{"id":83,"count":2,"description":"Solar panel cost per watt, also known as price per watt (PPW), is a very useful measurement for comparing multiple solar quotes to see which provides the best bang for your buck.\r\n\r\nIn this article, we'll explore calculating PPW, how to use PPW to compare solar quotes, and factors that influence solar panel cost.<\/a>\r\n\r\nCompare binding solar quotes from local installers on solar.com<\/a>\r\n

How to calculate solar price per watt (PPW)<\/h2>\r\nCalculating solar price per watt is pretty simple. Simply divide the cost of the system (in dollars) by the size of the system (in watts).\r\n

PPW = System cost \/ System wattage<\/strong><\/p>\r\nNow, solar systems are typically sized in kilowatts (kW), so you'll have to multiply by 1,000 to convert to watts. For example,a 5.5 kW solar system is equivalent to a 5,500 Watt solar system.\r\n\r\nIt's also important to distinguish between the PPW before accounting for incentives (the gross cost of the system) and the PPW\u00a0after\u00a0<\/em>accounting for incentives (the net cost of the system).\r\n\r\nFor example, the PPW of a 5,500 Watt system looks quite different before and after accounting for the 30% tax credit<\/a>.\r\n\r\n\r\n\r\n\r\n\r\n
System size<\/td>\r\nCost<\/td>\r\nPPW<\/td>\r\n<\/tr>\r\n
5,500 Watts<\/td>\r\nGross cost of $19,250<\/td>\r\n$3.50 per watt<\/td>\r\n<\/tr>\r\n
5,500 Watts<\/td>\r\nNet cost of $13,475 (after 30% tax credit)<\/td>\r\n$2.45 per watt<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nAccording to the Solar Energy Industries Association<\/a>, the average price per watt for residential solar projects was $3.27 in the first half of 2023. That is up slightly from a low of $2.92 before the pandemic, but down over 50% from the price of $6.65 per watt in 2010.\r\n\r\n\"solar\r\n

How to compare solar quotes using PPW<\/h2>\r\nKnowing the price per watt of solar is good for two things.\r\n\r\nFirst, PPW allows you to get a ballpark estimate of how much solar would cost for your home.<\/strong> Use this article to see how many solar panels you'd need, and then multiply the size of the system by the SEIA's average PPW of $3.27 to get an estimated cost for the system.\r\n\r\nSecond, it allows you to easily compare solar quotes for various-sized systems.\u00a0<\/strong>\r\n\r\nFor example, let's say you have three different solar companies design a custom solar system for your roof. Chances are, there are going to be slight differences in the size and cost of the systems they design based on their design techniques, equipment pricing, installation costs, and overhead. PPW allows you to make an apples-to-apples comparison of how much solar capacity you are getting for your money.\r\n\r\n\r\n\r\n\r\n\r\n\r\n
Quote<\/td>\r\nSystem size<\/td>\r\nGross cost<\/td>\r\nPPW<\/td>\r\n<\/tr>\r\n
Quote 1<\/td>\r\n5,300 Watts<\/td>\r\n$17,437<\/td>\r\n$3.42<\/td>\r\n<\/tr>\r\n
Quote 2<\/td>\r\n5,500 Watts<\/td>\r\n$17,985<\/td>\r\n$3.27<\/td>\r\n<\/tr>\r\n
Quote 3<\/td>\r\n5,700 Watts<\/td>\r\n$18,525<\/td>\r\n$3.25<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nAt first glance, Quote 1 seems like the best deal because it has the lowest sticker price. However, when you calculate the PPW for each quote, you find that Quote 3 provides the most bang for your buck at $3.25 per Watt.\r\n\r\nIn general, larger solar systems have a lower price per watt. That's because soft costs (permitting, installation, inspection, customer acquisition, and overhead) are roughly the same from project to project and don't add capacity to the system.\r\n\r\nHere are some other factors that influence the price per watt of a solar system.\r\n

What influences the price per watt of a solar system?<\/h2>\r\n

System size<\/h3>\r\nThis is a factor of economy of scale. An installer needs to roll a truck to your house whether it\u2019s a 5 kilowatt system or a 20 kilowatt system. There are fixed costs that go into this.\r\n\r\nFor example, the installer will need to pull a permit for your project, regardless of the size of your project. This fixed permitting cost will be more expensive for a smaller solar array, relative to the other costs.\r\n\r\nThe larger the system, the lower the installer can offer you on a price per watt basis.\r\n

System Adders<\/h3>\r\nThere are certain added costs -- known as \"adders\" -- that may be included in the solar cost per watt.\r\n\r\nSome examples of adders include:\r\n