Yes, You Can Afford to Go Solar - The Cost of Solar Panels in 2022

The Cost Of Solar Panels 2021

It's the number one question everyone asks when considering solar panel installation: "How much do solar panels cost?"

The good news is that the cost to install solar electric (photovoltaic) panels on your home has seen a sharp decline over the past decade. A handful of factors determine the final price of a PV system, including its size, component options and configuration, labor costs, local permitting costs and available incentives and tax credits.

From 2010 to 2020, the cost of rooftop solar panels dropped 64%, thanks to greater efficiencies in solar technology, and a reduction in hardware costs.* While long-term trends are on the decline, the residential solar industry is not immune from supply chain issues and pandemic-related market volatility. The escalated price and scarcity of raw materials, as well as elevated shipping costs, have increased the price of rooftop solar over the past several months – a trend that is expected to continue in the first half of 2022 before leveling out. Experts agree that the price spikes are temporary and that we’ll see the cost of solar return to its downward trajectory after these shortages and delays are resolved.*

The price of a solar electric system is measured in dollars per watt, and solar panels are rated in kilowatts (kW). The cost of a residential solar system is currently averaging $3-5 per watt, depending on the state you live in. That means the average 5kW residential system will cost $15,000-$25,000, prior to tax credits or incentives.

While solar prices have continued to decrease, in recent years, they’ve done so at a slower pace and the cost has essentially stabilized.* This means there’s no better time to install solar panels on your home.

But Are Solar Panels Cost-Effective? 

Solar technology is constantly improving. The sharp decline in the cost of solar has been driven largely by the efficiency at which solar cells convert sunlight into clean energy. The real question to ask today is, "Are solar panels cost-effective in 2022?"

The answer is yes. As electricity prices continue to increase across the country, rooftop solar makes more sense from a financial perspective. Most people understand that by installing residential solar panels, you may reduce (or even eliminate) your monthly electricity bill by producing your own clean power right from your rooftop. But did you know that investing in solar today can protect you against future increases in electricity costs?  

The most recent data, pulled from December 2021 by the Energy Information Administration shows that the price of electricity is spiking.* The national average for residential electricity was 14.12 cents per kilowatt-hour (kWh), an increase of 6% compared to one month prior. Hawaii paid the highest electricity rate at 33.97 cents per kWh, followed by California (23.76 cents per kWh), Massachusetts (23.32 cents per kWh) and Rhode Island (22.84 cents per kWh).*

Click on the interactive map below to see how much the price of electricity has increased – or decreased – in your state.

 

What Happened to the Cost of Solar During the Pandemic?

While some industries saw costs increasing across the board during the pandemic, the solar industry remained largely unaffected. A report by the National Renewable Energy Laboratory (NREL) found that costs continued to fall, albeit slightly at 3.25%, in early 2021 for residential solar systems.* The reason? The costs of construction-related raw materials increased during the pandemic, but the total costs of materials either stayed 'relatively the same' or in some cases increased by only a marginal percent, according to the report.

Throughout 2021, Sunnova customers in some of the largest utility territories across America saw their electric bill drop anywhere from a third to half their electricity rate, thanks to residential solar panels. For instance, New Jersey ratepayers saw their electric bill decline an average of 23.1%, while San Diego Gas & Electric customers saw their bill drop nearly 50% after they installed home solar.

Solar Panel Efficiencies Continue to Improve

Solar Products

Solar panels are converting more of the energy from the sun into electricity for a home than ever before, meaning you need fewer panels to generate the same amount of energy.   

Some of the first silicon solar cells in the 1950s had around 6% energy conversion efficiencies.* Due to the many recent advances in solar cell technology over the past five years, average panel conversion efficiency has increased from 15% to 20%.*

The more energy that is converted by a single panel, the fewer panels a home will need.

The average nameplate power output of a standard 72-cell multi-silicon module was around 290 watts in 2010. Today, consumers can expect at least 345 watts, at one-tenth of the 2010 price* .

The upshot is that an average-sized residential system has dropped from a pre-incentive price of $40,000 in 2010 to roughly $20,000 today!*

2022 Federal Solar Tax Credits and State Solar Incentives

When you own your home solar system, you are eligible to apply for  available federal and state incentives and rebates.

In December of 2020, Congress passed an extension of the federal solar Investment Tax Credit (ITC), which provides a 26% tax credit against the costs of the purchase and installation of  residential solar systems installed between 2020 and 2022. Next year in 2023, that credit will decline to 22% for home solar systems. How much will the ITC save a home solar system owner? For a $20,000 system, the 26% federal credit would be $5,200, compared to $4,400 under the 22% credit.*

Several states also offer solar tax credits and solar tax rebates. People who own their solar system and/or battery in participating states may be able to claim these expenses on their local taxes or receive cashback on their installation. While you may be eligible for a solar tax credit or a solar tax rebate with the purchase of a home solar system, please remember that tax incentives are subject to change.

Click on your state to see what credits and incentives you may be eligible to apply for.



Pennsylvania

Pennsylvania Solar Tax Credit

Federal Tax Credit (only for loan products)

  • May be eligible to claim some of the system’s cost as a credit on your federal taxes.

    • Federal tax credit o You may be eligible for a federal tax credit with the purchase of a solar system and/or battery. To qualify for the tax credit, you must have federal income tax liability at least equal to the value of the tax credit. Additional tax credits may also be available for homeowners in certain states. Tax incentives are subject to change or termination by executive, legislative or regulatory action. Sunnova makes no guarantees regarding eligibility of any of the solar system and/or battery’s costs for tax benefits. Sunnova does not provide tax advice. Contact your personal tax advisor for eligibility requirements.
    • Statewide rising utility rates – Note: if you can not add the disclaimer, please use the following language “According to EIA’s state-by-state analysis” o EIA’s state-by-state CAGR Analysis shows an increase in residential electricity rates across all US States since 1990. To see the CAGR Analysis for your state go to EIA Sales and Revenue (1990- Current) – https://www.eia.gov/electricity/data/eia861m/
    • 2017 Power outage data– Note: if you can not add the disclaimer, please use the following language “According to 2017 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2017 - https://switchon.eaton.com/plug/blackout-tracker
    • 2008-2017 Power outage data – Note: if you can not add the disclaimer, please use the following language “According to 2018 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2018 - https://switchon.eaton.com/plug/blackout-tracker

Maryland

Maryland Solar Tax Credits

Federal tax credit (only for loan products)

  • May be eligible to claim some of the system’s cost as a credit on your federal taxes.

 

State Incentives (only for loan products)

  • You may be eligible to earn $1000 rebate check for a PV solar system sized between 1- 20kW.
  • You may be eligible to claim up to 30% of your battery storage costs, up to $5,000, on state income taxes.
  • Earn one Solar Renewable Energy Credit (SREC) for every 1,000 kWh (1.0 Mwh) your solar system produces. The value of the credits can increase or decrease depending upon the SREC market value. You can sell your Certificates directly or with a third-party broker specialized in SRECs.
    • Federal tax credit o You may be eligible for a federal tax credit with the purchase of a solar system and/or battery. To qualify for the tax credit, you must have federal income tax liability at least equal to the value of the tax credit. Additional tax credits may also be available for homeowners in certain states. Tax incentives are subject to change or termination by executive, legislative or regulatory action. Sunnova makes no guarantees regarding eligibility of any of the solar system and/or battery’s costs for tax benefits. Sunnova does not provide tax advice. Contact your personal tax advisor for eligibility requirements.
    • Statewide rising utility rates – Note: if you can not add the disclaimer, please use the following language “According to EIA’s state-by-state analysis” o EIA’s state-by-state CAGR Analysis shows an increase in residential electricity rates across all US States since 1990. To see the CAGR Analysis for your state go to EIA Sales and Revenue (1990- Current) – https://www.eia.gov/electricity/data/eia861m/
    • 2017 Power outage data– Note: if you can not add the disclaimer, please use the following language “According to 2017 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2017 - https://switchon.eaton.com/plug/blackout-tracker
    • 2008-2017 Power outage data – Note: if you can not add the disclaimer, please use the following language “According to 2018 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2018 - https://switchon.eaton.com/plug/blackout-tracker

New Mexico

New Mexico Solar Tax Credits

Federal tax credit (only for loan products)

  • May be eligible to claim some of the system’s cost as a credit on your federal taxes.
    • Federal tax credit o You may be eligible for a federal tax credit with the purchase of a solar system and/or battery. To qualify for the tax credit, you must have federal income tax liability at least equal to the value of the tax credit. Additional tax credits may also be available for homeowners in certain states. Tax incentives are subject to change or termination by executive, legislative or regulatory action. Sunnova makes no guarantees regarding eligibility of any of the solar system and/or battery’s costs for tax benefits. Sunnova does not provide tax advice. Contact your personal tax advisor for eligibility requirements.
    • Statewide rising utility rates – Note: if you can not add the disclaimer, please use the following language “According to EIA’s state-by-state analysis” o EIA’s state-by-state CAGR Analysis shows an increase in residential electricity rates across all US States since 1990. To see the CAGR Analysis for your state go to EIA Sales and Revenue (1990- Current) – https://www.eia.gov/electricity/data/eia861m/
    • 2017 Power outage data– Note: if you can not add the disclaimer, please use the following language “According to 2017 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2017 - https://switchon.eaton.com/plug/blackout-tracker
    • 2008-2017 Power outage data – Note: if you can not add the disclaimer, please use the following language “According to 2018 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2018 - https://switchon.eaton.com/plug/blackout-tracker

New Hampshire

New Hampshire Solar Tax Credits

Federal tax credit (only for loan products)

  • May be eligible to claim some of the system’s cost as a credit on your federal taxes.

 

State Incentives (only for loan products)

  • You may be eligible for a rebate program of $0.20 per watt up to $1,000, or 30% of the cost of the system for solar systems under 10 kilowatts (kW), whichever is less.
    • Federal tax credit o You may be eligible for a federal tax credit with the purchase of a solar system and/or battery. To qualify for the tax credit, you must have federal income tax liability at least equal to the value of the tax credit. Additional tax credits may also be available for homeowners in certain states. Tax incentives are subject to change or termination by executive, legislative or regulatory action. Sunnova makes no guarantees regarding eligibility of any of the solar system and/or battery’s costs for tax benefits. Sunnova does not provide tax advice. Contact your personal tax advisor for eligibility requirements.
    • Statewide rising utility rates – Note: if you can not add the disclaimer, please use the following language “According to EIA’s state-by-state analysis” o EIA’s state-by-state CAGR Analysis shows an increase in residential electricity rates across all US States since 1990. To see the CAGR Analysis for your state go to EIA Sales and Revenue (1990- Current) – https://www.eia.gov/electricity/data/eia861m/
    • 2017 Power outage data– Note: if you can not add the disclaimer, please use the following language “According to 2017 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2017 - https://switchon.eaton.com/plug/blackout-tracker
    • 2008-2017 Power outage data – Note: if you can not add the disclaimer, please use the following language “According to 2018 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2018 - https://switchon.eaton.com/plug/blackout-tracker

Colorado

Colorado Solar Tax Credits

Federal tax credit (only for loan products)

  • May be eligible to claim some of the system’s cost as a credit on your federal taxes.
    • Federal tax credit o You may be eligible for a federal tax credit with the purchase of a solar system and/or battery. To qualify for the tax credit, you must have federal income tax liability at least equal to the value of the tax credit. Additional tax credits may also be available for homeowners in certain states. Tax incentives are subject to change or termination by executive, legislative or regulatory action. Sunnova makes no guarantees regarding eligibility of any of the solar system and/or battery’s costs for tax benefits. Sunnova does not provide tax advice. Contact your personal tax advisor for eligibility requirements.
    • Statewide rising utility rates – Note: if you can not add the disclaimer, please use the following language “According to EIA’s state-by-state analysis” o EIA’s state-by-state CAGR Analysis shows an increase in residential electricity rates across all US States since 1990. To see the CAGR Analysis for your state go to EIA Sales and Revenue (1990- Current) – https://www.eia.gov/electricity/data/eia861m/
    • 2017 Power outage data– Note: if you can not add the disclaimer, please use the following language “According to 2017 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2017 - https://switchon.eaton.com/plug/blackout-tracker
    • 2008-2017 Power outage data – Note: if you can not add the disclaimer, please use the following language “According to 2018 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2018 - https://switchon.eaton.com/plug/blackout-tracker

Texas

Texas Solar Tax Credits

Federal tax credit (only for loan products)

  • May be eligible to claim some of the system’s cost as a credit on your federal taxes.

Utility and City incentives (only for loan products)

  • Austin Energy – you may be eligible to earn $2,500 rebate by completing their solar education course and installing a qualifying solar photovoltaic (PV) system on your home.
  • CoServ Electric Cooperative – you may be eligible to earn isolar rebates on qualified purchases based on kW installed, up to a maximum of $3,100 per residential Member.
  • CPS Energy in San Antonio – you may be eligible to earn a rebate incentive of $2,500 for qualifying residential project.
    • Federal tax credit o You may be eligible for a federal tax credit with the purchase of a solar system and/or battery. To qualify for the tax credit, you must have federal income tax liability at least equal to the value of the tax credit. Additional tax credits may also be available for homeowners in certain states. Tax incentives are subject to change or termination by executive, legislative or regulatory action. Sunnova makes no guarantees regarding eligibility of any of the solar system and/or battery’s costs for tax benefits. Sunnova does not provide tax advice. Contact your personal tax advisor for eligibility requirements.
    • Statewide rising utility rates – Note: if you can not add the disclaimer, please use the following language “According to EIA’s state-by-state analysis” o EIA’s state-by-state CAGR Analysis shows an increase in residential electricity rates across all US States since 1990. To see the CAGR Analysis for your state go to EIA Sales and Revenue (1990- Current) – https://www.eia.gov/electricity/data/eia861m/
    • 2017 Power outage data– Note: if you can not add the disclaimer, please use the following language “According to 2017 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2017 - https://switchon.eaton.com/plug/blackout-tracker
    • 2008-2017 Power outage data – Note: if you can not add the disclaimer, please use the following language “According to 2018 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2018 - https://switchon.eaton.com/plug/blackout-tracker

Connecticut

Connecticut Solar Tax Credits

Federal tax credit (only for loan products)

  • May be eligible to claim some of the system’s cost as a credit on your federal taxes.
    • Federal tax credit o You may be eligible for a federal tax credit with the purchase of a solar system and/or battery. To qualify for the tax credit, you must have federal income tax liability at least equal to the value of the tax credit. Additional tax credits may also be available for homeowners in certain states. Tax incentives are subject to change or termination by executive, legislative or regulatory action. Sunnova makes no guarantees regarding eligibility of any of the solar system and/or battery’s costs for tax benefits. Sunnova does not provide tax advice. Contact your personal tax advisor for eligibility requirements.
    • Statewide rising utility rates – Note: if you can not add the disclaimer, please use the following language “According to EIA’s state-by-state analysis” o EIA’s state-by-state CAGR Analysis shows an increase in residential electricity rates across all US States since 1990. To see the CAGR Analysis for your state go to EIA Sales and Revenue (1990- Current) – https://www.eia.gov/electricity/data/eia861m/
    • 2017 Power outage data– Note: if you can not add the disclaimer, please use the following language “According to 2017 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2017 - https://switchon.eaton.com/plug/blackout-tracker
    • 2008-2017 Power outage data – Note: if you can not add the disclaimer, please use the following language “According to 2018 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2018 - https://switchon.eaton.com/plug/blackout-tracker

Massachusetts

Massachusetts Solar Tax Credits

Federal tax credit (only for loan products)

  • May be eligible to claim some of the system’s cost as a credit on your federal taxes.
    • Federal tax credit o You may be eligible for a federal tax credit with the purchase of a solar system and/or battery. To qualify for the tax credit, you must have federal income tax liability at least equal to the value of the tax credit. Additional tax credits may also be available for homeowners in certain states. Tax incentives are subject to change or termination by executive, legislative or regulatory action. Sunnova makes no guarantees regarding eligibility of any of the solar system and/or battery’s costs for tax benefits. Sunnova does not provide tax advice. Contact your personal tax advisor for eligibility requirements.
    • Statewide rising utility rates – Note: if you can not add the disclaimer, please use the following language “According to EIA’s state-by-state analysis” o EIA’s state-by-state CAGR Analysis shows an increase in residential electricity rates across all US States since 1990. To see the CAGR Analysis for your state go to EIA Sales and Revenue (1990- Current) – https://www.eia.gov/electricity/data/eia861m/
    • 2017 Power outage data– Note: if you can not add the disclaimer, please use the following language “According to 2017 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2017 - https://switchon.eaton.com/plug/blackout-tracker
    • 2008-2017 Power outage data – Note: if you can not add the disclaimer, please use the following language “According to 2018 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2018 - https://switchon.eaton.com/plug/blackout-tracker

Hawaii

Hawaii Solar Tax Credit

Federal tax credit (only for loan products)

  • May be eligible to claim some of the system’s cost as a credit on your federal taxes.

 

State Incentives (only for loan products)

  • May be eligible to claim up to 25% of solar panel costs, up to $1,000, on state income taxes.
  • Federal tax credit o You may be eligible for a federal tax credit with the purchase of a solar system and/or battery. To qualify for the tax credit, you must have federal income tax liability at least equal to the value of the tax credit. Additional tax credits may also be available for homeowners in certain states. Tax incentives are subject to change or termination by executive, legislative or regulatory action. Sunnova makes no guarantees regarding eligibility of any of the solar system and/or battery’s costs for tax benefits. Sunnova does not provide tax advice. Contact your personal tax advisor for eligibility requirements.
  • Statewide rising utility rates – Note: if you can not add the disclaimer, please use the following language “According to EIA’s state-by-state analysis” o EIA’s state-by-state CAGR Analysis shows an increase in residential electricity rates across all US States since 1990. To see the CAGR Analysis for your state go to EIA Sales and Revenue (1990- Current) – https://www.eia.gov/electricity/data/eia861m/
  • 2017 Power outage data– Note: if you can not add the disclaimer, please use the following language “According to 2017 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2017 - https://switchon.eaton.com/plug/blackout-tracker
  • 2008-2017 Power outage data – Note: if you can not add the disclaimer, please use the following language “According to 2018 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2018 - https://switchon.eaton.com/plug/blackout-tracker
    • Federal tax credit o You may be eligible for a federal tax credit with the purchase of a solar system and/or battery. To qualify for the tax credit, you must have federal income tax liability at least equal to the value of the tax credit. Additional tax credits may also be available for homeowners in certain states. Tax incentives are subject to change or termination by executive, legislative or regulatory action. Sunnova makes no guarantees regarding eligibility of any of the solar system and/or battery’s costs for tax benefits. Sunnova does not provide tax advice. Contact your personal tax advisor for eligibility requirements.
    • Statewide rising utility rates – Note: if you can not add the disclaimer, please use the following language “According to EIA’s state-by-state analysis” o EIA’s state-by-state CAGR Analysis shows an increase in residential electricity rates across all US States since 1990. To see the CAGR Analysis for your state go to EIA Sales and Revenue (1990- Current) – https://www.eia.gov/electricity/data/eia861m/
    • 2017 Power outage data– Note: if you can not add the disclaimer, please use the following language “According to 2017 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2017 - https://switchon.eaton.com/plug/blackout-tracker
    • 2008-2017 Power outage data – Note: if you can not add the disclaimer, please use the following language “According to 2018 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2018 - https://switchon.eaton.com/plug/blackout-tracker

Arizona

Arizona Solar Tax Credit

Federal tax credit (only for loan products)

  • May be eligible to claim some of the system’s cost as a credit on your federal taxes.

State Incentives (only for loan products)

  • May be eligible to claim up to 25% of solar panel costs, up to $1,000, on state income taxes.

Utility Incentives (only mention for loan products)

  • SRP Utility Customers – you may be eligible to earn a battery storage incentive in the amount of $300 per kWh-DC, up to $3600, when purchasing a battery and agreeing to participate in the utility’s battery research study.

    • Federal tax credit o You may be eligible for a federal tax credit with the purchase of a solar system and/or battery. To qualify for the tax credit, you must have federal income tax liability at least equal to the value of the tax credit. Additional tax credits may also be available for homeowners in certain states. Tax incentives are subject to change or termination by executive, legislative or regulatory action. Sunnova makes no guarantees regarding eligibility of any of the solar system and/or battery’s costs for tax benefits. Sunnova does not provide tax advice. Contact your personal tax advisor for eligibility requirements.
    • Statewide rising utility rates – Note: if you can not add the disclaimer, please use the following language “According to EIA’s state-by-state analysis” o EIA’s state-by-state CAGR Analysis shows an increase in residential electricity rates across all US States since 1990. To see the CAGR Analysis for your state go to EIA Sales and Revenue (1990- Current) – https://www.eia.gov/electricity/data/eia861m/
    • 2017 Power outage data– Note: if you can not add the disclaimer, please use the following language “According to 2017 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2017 - https://switchon.eaton.com/plug/blackout-tracker
    • 2008-2017 Power outage data – Note: if you can not add the disclaimer, please use the following language “According to 2018 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2018 - https://switchon.eaton.com/plug/blackout-tracker

California

California Solar Tax Credit

Federal Tax Credit (only for loan products)

  • May be eligible to claim some of the system’s cost as a credit on your federal taxes.

 

State Incentives (only for loan products)

  • California Self Generating Incentive Program (SGIP) – Depending on the current step, you may be eligible to receive approximately $250/kilowatt-hour, which means the rebate covers approximately 25 percent of the cost of an average energy storage system.
    • Federal tax credit o You may be eligible for a federal tax credit with the purchase of a solar system and/or battery. To qualify for the tax credit, you must have federal income tax liability at least equal to the value of the tax credit. Additional tax credits may also be available for homeowners in certain states. Tax incentives are subject to change or termination by executive, legislative or regulatory action. Sunnova makes no guarantees regarding eligibility of any of the solar system and/or battery’s costs for tax benefits. Sunnova does not provide tax advice. Contact your personal tax advisor for eligibility requirements.
    • Statewide rising utility rates – Note: if you can not add the disclaimer, please use the following language “According to EIA’s state-by-state analysis” o EIA’s state-by-state CAGR Analysis shows an increase in residential electricity rates across all US States since 1990. To see the CAGR Analysis for your state go to EIA Sales and Revenue (1990- Current) – https://www.eia.gov/electricity/data/eia861m/
    • 2017 Power outage data– Note: if you can not add the disclaimer, please use the following language “According to 2017 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2017 - https://switchon.eaton.com/plug/blackout-tracker
    • 2008-2017 Power outage data – Note: if you can not add the disclaimer, please use the following language “According to 2018 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2018 - https://switchon.eaton.com/plug/blackout-tracker

South Carolina

South Carolina Solar Tax Credit

Federal tax credit (only for loan products)

  • May be eligible to claim some of the system’s cost as a credit on your federal taxes.
    • Federal tax credit o You may be eligible for a federal tax credit with the purchase of a solar system and/or battery. To qualify for the tax credit, you must have federal income tax liability at least equal to the value of the tax credit. Additional tax credits may also be available for homeowners in certain states. Tax incentives are subject to change or termination by executive, legislative or regulatory action. Sunnova makes no guarantees regarding eligibility of any of the solar system and/or battery’s costs for tax benefits. Sunnova does not provide tax advice. Contact your personal tax advisor for eligibility requirements.
    • Statewide rising utility rates – Note: if you can not add the disclaimer, please use the following language “According to EIA’s state-by-state analysis” o EIA’s state-by-state CAGR Analysis shows an increase in residential electricity rates across all US States since 1990. To see the CAGR Analysis for your state go to EIA Sales and Revenue (1990- Current) – https://www.eia.gov/electricity/data/eia861m/
    • 2017 Power outage data– Note: if you can not add the disclaimer, please use the following language “According to 2017 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2017 - https://switchon.eaton.com/plug/blackout-tracker
    • 2008-2017 Power outage data – Note: if you can not add the disclaimer, please use the following language “According to 2018 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2018 - https://switchon.eaton.com/plug/blackout-tracker

Florida

Florida Solar Tax Credit

Federal Tax Credit (only for loan products)

  • May be eligible to claim some of the system’s cost as a credit on your federal taxes.
    • Federal tax credit o You may be eligible for a federal tax credit with the purchase of a solar system and/or battery. To qualify for the tax credit, you must have federal income tax liability at least equal to the value of the tax credit. Additional tax credits may also be available for homeowners in certain states. Tax incentives are subject to change or termination by executive, legislative or regulatory action. Sunnova makes no guarantees regarding eligibility of any of the solar system and/or battery’s costs for tax benefits. Sunnova does not provide tax advice. Contact your personal tax advisor for eligibility requirements.
    • Statewide rising utility rates – Note: if you can not add the disclaimer, please use the following language “According to EIA’s state-by-state analysis” o EIA’s state-by-state CAGR Analysis shows an increase in residential electricity rates across all US States since 1990. To see the CAGR Analysis for your state go to EIA Sales and Revenue (1990- Current) – https://www.eia.gov/electricity/data/eia861m/
    • 2017 Power outage data– Note: if you can not add the disclaimer, please use the following language “According to 2017 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2017 - https://switchon.eaton.com/plug/blackout-tracker
    • 2008-2017 Power outage data – Note: if you can not add the disclaimer, please use the following language “According to 2018 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2018 - https://switchon.eaton.com/plug/blackout-tracker

Illinois

Illinois Solar Tax Credit

Federal tax credit (only for loan products)

  • May be eligible to claim some of the system’s cost as a credit on your federal taxes.
    • Federal tax credit o You may be eligible for a federal tax credit with the purchase of a solar system and/or battery. To qualify for the tax credit, you must have federal income tax liability at least equal to the value of the tax credit. Additional tax credits may also be available for homeowners in certain states. Tax incentives are subject to change or termination by executive, legislative or regulatory action. Sunnova makes no guarantees regarding eligibility of any of the solar system and/or battery’s costs for tax benefits. Sunnova does not provide tax advice. Contact your personal tax advisor for eligibility requirements.
    • Statewide rising utility rates – Note: if you can not add the disclaimer, please use the following language “According to EIA’s state-by-state analysis” o EIA’s state-by-state CAGR Analysis shows an increase in residential electricity rates across all US States since 1990. To see the CAGR Analysis for your state go to EIA Sales and Revenue (1990- Current) – https://www.eia.gov/electricity/data/eia861m/
    • 2017 Power outage data– Note: if you can not add the disclaimer, please use the following language “According to 2017 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2017 - https://switchon.eaton.com/plug/blackout-tracker
    • 2008-2017 Power outage data – Note: if you can not add the disclaimer, please use the following language “According to 2018 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2018 - https://switchon.eaton.com/plug/blackout-tracker

New Jersey

New Jersey Solar Tax Credit

Federal tax credit (only for loan products)

  • May be eligible to claim some of the system’s cost as a credit on your federal taxes.

 

State incentive (only for loan products)

  • Earn 60% of one Transition Renewable Energy Credit (TREC) for every 1,000 kWh (1.0 Mwh) your solar system produces. You can sell your TRECs directly to a TREC administrator.
    • Federal tax credit o You may be eligible for a federal tax credit with the purchase of a solar system and/or battery. To qualify for the tax credit, you must have federal income tax liability at least equal to the value of the tax credit. Additional tax credits may also be available for homeowners in certain states. Tax incentives are subject to change or termination by executive, legislative or regulatory action. Sunnova makes no guarantees regarding eligibility of any of the solar system and/or battery’s costs for tax benefits. Sunnova does not provide tax advice. Contact your personal tax advisor for eligibility requirements.
    • Statewide rising utility rates – Note: if you can not add the disclaimer, please use the following language “According to EIA’s state-by-state analysis” o EIA’s state-by-state CAGR Analysis shows an increase in residential electricity rates across all US States since 1990. To see the CAGR Analysis for your state go to EIA Sales and Revenue (1990- Current) – https://www.eia.gov/electricity/data/eia861m/
    • 2017 Power outage data– Note: if you can not add the disclaimer, please use the following language “According to 2017 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2017 - https://switchon.eaton.com/plug/blackout-tracker
    • 2008-2017 Power outage data – Note: if you can not add the disclaimer, please use the following language “According to 2018 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2018 - https://switchon.eaton.com/plug/blackout-tracker

New York

New York Solar Tax Credit

Federal tax credit (only for loan products)

  • May be eligible to claim some of the system’s cost as a credit on your federal taxes.

 

State incentive (only for loan products)

  • You may be eligible for a solar energy system equipment credit up to 25% of the qualified solar system equipment expenditure, up to $5,000, on state income taxes.
    • Federal tax credit o You may be eligible for a federal tax credit with the purchase of a solar system and/or battery. To qualify for the tax credit, you must have federal income tax liability at least equal to the value of the tax credit. Additional tax credits may also be available for homeowners in certain states. Tax incentives are subject to change or termination by executive, legislative or regulatory action. Sunnova makes no guarantees regarding eligibility of any of the solar system and/or battery’s costs for tax benefits. Sunnova does not provide tax advice. Contact your personal tax advisor for eligibility requirements.
    • Statewide rising utility rates – Note: if you can not add the disclaimer, please use the following language “According to EIA’s state-by-state analysis” o EIA’s state-by-state CAGR Analysis shows an increase in residential electricity rates across all US States since 1990. To see the CAGR Analysis for your state go to EIA Sales and Revenue (1990- Current) – https://www.eia.gov/electricity/data/eia861m/
    • 2017 Power outage data– Note: if you can not add the disclaimer, please use the following language “According to 2017 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2017 - https://switchon.eaton.com/plug/blackout-tracker
    • 2008-2017 Power outage data – Note: if you can not add the disclaimer, please use the following language “According to 2018 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2018 - https://switchon.eaton.com/plug/blackout-tracker

Rhode Island

Rhode Island Solar Tax Credit

Federal tax credit (only for loan products)

  • May be eligible to claim some of the system’s cost as a credit on your federal taxes.

 

State incentive (only for loan products)

  • With the Renewable Energy Fund, Small-Scale Program, you may be eligible to receive $0.85/W incentive when installing a solar system, up to $7,000 per project.
  • Federal tax credit o You may be eligible for a federal tax credit with the purchase of a solar system and/or battery. To qualify for the tax credit, you must have federal income tax liability at least equal to the value of the tax credit. Additional tax credits may also be available for homeowners in certain states. Tax incentives are subject to change or termination by executive, legislative or regulatory action. Sunnova makes no guarantees regarding eligibility of any of the solar system and/or battery’s costs for tax benefits. Sunnova does not provide tax advice. Contact your personal tax advisor for eligibility requirements.
  • Statewide rising utility rates – Note: if you can not add the disclaimer, please use the following language “According to EIA’s state-by-state analysis” o EIA’s state-by-state CAGR Analysis shows an increase in residential electricity rates across all US States since 1990. To see the CAGR Analysis for your state go to EIA Sales and Revenue (1990- Current) – https://www.eia.gov/electricity/data/eia861m/
  • 2017 Power outage data– Note: if you can not add the disclaimer, please use the following language “According to 2017 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2017 - https://switchon.eaton.com/plug/blackout-tracker
  • 2008-2017 Power outage data – Note: if you can not add the disclaimer, please use the following language “According to 2018 Easton Blackout report” o The area of each outage and number of customers affected varied per outage. Source: Eaton Blackout Tracker: United States Annual Report 2018 - https://switchon.eaton.com/plug/blackout-tracker

Washington D.C.

District of Columbia Solar Tax Credit

What is Net Metering and Why is it Important?

Net metering is one way you can financially benefit from installing a residential solar system.

Solar panels tend to make a lot of energy during the middle of the day, and the highest demand for electricity is typically in the evening. If your state supports net metering (many do by now, but to varying degrees), you can receive a credit on your electric bill by sending excess energy back to the grid and reduce your home's net electricity usage.   

Every kilowatt-hour (kWh) of electricity your panels produce reduces your consumption and could reduce your electricity bill, as much as one kWh (if your state offers full-retail rate for net metering). There are a number of different net metering scenarios in different states and utility areas. But understand that you have the ability to further reduce your bill with solar through this arrangement.

What About the Solar Panel Installation Cost for My Home?

If you are curious about how much solar panels cost, it generally depends on a few factors. These include:

  • The size of your home solar system
  • Whether you buy or lease
  • Whether you qualify for federal, state, or local incentives (applicable only when you own the system); and whether you install a battery

When installing solar on your home's roof, there are several factors to consider.

Electricity needs – How much energy you currently consume will directly relate to how big of a solar system you need and how many panels you need to support your home's energy needs.

Where you live – How much sun exposure your home's roof gets will directly correlate to how much energy your solar system can produce and will impact how many panels you need for your home. More sun means more energy produced and a greater potential to save with solar.

Choice of solar panels – Higher-efficiency panels produce more energy more efficiently. The efficiency of the solar panels directly impacts the savings you can experience.

Roof angle - In solar panel installation, it is important to angle the solar panels so they can get maximum exposure to the sun. This is not a problem when the roof is angled, but it can be if the roof is flat. Houses with irregular rooflines, skylights, and challenging angles can make installation more complicated.

Installation labor and project management - Different areas have different regulations regarding the installation of solar panels. In some areas, this process might require the contractor to pay more than the average cost or to spend more time than usual getting the license.

Purchasing options and incentives – The payment option you choose will affect your costs, as well as your eligibility for incentives.

When you buy solar from Sunnova, your rooftop solar system includes parts (solar panels, inverters, mounting equipment, conduit, and other components) and installation labor, as well as project management, including HOA approvals, permitting, and inspections.

Leasing Solar Panels vs. Buying

Sunnova offers several energy plans, so you'll have an easier time choosing an affordable, worry-free solar energy plan for your home. There are pros and cons for each from a cost perspective. See below for a breakdown and things to consider when choosing the right option for you.

When choosing the right payment option, it is also important to consider the following:

  • Do you have enough tax liability to claim a portion of your solar system costs on your federal income taxes? If your taxes are more than your solar credit, a loan/finance agreement may make the most sense since you can take full advantage of the federal tax credit. Even if you don't use it all in the first year, you can "rollover" the remaining credits into future years for as long as the tax credit is in effect.
  • Does your state or utility offer incentives when going solar or installing a battery? If so, a loan/finance agreement may be a great option for you since you would be eligible to apply for these incentives.

Find out more about solar panel financing through Sunnova.

What Impact Does Adding a Battery Have on Solar Panel Cost?

Here are some important things to know about adding battery backup power to your home solar system:

Just as the cost of solar panel installation has drastically diminished over the past few years, the price of lithium-ion batteries has also fallen significantly.

In addition, work is ongoing to make battery technology safer, more powerful and more accessible, bringing a carbon-free energy system ever closer to reality.*

Also, when evaluating the cost of adding a battery to your home solar system, you need to think about the additional benefits you get compared to getting energy from your utility, or even from a solar-only system – it's not necessarily an apples-to-apples comparison; more like apples to oranges.

Unlike a solar-only system or traditional utility energy, a battery enables you to power your most needed lights and appliances during a power outage, and will also protect your from rising peak utility rates. Now those are two distinct advantages that homeowners can appreciate! See how long a home battery backup can power your home with our home battery backup calculator.

In fact, homeowners and businesses are increasingly demanding solar systems that are paired with battery storage. While this pairing is still relatively new, the growth over the next five years is expected to be significant. By 2025, more than 25% of all residential solar systems will be paired with storage, compared to less than 5% in 2019.* 

So Here Is the Bottom Line on Solar Panel Cost vs. Savings

What we know today:

  • The cost to go solar has decreased, while the technology has improved
  • There are several factors to consider when deciding to go solar
  • Battery costs have also declined significantly and have great benefits for the homeowner

Not surprisingly, home solar system configurations can vary greatly, based on all we've learned above. So clearly, the best way – perhaps the only way! –to find out how much it will cost to go solar is to get a quote.

While that may seem obvious, not all quotes are the same. Sunnova dealers will work with you to build a home solar system that meets your energy needs while taking your roof size, shading, and other considerations into account. All while keeping your specific goals in mind.

Talk to a solar expert about making the switch to solar energy today!

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