{"id":79,"count":7,"description":"<span style=\"font-weight: 400\">Getting a sense of how much <a href=\"https:\/\/www.solar.com\/learn\/solar-panel-cost\/\" target=\"_blank\" rel=\"noopener\">solar panels cost<\/a> \u2014 even before you are serious about going solar \u2014 is important for several reasons.<\/span>\r\n\r\n<span style=\"font-weight: 400\">First, it gives you a baseline so you can easily spot scams and solar quotes that are too good to be true. Second, it takes the edge off sticker shock. And third, it gives financial goals to start working toward by saving money and\/or improving your credit to qualify for financing.<\/span>\r\n\r\n<span style=\"font-weight: 400\">In this article, we\u2019ll explore:<\/span>\r\n<ul>\r\n \t<li><a href=\"#how\">How to use our solar panel cost calculator<\/a><\/li>\r\n \t<li><a href=\"#save\">How people save money with solar panels<\/a><\/li>\r\n \t<li><a href=\"#cali\">Calculating solar costs in California<\/a><\/li>\r\n \t<li><a href=\"#why\">Why use a solar cost calculator?<\/a><\/li>\r\n \t<li><a href=\"#cheaper\">Will solar panels get cheaper this year?<\/a><\/li>\r\n \t<li><a href=\"#cons\">Drawbacks of solar panels<\/a><\/li>\r\n<\/ul>\r\n<span style=\"font-weight: 400\">Our goal, as always, is to give you the tools and knowledge to make educated decisions during the solar process.<\/span>\r\n<h2>How to use our solar panel cost calculator<\/h2>\r\n<span style=\"font-weight: 400\">Solar.com offers a <\/span><a href=\"https:\/\/www.solar.com\/calculator\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">free solar cost calculator<\/span><\/a><span style=\"font-weight: 400\"> that uses Google\u2019s Project Sunroof and real-time utility rates to estimate how much you can save by going solar.<\/span>\r\n\r\n<span style=\"font-weight: 400\">Using the calculator is easy. Click the link above to open it in a new tab, and we\u2019ll talk you through how to use it!<\/span>\r\n\r\n<span style=\"font-weight: 400\">First punch in your address and use the slider to set your average monthly utility electricity bill.\u00a0<\/span>\r\n\r\n<span style=\"font-weight: 400\">Next, select a financing preference (cash or loan) and decide whether you want to add home battery storage. Don\u2019t fret about your initial settings, as they can easily be adjusted.<\/span>\r\n\r\n<img class=\"aligncenter size-medium\" src=\"https:\/\/assets.solar.com\/wp-content\/uploads\/2023\/05\/how-to-use-the-solar-panel-cost-calculator.png\" width=\"461\" height=\"468\" \/>\r\n\r\n<span style=\"font-weight: 400\">Once you\u2019ve set your inputs, the calculator will generate a side-by-side comparison of your electricity costs before and after going solar. Let\u2019s walk through some of the estimates and assumptions so you have a better understanding of what the results mean.<\/span>\r\n\r\n<img class=\"aligncenter size-medium\" src=\"https:\/\/assets.solar.com\/wp-content\/uploads\/2023\/05\/solar-cost-calculator-results-page-e1685026832323.png\" alt=\"solar panel cost calculator savings estimates for 20-year loan\" width=\"800\" height=\"426\" \/>\r\n\r\n<span style=\"font-size: 10pt\"><i><span style=\"font-weight: 400\">Saving estimates for a solar system in Westchester County, New York financed with a 20-year solar loan.<\/span><\/i><\/span>\r\n<h3>Monthly payment<\/h3>\r\n<span style=\"font-weight: 400\">For a cash purchase, your average monthly electric bill with solar panels is essentially flat fees that can\u2019t be offset by net metering and any leftover electricity bill (this mostly pertains to California).\u00a0<\/span>\r\n\r\n<span style=\"font-weight: 400\">If you selected financing, the monthly payment represents your loan payment for a 20-year loan.<\/span>\r\n\r\n<span style=\"font-weight: 400\">Your actual loan payments may vary based on current interest rates. It\u2019s also worth noting that <\/span><a href=\"https:\/\/www.solar.com\/learn\/solar-loans\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">solar loan terms<\/span><\/a><span style=\"font-weight: 400\"> can be anywhere from 5 to 25 years.<\/span>\r\n\r\n<span style=\"font-weight: 400\">This section essentially answers the question: How much money do you save a month with solar panels?<\/span>\r\n\r\n<span style=\"font-weight: 400\">Simply subtract your after-solar payment from the before-solar payment to get a sense of your potential monthly savings.<\/span>\r\n<h3>Bill reduction<\/h3>\r\n<span style=\"font-weight: 400\">This figure represents how much of your utility bill you're likely to offset in the first year of having solar panels.\u00a0<\/span>\r\n\r\n<span style=\"font-weight: 400\">If your loan payments are higher than your average utility bill, your bill reduction will show up as zero. However, that doesn\u2019t mean you won\u2019t save money in the long run by going solar.<\/span>\r\n<h3>Lifetime energy cost<\/h3>\r\n<span style=\"font-weight: 400\">If you select cash, this is essentially the estimated cost of your solar system and any flat fees your system can\u2019t offset.<\/span>\r\n\r\n<span style=\"font-weight: 400\">If you select a 20-year loan, this is a combination of the cost of the system, flat fees, and interest payments.<\/span>\r\n<h3>Lifetime savings<\/h3>\r\n<span style=\"font-weight: 400\">This is the difference between the lifetime energy cost before solar and after solar. This is much higher for cash purchases because there aren\u2019t any interest payments.<\/span>\r\n<h3>Average electricity rate<\/h3>\r\n<span style=\"font-weight: 400\">Before solar, this represents the average utility rate over the next 20 years, assuming annual rate hikes between 3-5% (based on location).\u00a0<\/span>\r\n\r\n<span style=\"font-weight: 400\">After solar, this is essentially your lifetime energy cost divided by the total production of your system. Here\u2019s how that looks for the example system above:<\/span>\r\n<p style=\"text-align: center\"><b>$45,102 \/ 242,483 kWh = 18.6 kWh\u00a0<\/b><\/p>\r\n<span style=\"font-weight: 400\">If you select cash purchase, the cost per kWh should be substantially lower.<\/span>\r\n<h3><span style=\"font-weight: 400\">Available incentives<\/span><\/h3>\r\n<span style=\"font-weight: 400\">This is an estimate of the <a href=\"https:\/\/www.solar.com\/learn\/solar-rebates-by-state\/\" target=\"_blank\" rel=\"noopener\">solar incentives<\/a> available in your selected area, including:<\/span>\r\n<ul>\r\n \t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The 30% federal solar tax credit*<\/span><\/li>\r\n \t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">State tax credits and rebates<\/span><\/li>\r\n \t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Municipal and utility incentives<\/span><\/li>\r\n<\/ul>\r\n<em>*Update: With the <a href=\"https:\/\/www.solar.com\/learn\/trumps-one-big-beautiful-bill-is-now-law-how-it-impacts-solar\/\" target=\"_blank\" rel=\"noopener\">\"One Big Beautiful Bill\" signed into law<\/a>, the homeowner-claimed solar tax credit expires at the end of 2025. In 2026 &amp; 2026, a federal solar tax credit will only be available to <a href=\"https:\/\/www.solar.com\/learn\/solar-lease\/\" target=\"_blank\" rel=\"noopener\">residential leases<\/a> and PPAs.<\/em>\r\n\r\n<span style=\"font-weight: 400\">We\u2019ll be the first to point out that this calculator is based on assumptions and does <\/span><i><span style=\"font-weight: 400\">not <\/span><\/i><span style=\"font-weight: 400\">represent a binding solar quote. However, it can give you a pretty accurate estimate of how much solar can reduce your energy costs.\u00a0<\/span>\r\n\r\n[pnpZip background=true border=true primary_color=\"#8b72d3\" content_texts=true utm_campaign=\"solar_cost_calculator\" utm_medium=\"banner\" upper_text= \"Compare binding quotes from\" upper_text_span = \"trusted installers\" lower_text= \"See how much solar could lower your\" lower_text_span = \"energy costs\" get_started_text = \"Get started\"]\r\n<h2><\/h2>\r\n<h2>Do you really save money with solar panels?<\/h2>\r\n<span style=\"font-weight: 400\">It\u2019s often hard to imagine spending $25,000 to <\/span><i><span style=\"font-weight: 400\">save <\/span><\/i><span style=\"font-weight: 400\">money on electricity costs, but people really do save money with solar panels.<\/span>\r\n\r\n<span style=\"font-weight: 400\">One way to picture going solar is buying 25+ years of electricity at a bulk rate. Not only are you getting it at a discounted rate, but going solar <\/span><i><span style=\"font-weight: 400\">flattens <\/span><\/i><span style=\"font-weight: 400\">your electricity costs while utility electricity costs vary month to month and gradually rise over time.<\/span>\r\n\r\n<span style=\"font-weight: 400\">In many ways, going solar is similar to buying a house. A mortgage can be more expensive than renting at first. However, it becomes the more affordable option over time as rent rates increase and your mortgage payments stay the same.<\/span>\r\n\r\n<span style=\"font-weight: 400\">The graph below shows how ever-rising utility rates are much more expensive to pay for than solar panels over the 25-year life of a solar system.<\/span>\r\n\r\n<img class=\"aligncenter wp-image-10921 size-large\" src=\"https:\/\/assets.solar.com\/wp-content\/uploads\/2023\/05\/how-much-do-you-save-per-month-with-solar-panels-1024x795.png\" alt=\"how much do you save per month with solar panels\" width=\"1024\" height=\"795\" \/>\r\n<h2><\/h2>\r\n<h2>Using the solar panel cost calculator in California<\/h2>\r\n<span style=\"font-weight: 400\">When it comes to home solar, California is, in many ways, an entirely different world than the rest of the US \u2013 especially with <\/span><a href=\"https:\/\/www.solar.com\/learn\/nem-3-0-proposal-and-impacts-for-california-homeowners\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">NEM 3.0 in effect<\/span><\/a><span style=\"font-weight: 400\">.<\/span>\r\n\r\n<span style=\"font-weight: 400\">NEM 3.0 solar billing essentially reduced export rates by 75% for customers of PG&amp;E, SCE, and SDG&amp;E that go solar after April 15, 2023.\u00a0<\/span>\r\n\r\n<span style=\"font-weight: 400\">With lower export rates, it\u2019s harder to completely offset your monthly bill, and NEM 3.0 customers will typically have leftover electricity consumption to pay for. As such, the lifetime savings for solar-only systems isn\u2019t as great as it is under 1-to-1 net metering.<\/span>\r\n\r\n<img class=\"aligncenter size-medium\" src=\"https:\/\/assets.solar.com\/wp-content\/uploads\/2023\/05\/solar-panel-cost-calculator-california.png\" alt=\"solar cost calculator for California with NEM 3.0 solar billing\" width=\"1219\" height=\"663\" \/>\r\n\r\n<span style=\"font-size: 10pt\"><i><span style=\"font-weight: 400\">Savings estimates for a cash purchase in California under NEM 3.0 solar billing.<\/span><\/i><\/span>\r\n<h3>Is it still worth it to get solar panels in California?<\/h3>\r\n<span style=\"font-weight: 400\">Absolutely! <\/span><span style=\"font-weight: 400\">The calculator page above shows that solar still provides tens of thousands in savings under NEM 3.0. <\/span>\r\n\r\n<span style=\"font-weight: 400\">However, the key to maximizing savings under NEM 3.0 is to pair solar with <a href=\"https:\/\/www.solar.com\/learn\/solar-battery\/\" target=\"_blank\" rel=\"noopener\">battery storage<\/a> so that you are exporting as little solar production as possible.<\/span>\r\n\r\nThe video below walks through some tips to maximize the savings of a NEM 3.0 solar system.\r\n\r\n<iframe src=\"\/\/www.youtube.com\/embed\/pPGxap6ucPM?si=Wp7-lP11m9MKzUmH\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe>\r\n\r\n<a href=\"https:\/\/www.solar.com\/dashboard\">See how much solar can reduce your electricity costs.<\/a>\r\n<h2><a id=\"why\"><\/a>Why use a solar cost calculator?<\/h2>\r\n<span style=\"font-weight: 400\">We find that understanding the average cost of solar panels empowers homeowners to make better decisions when they get serious about comparing solar quotes.\u00a0<\/span>\r\n\r\n<span style=\"font-weight: 400\"><strong>Think of using the calculator like checking the Kelly Blue Book value of a car you want to buy.<\/strong> Just having a baseline <\/span><span style=\"font-weight: 400\">solar panel cost<\/span><span style=\"font-weight: 400\"> can help you avoid scams, reduce sticker shock, and give you a head start on saving up cash or improving your credit to secure financing.<\/span>\r\n\r\n<span style=\"font-weight: 400\">With that in mind, there are some limitations to using a solar calculator that it\u2019s worth pointing out, like a more granular breakdown of solar costs.<\/span>\r\n<h3>How do I estimate solar installation costs?<\/h3>\r\n<span style=\"font-weight: 400\">First, the calculator doesn\u2019t go into detail about how it came up with the cost of the solar system. That\u2019s largely because every project is different and it would require additional assumptions.<\/span>\r\n\r\n<span style=\"font-weight: 400\">So, how do you estimate things like solar panel installation labor cost or the cost difference of using the best solar panels versus cheaper ones?<\/span>\r\n\r\n<span style=\"font-weight: 400\">One way is to use the solar panel installation cost breakdown below, which is based on Q1 2022 data analyzed by the National Renewable Energy Laboratory (NREL).<\/span>\r\n\r\n<img class=\"aligncenter wp-image-10383 size-large\" src=\"https:\/\/assets.solar.com\/wp-content\/uploads\/2023\/01\/solar-system-cost-breakdown-1024x860.png\" alt=\"solar system cost breakdown\" width=\"1024\" height=\"860\" \/>\r\n\r\n<span style=\"font-weight: 400\">NREL found that in 2022 solar panel installation labor cost made up around 5% of the total cost of residential solar projects and the cost of the solar panel modules makes up around 18%.<\/span>\r\n\r\n<span style=\"font-weight: 400\">So, if the calculator gave you a lifetime energy cost of $26,099 for a cash purchase, you can estimate that installation labor will make up around $1,300 and the solar modules themselves cost around $4,700.<\/span>\r\n\r\n<span style=\"font-weight: 400\">The big takeaway is that, compared to non-labor soft costs, the cost of labor and solar modules make up a relatively small chunk of the overall project cost. With that information, you may decide that holding out for cheaper labor or hardware is not an effective \u2013 or recommended \u2013 way to reduce the cost of a solar system.<\/span>\r\n\r\n[pnpZip background=true border=true primary_color=\"#8b72d3\" content_texts=true utm_campaign=\"solar_cost_calculator\" utm_medium=\"banner\" upper_text= \"Compare binding quotes from\" upper_text_span = \"trusted installers\" lower_text= \"See how much solar could lower your\" lower_text_span = \"energy costs\" get_started_text = \"Get started\"]\r\n<h2><\/h2>\r\n<h2>Will solar panels get cheaper in 2023?<\/h2>\r\n<span style=\"font-weight: 400\">There are competing market forces pushing and pulling the price of solar panels in 2023. These include supply chain tangles leftover from the pandemic, trade tariffs, a surge in US manufacturing, and local policy changes.<\/span>\r\n\r\n<span style=\"font-weight: 400\">In the 2010s, the price of solar panels plummeted at a tremendous rate as technology improved and solar adoption hit critical mass. This trend was uprooted during the pandemic as shutdowns and materials shortages tied supply chains into knots and increased the price of, well, everything.<\/span>\r\n\r\n<span style=\"font-weight: 400\">This is illustrated in the chart below.<\/span>\r\n\r\n<img class=\"aligncenter size-medium\" src=\"https:\/\/assets.solar.com\/wp-content\/uploads\/2023\/05\/will-solar-panels-get-cheaper-in-2023.png\" alt=\"will solar panels get cheaper in 2023?\" width=\"1117\" height=\"775\" \/>\r\n\r\n<span style=\"font-weight: 400\">With inflation leveling off, it seems there\u2019s a chance solar panels will get cheaper in 2023. For example, the price of polysilicon -- a main ingredient in solar panels -- has been on a steady decline in 2023, suggesting that module prices could follow.<\/span>\r\n\r\n<img class=\"aligncenter size-medium\" src=\"https:\/\/assets.solar.com\/wp-content\/uploads\/2023\/05\/cost-of-polysilicon.png\" alt=\"falling price of polysilicon in 2023\" width=\"1083\" height=\"766\" \/>\r\n\r\n<span style=\"font-weight: 400\">It's also worth paying attention to the massive boom in US solar panel manufacturing spurred by incentives in the <a href=\"https:\/\/www.solar.com\/learn\/inflation-reduction-act\/\" target=\"_blank\" rel=\"noopener\">Inflation Reduction Act<\/a> and<\/span><span style=\"font-weight: 400\"> how it affects solar panel prices.<\/span>\r\n\r\n<span style=\"font-weight: 400\">Manufacturing modules in the US should cut down shipping costs and make panels more readily available. On the other, the US has higher labor standards and wages, which could make locally manufactured panels more expensive.<\/span>\r\n\r\n<span style=\"font-weight: 400\">Finally, we\u2019re already seeing solar prices decrease in California as a result of NEM 3.0. After taking effect on April 15, 2023, demand for home solar in California tumbled, leading many installers to drop their prices.<\/span>\r\n<h3>Reducing soft costs with SolarAPP+<\/h3>\r\n<span style=\"font-weight: 400\">The other thing to keep an eye on is a new software called SolarAPP+ that promises to streamline the permitting process of residential solar projects and thereby reduce timelines and soft costs.<\/span>\r\n\r\n<span style=\"font-weight: 400\">Colorado recently set aside $1 million to help communities adopt SolarAPP+ and CALSSA estimates that 66% of Californians could soon be covered by the new software.<\/span>\r\n\r\n<span style=\"font-weight: 400\">Non-labor soft costs account for 44% of residential solar costs, so the adoption of SolarAPP+ could have a substantial impact on lowering solar costs.<\/span>\r\n<h2><\/h2>\r\n<h2>What are the negatives of solar panels?<\/h2>\r\n<span style=\"font-weight: 400\">The other thing our calculator doesn\u2019t show is the downsides of solar panels. Every energy source has its pros and cons, and rooftop solar is no exception.<\/span>\r\n<h3>Intermittent energy production<\/h3>\r\n<span style=\"font-weight: 400\">Perhaps the most obvious downside to solar panels is that they can\u2019t produce electricity without sunlight. This leads to intermittent production, which requires solar owners to have access to net metering or battery storage for solar to make sense.<\/span>\r\n\r\n<span style=\"font-weight: 400\"><a href=\"https:\/\/www.solar.com\/learn\/what-is-net-energy-metering\/\" target=\"_blank\" rel=\"noopener\">Net metering<\/a> is the billing structure that allows solar owners to earn credit for the excess energy they push onto the grid. This credit is used to offset the cost of electricity they pull off the grid when their panels aren\u2019t producing.<\/span>\r\n\r\n<img class=\"alignnone size-full wp-image-6078\" src=\"https:\/\/s3.amazonaws.com\/solarassets\/wp-content\/uploads\/2019\/06\/Solar_Home_Net_Metering.jpg\" alt=\"net metering illustration\" width=\"1000\" height=\"609\" \/>\r\n\r\n<span style=\"font-weight: 400\">Most states have net metering policies. However, there are ongoing efforts by utility providers in many states to weaken or remove net metering altogether. Following the approval of NEM 3.0 in California, it\u2019s expected that states will follow suit and adopt less favorable solar billing policies in coming years.<\/span>\r\n<h3>Cost barriers<\/h3>\r\n<span style=\"font-weight: 400\">The second negative of solar panels is that they are still cost-prohibitive to many low- and moderate-income households.\u00a0<\/span>\r\n\r\n<span style=\"font-weight: 400\">Solar panels typically cost around $25,000 (before incentives). Many homeowners don\u2019t have that kind of cash lying around <\/span><i><span style=\"font-weight: 400\">or <\/span><\/i><span style=\"font-weight: 400\">strong enough credit to qualify for financing. This creates a barrier to rooftop solar and the energy cost savings it provides.<\/span>\r\n\r\n<span style=\"font-weight: 400\">Furthermore, there\u2019s a theory that residential solar makes grid electricity more expensive for low-income households that can\u2019t afford to install solar panels. This \"cost shift\" theory posits that utilities make up for lost payments from higher-income households with solar panels by increasing rates for the lower-income households that can\u2019t afford to go solar.<\/span>\r\n<h3>Scams and shoddy installers<\/h3>\r\n<span style=\"font-weight: 400\">Finally, the solar industry is not without its <a href=\"https:\/\/www.solar.com\/learn\/solar-panel-scams\/\" target=\"_blank\" rel=\"noopener\">scams<\/a> and shoddy installers that make life more difficult for everyone. Most solar panel regrets stem from nightmare experiences with installers who provide poor quality work and worse customer service.\u00a0<\/span>\r\n\r\n<span style=\"font-weight: 400\">At the end of the day, installing solar panels is a construction project and it\u2019s important to hire a reputable contractor with a track record of excellent workmanship.<\/span>\r\n\r\n<span style=\"font-weight: 400\">On solar.com, we make finding local installers you can trust easy because we do the work of rigorously vetting every solar company in our network. In fact, fewer than 30% of the installers that apply to our network are accepted.<\/span>\r\n<h2>Recap<\/h2>\r\n<span style=\"font-weight: 400\">Our solar cost calculator is a great tool for getting a sense of how much solar costs and how much you can save by going solar. However, every calculator is limited by its assumptions and its results should be taken with a grain of salt.<\/span>\r\n\r\n<span style=\"font-weight: 400\">Getting a baseline idea of how much solar panels cost can help you enter the solar process more informed and confident.\u00a0<\/span>\r\n\r\n<span style=\"font-weight: 400\">Like all energy sources, rooftop solar has its pros and cons. However, it is one of the few ways to take control of your essential electricity costs and reduce your dependence on a utility provider.<\/span>\r\n\r\n<span style=\"font-weight: 400\">To see <\/span><i><span style=\"font-weight: 400\">exactly <\/span><\/i><span style=\"font-weight: 400\">how much solar costs for your home, <\/span><a href=\"https:\/\/www.solar.com\/dashboard\"><span style=\"font-weight: 400\">get binding quotes from vetted installers on solar.com.<\/span><\/a>","link":"https:\/\/www.solar.com\/learn\/solar-calculator\/","name":"Solar Panel Cost Calculator","slug":"solar-calculator","taxonomy":"category","parent":4,"meta":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.5 (Yoast SEO v19.10) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Solar Panel Cost Calculator - Estimate Your Solar Savings | Solar.com<\/title>\n<meta name=\"description\" content=\"Solar.com upgraded its solar calculator to help homeowners pick the best solar panels for their homes. 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