How Solar Panels Stabilize Energy Costs & Save You Money Long Term
How Solar Panels Stabilize Energy Costs & Save
How Much Do Solar Panels Cost in Colorado?
- August 3, 2023
Solar panels save you money on your electric bills and have an excellent return on investment—a solar panel installation is one of the only home upgrades that will pay for itself over time!
But before you can go solar, you need to know how much a residential solar panel installation costs so you can decide whether it’s worth it for your home. Unfortunately, it’s a tough question to answer. The cost of a solar panel installation can vary significantly depending on a number of factors unique to your home and energy usage.
Average Cost of a Solar Panel Installation in Colorado
Solar panel installation costs have dropped by 54% over the past 10 years in Colorado, according to the Solar Energy Industries Association (SEIA). The average cost of a solar panel installation in Colorado in 2023 ranges from about $3 to $4 per watt. That translates to $18,000 to $24,000 for an average-sized, 6 kW solar panel system. The federal solar tax credit will, however, reduce those out-of-pocket costs by 30 percent. Once the solar tax credit is applied, you can expect to pay closer to $12,600 to $16,800.
It’s important to note that these numbers are only estimates. To find out how much it will cost to have solar panels installed on your home, get your free customized estimate!
Solar Panel Installation Cost Breakdown
There are a few components of a solar installation you have to consider when estimating costs:
- Materials – Solar panels, inverters, batteries, mounting equipment, wiring, and more must be accounted for in your solar estimate.
- Labor costs – The time and effort required to install solar panels on your roof will impact costs.
- Permitting fees – Solar installation requires a building and electrical permit in most areas.
- Incentives – Incentives like the federal solar tax credit help you save on Colorado solar installation costs.
Top Factors that Impact Solar Panel Costs
There are a lot of factors at play when it comes to solar panel installation costs, which is why it’s so difficult to provide a home solar cost estimate without knowing more about your specific situation.
System Size
System size is the most important factor when estimating solar panel costs. Larger systems have more components and take longer to install, which makes them more expensive.
When sizing your system, we consider how much electricity you consume, how much of your electricity usage you want to cover with solar power, and whether your needs will change much in the future. Ideally, your solar panel system will cover the majority of your electricity costs and be able to grow with you as you add new electrical loads like an EV charger to your home.
Amount of Sunlight
The amount of sunlight your roof gets will help determine how many solar panels you need. The more sunlight you have, the fewer panels you need to produce the same amount of electricity, reducing costs. The direction your roof faces and surrounding obstructions that cast shade onto it play an important role in how much sunlight you have access to.
Solar Panel Efficiency
Some solar panels are more efficient than others, which means they can produce more electricity with the same amount of sunlight. Efficiency ratings vary from one panel to another and, generally speaking, solar panels with higher efficiency ratings will be more expensive. But, they’ll also produce more electricity, which means a faster payback period.
Roof Characteristics
Your roof’s size, slope, direction, and shingle type will all impact your solar panel installation costs. While we can install solar panels on almost any type of roof, some are more difficult to work with than others, which can add to the installation costs.
Get Your Free Home Solar Assessment in Colorado
The best way to find out how much it will cost to install solar panels at your home is to schedule an assessment with a local Colorado solar company. Solar Power Pros offers free, virtual assessments that make it easy to get an accurate solar estimate. We’ll ask you a few simple questions about your home and electricity usage and give you a personalized estimate in just a few minutes. We offer excellent financing options and can help you take advantage of solar incentives to save on upfront costs.
