Solar panel system costs and benefits

How much could I save if I install solar panels? How much do solar panels cost? What size system do I need? Check out these success stories to learn more.

Solar energy is free. Yes, but you will need to install solar panels to harvest the power of the sun. Depending on your geographic location, energy use and installation factors, the typical home will require a 2kW to 6kW solar panel system. Based on your energy needs, the upfront costs for equipment and installation could range from $5,000 to $25,000, after rebates and tax credits. That's much cheaper compared to paying your electric utility for 25 years. For example, if your monthly electric bill is around $200, you'll spend more than $80,000 with your traditional electric utility. But if you install solar panels, you could save $45,000 or more.

You could save thousands. In addition to saving money on your electric bill every month, you will also increase the value of your home. The following table provides an illustration of solar panel costs for various system sizes. For example, if you currently pay $400 a month for electricity and install a 3.0 kW solar panel system, the cost could be $13,000, the annual savings could be $2,640 and your home value could increase by $18,360*.

Please note: These are estimates only as of May 2009. There are many factors which may affect costs and savings.
*25 year cost includes 2.5% annual electricity price inflation.