How much are solar panels for home in 2024?

by | Nov 1, 2024 | Solar Energy

Residential Solar Projects

A Complete Guide

With the increasing push for energy independence, many homeowners ask, “How much are solar panels for homes?” Understanding the cost of solar panels is crucial, especially for those in states like Oregon. One of the primary factors affecting solar costs in Oregon is its relatively lower solar irradiance compared to sunnier states like California or Arizona. Solar systems may need to be more significant to produce the same energy, potentially increasing upfront costs. Here in Oregon, though, we are fortunate. According to the U.S. Energy Information Administration (EIA), Oregon’s average residential electricity rate is about 11.5 cents per kilowatt-hour, lower than the national average of 15.4 cents per kilowatt-hour. This is mainly due to the state’s reliance on hydropower, which generates nearly 50% of Oregon’s electricity, as the Oregon Department of Energy reported. The abundance of regional hydropower dams, such as the Bonneville Dam and The Dalles Dam, helps keep energy costs stable and affordable for consumers. In this article, we will delve into the average costs, explore factors influencing pricing, and provide insights on how to make the best solar investment for your home.

What it’s the average cost for solar panels in 2024?

The cost of solar panels for homes can vary widely depending on multiple factors, including system size, component quality, and location. But what remains consistent is the financial benefit of going solar. For Oregon residents, solar panel installations offer potential savings on energy bills and the opportunity to contribute to the state’s growing renewable energy sector. According to recent data from the Energy Sage Marketplace1, a typical 10.8 kW solar panel installation can cost approximately $20,948 after federal tax credits. This figure can be a good starting point, but there are several nuances to consider when evaluating your solar investment.

 

Let’s consider the federal rates below:

Oregon’s average solar installation cost typically ranges between $2.50 to $3.50 per watt, depending on system size, installation complexity, and location-specific factors. Oregon’s average cost is around $2.65 per watt for residential rooftop installations, which aligns with national trends for residential solar installations. This cost is relatively affordable compared to other states, thanks to Oregon’s stable permitting fees and incentives, such as the Energy Trust of Oregon rebates and the federal Investment Tax Credit (ITC)

When broken down into cost-per-watt—a common way to compare solar prices—the national average is about $2.75/W before incentives. However, these figures can vary widely depending on the region. Costs may be higher in states like California and Massachusetts due to local demand and stringent permitting processes. Homeowners often begin by searching for solar panels for sale or solar kits to evaluate the initial investment.

Additionally, homeowners might explore purchasing options by searching for solar panels for sale or even solar kits that they can install themselves. While these options offer lower initial costs, working with the best solar power companies ensures a high-quality installation and often comes with warranties and maintenance services that DIY setups can lack.

Key Takeaway: The average cost of a solar panel system is just one part of the equation. Homeowners must also consider hidden and soft costs that can impact the final installation price.

Are There Hidden Solar Panel Installation Costs?

When evaluating the overall costs of installing solar panels, many homeowners focus solely on the hardware and main installation fees. However, several additional expenses, known as “soft costs,” can significantly impact the final price. These soft costs can include permitting, financing, and installation labor, which account for up to 64% of the total installation cost². Moreover, external factors like local regulations and weather patterns can contribute to hidden costs. Below are some specific hidden costs and factors to consider:

 

Permitting fees:

These can vary significantly by location. For instance, in Oregon, counties like Clackamas charge a flat fee of $190 for prescriptive installations, covering administrative work and typically resulting in approval within two to three business days. However, more complex projects can take up to 4 weeks, with variable fees based on structural and labor requirements. Nationally, permitting fees can range from $500 to $1,000, depending on the jurisdiction3.

Electrical upgrades:

 If your home requires upgrades to its electrical system to support the solar panels, this can add unexpected costs.

Roof repairs:

To accommodate the solar system, structural reinforcements or repairs may be needed, leading to additional expenses.

Interconnection standards and grid infrastructure:

Complex interconnection standards or older grid infrastructure can result in delays and increased expenses, especially for larger projects.

Weather-related delays:

 In Oregon, prolonged rainy seasons can affect installation schedules, leading to longer timelines and potential cost increases.

Navigating incentives and rebate programs:

While Oregon offers favorable incentives, coordinating approvals with multiple agencies and navigating intricate rebate programs can be time-consuming and add administrative costs.

To gain better transparency and avoid surprises, solar customers should ask their installer the following questions:

Step-by-Step Questions to Ask Your Installer for Transparency:

1. Permitting Fees:

Can you outline the specific permitting fees for my area? I understand these costs vary widely, and I’d like to know what to expect upfront.

2. Interconnection Costs:

Are there any additional costs associated with connecting my system to the utility grid? If so, what might these fees include, and are any potential upgrades needed for my home’s electrical system?

3. Roof Repairs or Reinforcements:

Will my roof require any repairs or reinforcements before installation? I want to ensure my roof is in optimal condition to support the panels long-term. If an inspection is needed, can you estimate any potential work?

4. Grid Upgrades:

Does my area have any grid limitations that could result in additional costs or delays? I’d appreciate your insight on whether this has been factored into the initial estimate.

5. Financing Costs:

What financing options do you offer, and are there hidden fees, such as origination fees or other charges, that might affect my monthly payments?

6. Maintenance or Warranty Costs:

What maintenance or warranty-related fees should I anticipate? For example, does the warranty cover all maintenance, or are there any additional costs that I should plan for?

7. Timeline and Potential Delays:

What is the expected timeline for installation, and are there any foreseeable delays due to permitting or other factors? For instance, if more complex permitting is needed, how might this impact the project timeline?

Oregon’s permitting process can vary significantly depending on the municipality, potentially leading to delays. For example, simple permits in Clackamas County take 2-3 business days, but more complex ones may take up to 4 weeks, adding unforeseen costs and delays if not appropriately planned.

These questions can help homeowners understand their total solar investment, avoid unexpected expenses, and plan their budgets more accurately. For more detailed information, refer to sources like the Oregon Department of Energy and the MIT Energy Initiative.

Why It Matters: Understanding these hidden costs can help you better plan your budget and avoid surprises. Ask your installer for a detailed cost breakdown to determine where your money goes.

This leads us to our next question.

What Factors Influence the Cost of Solar Panels for Residential Properties?

Several factors determine the final price of a solar panel system. Some of these include:

  • Location and Market Demand: Prices fluctuate based on your geographical location. In states like Oregon, where solar is gaining popularity, prices might be more competitive than in states with lower adoption rates. Consider searching for solar near me to find reputable local installers.
  • Installation Type (Roof vs. Ground Mount): Ground-mounted systems are typically more expensive due to additional labor and material costs. Roof installations, especially on complicated roof structures, may also require extra support, impacting the price.
  • Installation Complexity: Steep or complex roof designs can increase labor costs. For example, a homeowner in Oregon with a steep roof saw a 15% rise in labor costs due to specialized equipment.
  • Component Choices: The type of solar panels, inverters, and additional system components like battery storage can significantly affect the total cost. Premium brands like SunPower often command higher prices but may offer better performance and warranties. Alternatively, looking for solar panels for sale can provide a budget-friendly option for DIY enthusiasts.
  • Labor and Permitting Costs: Labor costs can range from $0.60 to $1.00 per watt, depending on the complexity of the installation. Permitting costs vary by jurisdiction and can also add to the final price.
  • Rebates and Incentives: Federal, state, and local incentives can lower the net cost of a solar system. The federal tax credit reduces the price by 30%, making it a significant factor in affordability.
  • Roof Condition: Hidden structural issues could require repairs that add to costs.

Why It Matters: Knowing these variables can help homeowners make more informed decisions when choosing a solar installer and system components.

Why Are Solar Panels So Expensive?

The reason why solar panels are so expensive can be attributed to three key factors 4.

1. High-Quality Materials:

Premium solar panels, like those made with monocrystalline cells, use high-purity silicon and other specialized components, which boost efficiency and durability. These materials are more expensive to manufacture and provide longer-lasting warranties, resulting in higher costs.

2. Installation and Design Complexity:

Every home has different structural and electrical requirements, which can lead to increased costs. Complex designs, shading issues, or roof modifications require specialized labor and tools, making installation more expensive. Professional solar installers charge for their expertise, ensuring safety and efficiency during setup.

3. Soft Costs:

These include non-hardware expenses such as permitting fees, marketing, sales, and inspection costs. Soft costs often account for a substantial part of the total installation price, as solar companies factor in administration, customer acquisition, and regulatory compliance into their pricing.

Together, these factors contribute to the high upfront costs of solar panel systems. However, with incentives and financing options, the investment in solar energy can be offset over time, making it a worthwhile long-term decision.

Despite these initial expenses, many homeowners find that the long-term benefits, such as reduced utility bills and protection against rising energy costs, justify the investment in solar panels. Solar systems for homes offer significant potential savings while contributing positively to the environment.

By understanding the costs involved, homeowners can make informed decisions that align with their financial goals and sustainability efforts. Whether in Oregon or elsewhere, evaluating the various factors influencing solar panel pricing can help ensure that you maximize the value of your investment.

For a more personalized estimate, consider using tools like the EnergySage Solar Calculator5, or contacting a local solar installer to get quotes tailored to your specific situation.

Sources

 

  1. EnergySage. (n.d.). Solar panel costs. EnergySage. Retrieved from https://www.energysage.com/local-data/solar-panel-cost/ 
  2. U.S. Department of Energy. (n.d.). Solar soft costs basics. Retrieved from https://www.energy.gov/eere/solar/solar-soft-costs-basics 
  3. Clackamas County. (n.d.). Solar Permits. Retrieved October 28, 2024, from https://www.clackamas.us/building/solar.html
  4. SunValue. (2023). Why Are Solar Panels So Expensive? Retrieved from https://www.solartap.com/blogs/solar-101/why-are-solar-panels-so-expensive
  5. EnergySage. (n.d.). Solar calculator. EnergySage. Retrieved from  https://www.energysage.com/solar/calculator/