Posted Wednesday, April 17, 2019
What You Should Know About Solar Panel Installation Costs & Financing Options
The financial and environmental benefits of solar battery storage systems make them very attractive to both residential and commercial property owners, but installing one is a significant upfront investment in regards to solar panel installation costs.
Solar Panel Installation Costs
The easiest way to calculate how much a solar panel installation costs is to look at the price in dollars per watts. The average price per watt for solar panels ranges anywhere from $2.67 to $3.43 and the average solar panel installation cost usually ranges from $11,000 to $15,000, after solar tax credits are applied. Solar panel installation costs also depend on how much electricity you want to generate. A bigger system will have a higher installation cost because you’ll need to buy more equipment and more labor will be needed, as well. Installation costs can also vary significantly depending on where you live. In 2019, the average solar panel installation cost in Florida was between $9,198-$11,970, one of the lowest in the nation.
Solar Energy System Financing Options
Since installing a solar energy system is a major investment for most property owners, there are many solar financing options available including solar loans, solar leases, and PPAs.
Solar loans are the perfect financing option for individuals who want to buy their system. With a solar loan, property owners can finance the entire cost of their system. It is important to remember that these types of loans are usually secured using your property as collateral. Some solar loan options also come unsecured. One of the main advantages of buying your solar energy system outright is that you are eligible for federal incentives like the federal investment credit (ITC). Interest on secured solar loans may also be tax deductible, which means additional saving on your income taxes, as well.
Solar Leases & Power Purchasing Agreements (PPAs)
Solar leases and Power Purchasing Agreements (PPAs) essentially allow you to rent your solar PV system, giving you many of the financial benefits of installing a solar power system without actually having to pay for it. With a solar lease or PPA, a third party owner (TPO) will install the solar panels at the property and, in exchange, the property owners will agree to pay them a below-market rate to use the solar electricity from the term of the agreement. The TPO will be responsible for maintaining the solar panels and, at the end of the lease or agreement, they will either remove them or sell the system to you at their fair market value. As the property owner, you do not own the solar panel system and, therefore, you are not eligible for any rebates, tax credits or other incentives offed by the government or your utility company.
Solar Panel Installers Near Me
If you are a property owner in the South Florida area and you are looking for reliable and reputable solar panel installers, then give the solar experts at Urban Solar a call. As one of the most trusted South Florida companies in South Florida, our team of solar energy experts will work one-on-one with you in order to design a solar energy system that fits your budget, property and energy needs. We will guide you through all of the solar financing options available to help you choose the best plan suited for you and your family. If you would like more information about solar panel installation costs, give one of our energy experts a call at 1-888-387-6527.