federal government. Additional rebates and incentives offered by utilities or state or local programs can reduce the cost further.

As you probably already know, rebates are not as robust as they used to be but don't feel too bad, because the cost of the solar panels has dropped dramatically over the past 10 years. Those panels are less expensive now than they were 10 years ago with rebates. If you installed a solar system in the 1970s you would have paid close to $50 a watt, and the cost now is closer to $3 per watt.
 

Solar is more affordable

As the costs continue to drop, solar becomes more affordable. Once you figure out how much you need to spend, then you can install your solar system and achieve solar energy independence.

To find out what panels are right for you, go to HahaSmart.com and try our price checker tool. You can see how much a system will cost, and how much you can save over the next 20 years.

For more information relating to going solar, don't forget to visit our solar blog section for more handy guides and articles.