The cost of solar panels depends on a variety of factors. However, the average price of a 6.6 KW solar system is around $5250. Unlike other sources of energy, solar panels are cheap and natural.
However, it is essential to note that the cost of the most suitable and reliable Solar panel system depends on the installation size and your household energy needs. To summarize this below is a table showing the approximate cost of solar panels by size (DC) and City.
| 10kW | 7kW | 6kW | 5kW | 4kW | 3kW | |
| Perth, WA | $7,990 | $5,230 | $4,070 | $3,520 | $3,170 | $2,850 |
| Sydney, NSW | $7,450 | $5,780 | $4,880 | $4,240 | $3,830 | $3,340 |
| Melbourne, VIC | $8,180 | $5,680 | $4,920 | $4,620 | $4,290 | $3,930 |
| Hobart, TAS | $11,210 | $7,330 | $6,870 | $5,990 | $5,600 | $4,960 |
| Darwin, NT | $12,140 | $10,540 | $9,330 | $8,120 | $7,160 | $5,870 |
| Canberra, ACT | $8,990 | $6,550 | $5,780 | $5,040 | $4,700 | $3,770 |
| Brisbane, QLD | $9,350 | $6,470 | $5,160 | $4,720 | $4,280 | $3,830 |
| Adelaide, SA | $8,160 | $6,010 | $4,560 | $4,440 | $4,190 | $3,630 |
| All | $9,180 | $6,700 | $5,700 | $5,090 | $4,650 | $4,020 |
Source: Go Solar Quotes
Factors That Determine Solar Panel Prices
The price of solar panels cannot be generalized. Several factors determine these prices.
- Solar Panel Technologies – The quality of the solar panel is an essential part of it. If the solar panel has more advanced technologies, it is more likely to cost more than the others.
- Size of the Solar System – Solar panels are customarily charged depending on their output per watt. Most companies offer solar panels with an output of 3 to 30 watts.
- State by State Costs – The energy prices in a state determine solar panels’ cost. In some states, the price is different for the same type and size of the solar panel.
- Tax credit – The tax credits vary from year to year, but they are currently at 22%.
After purchasing a solar panel, you might incur other charges like:
- Labor – Different people charge differently, but the average cost of installing a solar panel is $100/hr.
- Upkeep – If a panel is cracked or the glass is broken, the repair costs will be equivalent to the damages.
How to Buy the Best Solar Panel
When buying a solar panel, the first step is determining the size you need. You can work this out by considering the amount of electricity used in the household per day. The second step is figuring out the number of solar panels needed. The quality of the solar panels greatly determines this.
The price of the solar panels is also a vital consideration. If you are going for high-quality ones, then expect to pay a higher price. If you are on a tight budget, you could buy many low-quality panels that will make up for watt output.
It would be best if you were keen when buying solar panels to avoid being misled by fake reviews on the internet. It would help if you also bought your panels from a well-known and reliable company.
How Much Money Will I Save Using Solar Power?
Using solar panels to power your house saves $400+ per year and $50,000 a lifetime by reducing the power bill. Good quality solar systems pay for themselves in 3-5 years after installation; then, it starts getting you returns.
They also generate pollution-free energy for decades before jamming. Solar energy costs are as low as 5 cents a kilowatt-hour, making it the cheapest energy provider.
How do I Qualify for a Tax Credit for Solar Panels?
Tax credits reduce the amount of tax payable to the government. To qualify for the solar tax credit, you must meet the following conditions:
- Have your own house and not a rented one.
- Qualify for the 22% tax credit by having sufficient federal tax liability.
- You must have your solar panels. If the solar panels are leased, then the leasing company claims the tax credit.
Anyone who doesn’t pay for income taxes doesn’t qualify for the tax credit. Solar taxes can be carried back one year and forward in 20 years, meaning if you aren’t eligible to claim all the tax credit in one year, you can claim it in the next 20 years if the tax credit is still effective.
Do I Qualify for a Solar Rebate?
A rebate is a refund offered to people who have paid too much tax. The following qualifications should be met by people seeking for rebate:
- The solar system should be small with a wind or hydro system.
- There shouldn’t be more than one system at home.
- The solar system must be new and complete.
- Application for the rebate funds should be made up to 12 months after installation.
- The installation should be done by a credible professional.
Rebates depend on the size of the solar system installed. If a homeowner has two solar systems in two different addresses, they can get two different rebates.
