Most of us know that solar panels are a valuable addition to a home. However, solar panels come with high installation costs.

Fortunately for you, solar panels have never been more affordable than they are today. With that in mind, let’s take a look at exactly how much money solar panels cost.

The Average Cost of Buying 12v Solar Panels

Typically, solar panels are measured in dollars per watt. People install different-sized solar panel systems, so dollars-per-watt is a useful metric.

In 2017, the average price of a solar panel system is between $2.85 and $3.80 USD per watt, including installation and equipment.

The average price of a solar panel system before tax credits and incentives is about $17,000.

The most popular solar panel system size is 5 kW (5,000 watts). When you multiply 5,000 watts by the dollars per watt metric listed above (between $2.85 and $3.80 USD per watt), you get an average price of around $10,000 to $14,000 (after tax credits and incentives).

If that sounds like a lot of money to you, then consider this: prices have dropped 9% since last year. They’ve dropped significantly more in the past decade. A PV system that once cost $50,000 to install can now be installed for under $20,000.

The Average Cost of Solar Panels Based on the Size of your System

Obviously, bigger systems that produce more energy will always cost more. However, the more panels you install, the cheaper your dollars-per-watt rate will be. Here are the approximate average costs for solar panel systems in the United States at different popular sizes (before tax credits):

6kW System: $15,000

8kW System: $20,000

10kW System: $25,000

Ultimately, 5kW systems tend to be particularly popular. They’re affordable for an average homeowner, but still provide a sufficient amount of energy to substantially reduce your energy bill.

How Much Money Can You Save With Tax Credits?

We’ve gone into greater detail about tax credits in other articles on our website, so we won’t go into great detail about tax credits here.

However, you can generally expect to save about 30% off your solar panel installation costs with tax credits. Always check tax credits with your government, state, or jurisdiction. In some cases, you’re better off waiting a few months to install solar panels because a tax credit is coming next year. In other regions, governments are ending tax credit incentive programs – so you should rush to get your solar panels completed before the incentive program ends.

How Much Does It Cost to Install a Single Solar Panel?

Many homeowners are interested in the benefits of solar energy – but can’t afford to spend $15,000 to $20,000 on an entire solar panel system.

Fortunately for these homeowners, you can buy a single solar panel or smaller systems. There’s no rule stating that you need to install a minimum 5kW system. In fact, solar panel companies can install a system as large or small as you like.

Obviously, you’re going to pay a higher cost-per-watt when installing one or two panels at a time. Expect to pay about $250 per panel, on average, across the United States, for a single solar panel (without installation). You can buy solar panels from solar companies in your city, or even from hardware and home improvement stores.