The Estimated Cost of Solar Panels Installation for the Year 2022
Introduction: It is no surprise that one of the most numerous questions consumers may have when considering making the switch to solar energy for their homes is “How much does it cost?”. For the year 2022, the average residential solar panel installation cost is estimated to fall between $18,000 and $20,000, however, the actual cost of installing solar panels can be steeply reduced once the federal solar tax credit is applied. In this article, we will break down the estimated cost of solar panel installation for the year 2022, including usage and tips for purchasing, the solar tax credit, installing solar panels yourself, long-term savings, and a summary of the key points.
The Average Initial Cost
At the beginning of 2021, the U.S. Department of Energy’s Database of State Incentives for Renewables & Efficiency reported that the average cost of a new home solar panel installation cost approximately $18,000. By the end of 2022, the average cost of the same installation is expected to climb to between $18,000 and $20,000. This estimate takes into consideration the fact that costs for solar panel materials, installation, and maintenance tend to be on the rise. Furthermore, certain regional factors like types of solar panels, panel size, and local overhead costs will determine where your installation costs may lie on this estimated continuum.
Usage & Tips for Purchasing
To reduce the cost of solar panel installation for your home, it is important to understand the factors that can affect the actual expenditure and long-term savings associated with the process. Firstly, when purchasing solar panels, look for a model that fits the energy needs of your home. Research the different types of panels that are available, their production efficiencies, and their points of origin to ensure the highest quality solar system for all energy concerns. Additionally, it is a beneficial practice to investigate all available federal, state, and local incentives and rebates, as this will greatly help in offsetting the initial cost of the solar panel installation.
The Solar Tax Credit
Homeowners looking to offset their costs of solar panel installation may be able to qualify for the federal solar tax credit. This solar tax credit allows taxpayers to deduct 26% of their total cost of solar panel installation off of their federal taxes, leading to a dramatic decrease (up to $5,200!) in the overall costs of the system. Furthermore, homeowners who purchase solar panel systems may be able to qualify for other state and local incentives and rebates which can lead to even more significant reductions in the cost of installation.
Installing Solar Panels Yourself
Furthering the potential reduction of initial costs is the option for homeowners to install their solar panels themselves. However, this route comes with some risks, including the possibility of making a costly mistake in the process. Before attempting to install a solar panel system, homeowners should be sure to research local and regional regulations, including any permits and licenses required for a successful solar panel system installation. Homeowners should also be sure to enlist the help of a professional electrician to ensure the installation is up to code and safe many of the do-it-yourself solar panel installation options en’t designed for homeowners with any electrical installation experience.
When the cost of installation is reduced and the panels are installed, homeowners could begin to see long-term savings on their utility bills due to the lowered reliance on their local electricity provider. In addition to the potential long-term utility bills savings home solar panel systems can provide, homeowners may also qualify for “net metering”, a practice which allows users to sell back their excess solar power to the local utility company at a profit. This process ensures that homes that receive majority of their power from solar sources can be financially beneficial in the long run.
Summary & Conclusion
In conclusion, homeowners considering the installation of a solar panel system for their home should take the estimated cost into consideration and research all possible methods for reducing their out of pocket expenses. With the federal tax credit available for those who purchase solar panel systems, a potential cost reduction of up to 26% can be made, with further cost reductions available through other state and local incentives and rebates. Additionally, homeowners with some electrical experience may consider a do-it-yourself installation, however, electricians should always be consulted before electrical work is done. Finally, the long-term savings associated with converting to a solar based energy system can make the switch even more appealing, as excess energy produced by solar panel systems can be sold back to local utility companies, opening up a potential line of additional income for homeowners. All in all, understanding the cost of solar in 2022 allows homeowners to make informed decisions about making the switch to solar energy for their home.