How much does a solar system cost per watt?

As of publishing, the average cost per watt is $2.84. Most solar companies set the price according to the solar system's wattage. A solar installation's “cost per watt” is a little like the “price per square foot” when you buy a house. It helps compare the value of solar energy systems in different sizes.

How long does a solar PV system last?

When you purchase a solar PV system, you are essentially buying 25+ years of electricity up front - as this is the expected lifespan of the solar panels. It can therefore be helpful to compare the cost of solar electricity (based on the cost of the system) against the expected cost of grid electricity over that 25 year period.

How much do solar panels cost per kWh?

This typically ranges from 6-8 cents per kWh, compared to current grid electricity averaging 16.44 cents per kWh nationally. Most homes need between 7-12 kilowatts (kW) of solar capacity to offset their electricity usage. A typical American household consuming 10,632 kWh annually requires approximately 8-9 kW of solar panels.

How much does a solar system save on energy costs?

On average, homeowners with a complete solar system save $41,000 to $62,000 on total avoided energy costs over 25 years. It all depends on what your local utility charges for electricity, according to Robert Flores, a solar expert at The University of California, Irvine’s Clean Energy Institute.

Is home solar more affordable than paying for utility electricity?

Although home solar is already more affordable than paying for utility electricity, there are a few ways to reduce the cost of your system and maximize your energy cost savings. First, there are solar incentives offered by federal, state, and local governments, in addition to utility providers.

How do I calculate the cost of solar energy?

We can calculate the cost per unit (kWh) of solar energy by dividing the total electricity generated over 25 years by the combined cost of the system and expected maintenance/inverter replacement cost in that period. For a typical 4kWp PV system, this gives a lifetime cost of 9p/kWh for solar (you can see the full calculation on our blog ).