Going solar with energysage
Are you a good fit for solar?
You'll get the most out of this guide if you first understand your suitability for solar. Solar panels are an excellent investment for many homeowners but they're not right for everyone. Your home doesn't have to be a perfect fit for solar for you to benefit from it. Many homeowners will save money with the right installation or an alternative approach like a community solar subscription. If you meet the following criteria, investing in solar will probably work for you.
Did you know?
You don't need to live somewhere warm or with abundant sunshine to save with solar.
Most homeowners will save tens of thousands of dollars by going solar.
Solar panels aren't free, but they do come with great incentives.
The best solar equipment for you might not be the best solar equipment for your neighbors.
There are ways to go solar without installing a single panel on your property.
It costs over $20,000 to install solar panels. That's a big number, but it can come down significantly with generous incentives from the federal government, as well as from many states.
State | Cost Of 5 Kw System Before Incentives | Average price of 5 Kw System after Incentives | Tax Credit Value For A 5 Kw System | Average Cost Per Watt | Average 20 Year Savings |
|---|---|---|---|---|---|
Arkansas | $13,825 | $9,678 | $4,148 | $2.76 | $28,174 |
Arizona | $11,800 | $8,260 | $3,540 | $2.36 | $43,027 |
California | $14,558 | $10,191 | $4,367 | $2.91 | $48,286 |
Colorado | $15,495 | $10,847 | $4,649 | $3.10 | $24,748 |
Connecticut | $15,800 | $11,060 | $4,740 | $3.16 | $70,781 |
Washington D.C. | $15,939 | $11,157 | $4,782 | $3.19 | $50,683 |
Delaware | $13,055 | $9,139 | $3,917 | $2.61 | $22,139 |
Florida | $13,825 | $8,515 | $3,649 | $2.43 | $48,695 |
Georgia | $14,376 | $10,063 | $4,313 | $2.88 | $27,325 |
Iowa | $15,748 | $11,024 | $4,724 | $3.15 | $19,441 |
Iowa | $15,748 | $11,024 | $4,724 | $3.15 | $19,441 |
Idaho | $14,299 | $10,009 | $4,290 | $2.86 | $14,919 |
Illinois | $15,649 | $10,954 | $4,695 | $3.13 | $44,600 |
Indiana | $16,923 | $11,846 | $5,077 | $3.38 | $28,243 |
Kansas | $14,457 | $10,120 | $4,337 | $2.89 | $34,691 |
Kentucky | $14,938 | $10,457 | $4,481 | $2.99 | $27,147 |
Louisiana | $14,813 | $10,369 | $4,444 | $2.96 | $43,540 |
Massachusetts | $17,058 | $11,941 | $5,117 | $3.41 | $82,427 |
Maryland | $14,695 | $10,287 | $4,409 | $2.94 | $28,704 |
Maine | $17,608 | $12,326 | $5,282 | $3.52 | $52,563 |
Michigan | $16,218 | $11,353 | $4,865 | $3.24 | $27,370 |
Minnesota | $15,635 | $10,945 | $4,691 | $3.13 | $23,457 |
Missouri | $13,763 | $9,634 | $4,129 | $2.75 | $24,387 |
North Carolina | $13,537 | $9,476 | $4,061 | $2.71 | $19,607 |
New Hampshire | $17,532 | $12,272 | $5,260 | $3.51 | $66,264 |
New Jersey | $14,671 | $10,270 | $4,401 | $2.93 | $36,646 |
New Mexico | $15,129 | $10,590 | $4,539 | $3.03 | $31,210 |
Nevada | $12,932 | $9,052 | $3,880 | $2.59 | $43,005 |
New York | $15,507 | $10,855 | $4,652 | $3.10 | $42,083 |
Ohio | $13,498 | $9,449 | $4,049 | $2.70 | $24,743 |
Oklahoma | $12,572 | $8,800 | $3,772 | $2.51 | $37,086 |
Oregon | $14,342 | $10,039 | $4,303 | $2.87 | $17,145 |
Pennsylvania | $14,787 | $10,351 | $4,436 | $2.96 | $39,977 |
Rhode Island | $16,825 | $11,778 | $5,048 | $3.36 | $45,781 |
South Carolina | $13,291 | $9,304 | $3,987 | $2.66 | $36,227 |
Tennessee | $16,513 | $11,559 | $4,954 | $3.30 | $17,706 |
Texas | $11,900 | $8,330 | $3,570 | $2.38 | $38,808 |
Utah | $13,882 | $9,717 | $4,165 | $2.78 | $18,715 |
Virginia | $14,790 | $10,353 | $4,437 | $2.96 | $31,796 |
Vermont | $16,165 | $11,316 | $4,850 | $3.23 | $29,123 |
Washington | $14,582 | $10,207 | $4,375 | $2.92 | $7,696 |
Wisconsin | $15,720 | $11,004 | $4,716 | $3.14 | $25,689 |
West Virginia | $15,470 | $10,829 | $4,641 | $3.09 | $30,004 |
There’s a lot that goes into the sticker price a solar installer charges you. Panels are just one part of the equation. It’s also worth understanding the costs that come from the business operations an installer needs to account for to stay afloat.
Component | Average Cost* | Percentage Of Total Cost** |
|---|---|---|
| Solar panels | $3,918 | 12% |
| Solar inverter(s) | $3,205 | 10% |
| Racking equipment | $1,068 | 3% |
| Electrical wiring | $2,730 | 9% |
| Supply chain costs | $2,849 | 9% |
| Sales tax | $712 | 2% |
| Installation labor | $2,137 | 7% |
| Sales & marketing | $5,698 | 18% |
| Overhead costs | $3,324 | 11% |
| Solar installer profit | $3,324 | 11% |
| Permitting & interconnection | $2,493 | 8% |
There are three main ways to pay for your home solar system: an upfront cash payment, a solar loan, or through a lease or power purchase agreement (PPA).
If you can’t afford to pay for your system out-of-pocket, solar financing allows homeowners to use products like loans and leases to finance the purchase of a solar system by spreading out the cost over time. A typical solar panel system costs around $25,000 on EnergySage’s marketplace, not including installation.
The two most cost-efficient ways to pay for your solar system are through a cash purchase or a solar loan.
Generally speaking, these two options are the best way to go solar because you either own your own system right away or by the end of your loan. With a cash purchase, you buy your system for its full cost upfront and have no payments moving forward. If you choose a solar loan, it’s similar to financing a car or paying off your mortgage — you’ll be required to make fixed monthly payments over your loan term, which is usually anywhere from five to 25 years.
The third option for financing a new solar system is to enter into a lease or power purchase agreement (PPA). These options aren’t necessarily a smart financial choice because despite paying tens of thousands of dollars, you still won’t own your solar system by the end of the agreement. For example, if you lease a solar panel system for $100 a month for 20 years, you will have spent $24,000 on solar power over two decades, but at the end of the lease you won't own the system despite spending almost the same amount of money as if you had purchased them.
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A cash purchase makes sense if:
You have the funds to pay for a solar panel system with cash upfront.
You want to maximize the financial benefits of going solar. A cash purchase will net you the highest return on investment (ROI) for your solar system.
You want to take advantage of the ITC and other tax incentives and rebates.
You want to own your solar system outright.
A solar loan makes sense if:
You don't have enough funds to pay for your solar system with cash upfront.
You still want to maximize your savings as much as possible.
You want to take advantage of the ITC and other tax incentives and rebates.
You want to own your solar system outright.
A solar lease or PPA makes sense if:
You're not looking for the highest return on investment (ROI) from your solar system.
You aren't eligible for the ITC or other tax incentives.
You don't care about owning your solar system outright at the end of of your lease or PPA.
EnergySage is the nation's online solar marketplace; when you sign up for a free account, we connect you with vetted solar installers in your area, who compete for your business with custom solar quotes tailored to fit your needs. Over 10 million people come to EnergySage each year to learn about, shop for, and invest in solar. Sign up today to see how much solar can save you.
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