Cost may be the most significant factor preventing people from installing solar panels. Most people would love to save money on electricity and help the environment, but they may not be able to afford the initial installation costs. With this in mind, many households want to know the cost of solar panels.

The cost of a solar installation will vary based on several factors, and you may think that the size of your home is a considerable component. However, you may be surprised to discover that energy use is a more significant factor. Yet, home size can come into play in certain specifics.

Sounds confusing? This article will outline what to expect.

How Does Home Size Affect the Cost of Your Solar Installation?

Potentially, not at all! Energy use is a more important consideration. For example, a 1000-square-foot home with four residents who are constantly on their devices will use more power than a single person living in a 2000-square-foot home. Therefore, the family's panels will be more expensive.

That's not to say that home size isn't a factor in solar installation costs. For example, some people with a large home and plenty of roof space may opt for a larger installation to generate more energy for storage. However, these consumers must consider whether they want to invest in battery storage and whether they believe it is necessary.

Roof size can also be an issue in a small home. Your roof must be large enough to accommodate the necessary number of panels to power your home. If it's not large enough, consider a ground-mounted installation.

How Many Solar Panels Can Fit on My Roof?

If you feel a larger installation is right for you, you may wonder how many solar panels will fit on your roof. Most panels are 3x5 feet, equaling 15 square feet per panel. Therefore, if you have a 450-square-foot roof, you can accommodate 30 panels.

So, what is the cost of each solar panel? That varies depending on the quality of the panel, and we will delve into more detail in a minute. However, the cost of solar is typically based on a cost-per-watt system that varies from state to state.

The average cost per watt in the United States is $2.56 before incentives. At that rate, a mid-quality 11 kW system costs approximately $29,360 before incentives.

Factors That Impact the Cost of Your Solar Installation

The size of your home does not significantly impact the cost of your solar installation. So what does? Here are some factors to consider.

System Size

Your home size may not significantly affect your installation cost, but your system size does. If you require a large number of panels to power your home, you will incur higher installation costs. However, you will also see more long-term savings.

Location

Location factors are as follows:

• Cost: The cost of solar energy varies from state to state, typically based on local demand and living costs.

• Sunlight Exposure: If you live in an area with abundant sunlight, you will likely require fewer panels for energy generation.

• Permitting Costs: Your location may incur high permitting costs, which can increase the overall cost of solar installation.

Incentives and Rebates

The cost of your panels will also be affected by the incentives and rebates available in your area. Typical incentives include the following:

• The Residential Clean Energy Credit: Homeowners who go solar are eligible for a credit on their federal taxes equaling 30% of their installation's value. If the credit exceeds your tax bill, it will roll over into the following year. The program is set to decrease to 26% in 2033 and 22% in 2034 before phasing out completely, making it best to invest sooner rather than later.

• Net Metering/Net Billing: These programs allow you to sell clean energy to your utility company for a credit on your electric bill. With net metering, the credit is based on retail rates. Utility companies that offer net billing provide credits at wholesale rates.

• Tax Exemptions: Many states offer property tax exemptions, meaning your property tax won't increase based on the value your solar installation adds to your home. Some states also don't require you to pay sales tax on your system.

• State Credits and Rebates: Some states offer credits and rebates, which vary by location.

  
  

Solar Panel Efficiency

Some panels are more efficient and expensive than others. Generally, they fall into one of three categories:

• Monocrystalline Panels: These panels are made of single-crystal silicon, which allows electrons to flow freely, leading to higher efficiency and durability. However, they are also more expensive than other panel types. They are typically used in commercial installations as they are often excessive for home use.

• Polycrystalline Panels: These panels are made from multiple silicon crystals melted together to form a single photovoltaic cell. They are not as efficient as their monocrystalline counterparts but are less expensive, making them a good choice for residential installations.

• Thin-Film: Thin-film panels are typically made of cadmium telluride, copper indium gallium selenide, or amorphous silicon. Their lightweight, flexibility, and affordability make them ideal for specific applications. However, they are not as durable or efficient as crystalline panels.

Some panels are of higher quality than others, which makes them more expensive.

Additionally, bifacial panels, which capture sunlight from both the front and back of the panel, are more efficient and often more expensive.

Installation Complexity

Costs may increase if your roof condition or other factors make installations more complex.

Financing Options

Many installers offer financing options that allow you to purchase panels with no down payment. Although financing makes panels more affordable in the short term, it typically includes interest rates that can make them more costly.

Soft Costs

These include design services, permitting, and other administrative expenses. Many contractors will include these services in their overall cost. However, some charge more than others based on what's included. Base your hiring decision on how much value you'll get for your money.

Maintenance

Maintenance can increase the cost of ownership. Panels don't require much maintenance, but needs could vary, especially if you live in an area prone to dust and storms. Many installers include maintenance in their overall costs.

How Much Solar Energy Can My Roof Generate?

Most roofs can generate more energy than the average home needs, proving size is not a factor. But how much energy can your roof generate? Let's find out.

An average-sized roof is 1700 square feet. However, most roofs don't offer 100% usable space due to obstructions. Additionally, only south-facing installations are worthwhile, and installers won't place panels on the edge of your roof.

That leaves you with around 850 square feet of usable space. If you install 400W panels, the average power output for most panels, which are 20 square feet in size and have a 1:3 production ratio, you'll achieve a system size of approximately 16.8 kW, which translates to around 21,840 kWh of energy per year. That’s more than twice the 10,791 kWh average productivity rate for most American households. 

However, this number can vary depending on your location. For example, a state with abundant sunlight, such as Arizona, can generate around 26,660 kWh per year based on a 1.6 production ratio. Meanwhile, a system in Washington, a relatively cloudy state, will create closer to 16,800 kWh based on a 1.0 ratio.

How Much Energy Can You Generate Based on Roof Size?

This chart illustrates the amount of energy you can generate based on roof size, assuming you use 20-square-foot, 400-watt solar panels.

You can use these metrics to determine how much you will pay for your panel based on your state's average solar cost.

What to Consider When Calculating Solar Generation Potential

The chart above reveals an estimation of your yearly energy production. However, production varies depending on the following factors:

Roof Space

The larger your roof, the more panels you can fit and the more energy you will generate.

Location of Sun and Amount of Sunlight

Regardless of how many panels you have on your roof, they won't produce much energy without adequate sunlight. The amount of energy your roof produces is related to its production ratio, the estimated output of the system over time in kWh, and the system's size in watts.

Production ratios vary depending on the amount of sunlight the system receives. In the U.S., ratios typically range from 0:9 to 1.6. For example, Arizona has a 1:6 ratio, while Washington has a 1:1 ratio.

Roof Orientation and Tilt

Optimal conditions for solar production are south-facing roofs with a 30-degree angle of inclination. The closer you get to these metrics, the more energy your system will produce.

Equipment Size, Performance, and Power

Equipment with a high power-to-size ratio will produce more electricity per square foot. However, highly efficient panels are typically more costly.

Solar America Will Help You Connect with the Right Installer for Your Home

Regardless of your solar needs, connecting with the right installers is essential. The ideal installer will ensure that your installation aligns with your energy usage. They will focus on your power output rather than sell you on a bigger system for a larger home.

Solar America will help you find a trusted installer in your area. Complete our online form to receive a list of local providers. Our competitive system ensures the lowest prices.

Contact us when you're ready to embark on your solar journey.