Introduction
Solar energy has never been more accessible or affordable. With the federal tax credit, state incentives, and falling equipment costs, going solar makes financial sense for many homeowners.
Quick Answer: The average solar installation costs $15,000-$35,000 before incentives, with most homeowners paying $10,000-$20,000 after the federal tax credit. Typical payback period is 6-10 years.This guide covers:
- How solar works and what you need
- Costs and financing options
- Tax credits and incentives
- Choosing an installer
- What to expect during installation
Solar Basics
How Solar Works
- Solar Panels capture sunlight and convert it to DC electricity
- Inverter converts DC to AC electricity for your home
- Electrical Panel distributes power throughout your home
- Net Meter measures electricity exported to the grid
Is Your Home Right for Solar?
Ideal conditions:- South-facing roof (in northern hemisphere)
- Minimal shading from trees or buildings
- Roof in good condition (10+ years remaining life)
- Adequate roof space (100 sq ft per kW needed)
- High electricity rates in your area
- East or west-facing roof (85-90% efficiency)
- Some shading (modern optimizers help)
- Flat roof (panels can be tilted)
- Ground-mounted system
- Community solar program
- Solar carport or pergola
System Sizing & Costs
Sizing Your System
Most homes need 6-12 kW systems. Here's how to estimate: Quick calculation: Annual kWh usage ÷ 1,400 = System size in kW Example: 12,000 kWh/year ÷ 1,400 = 8.5 kW systemCost Breakdown (2026)
| System Size | Before Incentives | After 30% Tax Credit |
|---|---|---|
| 6 kW | $15,000-$18,000 | $10,500-$12,600 |
| 8 kW | $19,000-$24,000 | $13,300-$16,800 |
| 10 kW | $24,000-$30,000 | $16,800-$21,000 |
| 12 kW | $29,000-$36,000 | $20,300-$25,200 |
What's Included
- Solar panels (typically 15-25 year warranty)
- Inverter(s) (10-25 year warranty)
- Mounting equipment
- Electrical work
- Permits and inspections
- Monitoring system
Tax Credits & Incentives
Federal Solar Tax Credit (ITC)
- 30% of total cost (through 2032)
- Steps down to 26% in 2033, 22% in 2034
- Applies to equipment, installation, batteries
- Must own the system (not lease)
- Credits reduce your tax liability dollar-for-dollar
State Incentives
Many states offer additional incentives:- State tax credits (additional 10-25% in some states)
- Rebates ($500-$5,000+)
- Property tax exemptions
- Sales tax exemptions
- SRECs (Solar Renewable Energy Credits)
Net Metering
Most states offer net metering:- Export excess power to grid
- Receive credit on your bill
- Essentially "stores" energy for later use
- Policies vary by state and utility
Return on Investment
Typical Savings Example
Assumptions:- 8 kW system in average US location
- $20,000 cost after tax credit
- $150/month current electric bill
- 90% bill offset
- 2.5% annual electricity rate increase
- Year 1 savings: ~$1,620
- Payback period: ~9 years
- 25-year savings: ~$55,000
- ROI: 175%
Factors Affecting ROI
Better ROI:- High electricity rates
- Good sun exposure
- Strong net metering
- Additional state incentives
- Financing with low interest
- Low electricity rates
- Significant shading
- Poor net metering policies
- High installation costs
- Roof replacement needed soon
Choosing a Solar Installer
Types of Installers
- National Companies: SunPower, Tesla, Sunrun
- Regional/Local Installers:
What to Look For
- [ ] NABCEP certification
- [ ] 5+ years in business
- [ ] Strong reviews and references
- [ ] Detailed proposals with equipment specs
- [ ] Clear warranty terms
- [ ] Proper licensing and insurance
Getting Quotes
- Get 3-5 quotes minimum
- Compare:
- Ask about their installation timeline
- Verify they'll handle permits and inspections
Installation Process
Timeline Overview
- Consultation & Quote (1-2 weeks)
- Site Assessment (1-2 days)
- Design & Permitting (2-8 weeks)
- Installation (1-3 days)
- Inspection (1-2 weeks)
- Utility Approval (1-4 weeks)
Installation Day
- Roof prep and mounting rail installation
- Panel mounting
- Wiring and inverter installation
- System testing
- Cleanup
After Installation
- Final inspection scheduled
- Utility installs net meter
- Monitoring system activated
- Start saving on electricity!
Next Steps
Summary Checklist
- [ ] Review your electricity bills for usage
- [ ] Check roof condition and sun exposure
- [ ] Research state and local incentives
- [ ] Get multiple quotes from installers
- [ ] Compare equipment, warranties, and financing
- [ ] Check installer credentials and reviews
- [ ] Make your decision and enjoy clean energy!