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Blog Updated: August 2024
It’s exciting to think about the savings you can get by switching to clean solar energy, but when it’s time to actually install solar panels on your roof one of the first questions is this: how much does it cost to go solar, anyway? Let's take a look at the average price of solar in Colorado and what that means for different sized residential solar systems.
Average Cost of Solar Panel Systems
At Namaste Solar, we see home solar panel installation costs range from approximately $20,000 to $50,000 based on a variety of factors. The size of the solar panel system is the most heavily weighted factor in determining cost. The size of your recommended system is based on your electricity usage and is measured in kilowatts (kW). A properly sized solar panel system will maximize your savings and return on investment (ROI).
It's important to note that there are a generous amount of financial incentives available to those who choose to go solar. And most of them are stackable. The 30% federal tax credit saves homeowners $6,000 to $15,000 on average - and that's just one of the incentives available. We've seen system costs be slashed in half once all the financial incentives and rebates are included.
While it can be tempting to focus on the cost of your system, another way to look at it is by considering the projected return on your investment. How much will you save over the life of your system? When compared to the cost of your current electricity bill, solar panels often show thousands of dollars in savings over their lifetime – sometimes paying for themselves twice over. That’s on top of the increase in home value and environmental benefits of solar.
Beware Online Calculators
Most online solar calculators are based on “average” homes and can’t accurately assess the cost and overall savings potential of solar for your specific home. Basing the calculation on the "average" home is about as helpful as looking at the "average" shoe size when shopping for shoes. We’ve checked many of the online solar calculators and found that they don’t provide accurate information, and in many cases are way off. Contact a local solar provider for a customized quote. It’s free and it’ll provide you with the most accurate information.
How Will I Pay For It?
There are a variety of ways to pay for your residential solar system, and your local solar company will help you find the option that’s best for you. One option, of course, is to pay cash up front. This option will allow you to skip interest payments and put the maximum cash savings in your pocket immediately.
A solar loan is also a great option because you can use attractive, low-interest loans and even $0 down financing that allows you to go solar with no upfront cost. Want to get the benefits of your federal solar tax credit immediately without waiting to file your taxes? That’s possible, too. In addition to working with a solar lending partner, there’s also an option to use your own financing options, like a home equity line of credit.
Lastly, some solar installers offer leasing options, meaning you’re essentially renting your own solar panel system. Namaste Solar doesn’t offer or recommend leasing because we don’t think it’s a good financial deal for most customers. Owning your system allows you to capture more of the savings that solar provides.
Solar Savings
The cost of the solar system is important, but there’s also the savings it generates. Each month your system will save you money on your electricity bill, paying for itself and putting cash back in your pocket. The closer your solar panel system can come to offsetting all of your electric usage, the better, and many of our customers are able to offset 100% of their electricity usage with solar.
Further, you can "future proof" your solar system and install a system that's up to 200% of your current energy usage. This allows homeowners more flexibility for the size of their solar systems. It also helps you to maximize your solar savings.
Residential electricity prices increased by 21% between 2007 and 2017 and this upward trend is likely to continue, but your electricity cost is locked in at a much lower rate when your produce your own power. That’s how home solar systems give you independence from rising and unpredictable energy costs while saving you money over time.
Finding Out What You Could Save With Solar
Selecting the right solar company is an important step in the process. To ensure a smooth switch to clean solar, we strongly recommend checking with friends who’ve gone solar and/or reading online reviews. Also, make sure you’re comparing apples to apples with competitive quotes, namely in the system size and kWh production estimates.
The Namaste Solar sales team does not work on commission, so our free quotes are a quick, easy way to find out how much solar can save you. If you decide to work with us, your expert home solar advisor will help you assess the cost and benefits of solar and act as your guide through the design, installation, and activation process. Start a conversation to learn more about solar for your home and to see how much you could save.
