Average Cost of Solar Power and Other Solar Installation Questions Answered
What is the Average Cost of Solar Power?
Are you considering a solar energy system for your home or business in New York? If you are, then you probably have plenty of questions: What’s the average cost of solar power? How much can I save on my electric bills? Is it worth the investment? In this blog, we’ll answer those questions and more.
What Is Solar Price per Watt?
The most important term to know when researching solar power is solar price per watt or PPW. This refers to the cost of your solar panel system per each watt of power it provides. As of November 2019, the average solar panel cost in New York City is $3.78 per watt. All other expenses concerning solar energy are derived from this. Different solar panel companies may charge a little more or less per watt, so it pays to comparison shop. Be wary of any company that charges more than $5.00 per watt.
How Much Do Solar Panels Cost?
Now that you know the PPW, you can quickly figure out the cost of solar panel installation for your home or business. For example, the average solar panel system in New York City delivers 5 kilowatts of energy (5,000 watts). To figure out the cost of a system of that size, it’s just a bit of simple math: 5,000 X $3.78 = $18,900.
Before you go into sticker shock, you should know that the $18,900 price tag is the gross price of the system. You’ll get a 30% Federal Investment Tax Credit (ITC) and other state and local discounts, so the average cost of solar power installation will be thousands of dollars less. New York City has ambitious goals to increase solar panel usage among businesses and residents over the next five years. That means local and state governments will continue to offer incentives to try and make it as easy as possible for you to acquire solar panels.
Why Is the Price per Kilowatt-Hour Important?
Now, the next question you likely have after learning the price of installing a solar panel system is how it will affect your utility bill. Before answering this question, another term needs to be defined first: kilowatt-hour.
A kilowatt-hour (kWh) is a unit of energy that measures how much electricity your system will produce in a specific amount of time. Your utility company charges you per kWh of electricity used—that’s the number you see on your monthly bill. The average price from electric providers in the United States is about 13 cents/kWh.
The average cost of solar power can also be measured in price per kWh by using the net cost of your solar panel. The net cost is how much you paid for installation after all incentives and discounts were factored in. You’ll also want to figure in the expected total kilowatt-hour output of the system over 25 years (your system’s warrantied lifetime). According to solar.com, the average cost of solar power in the United States is 6 to 8 cents per kWh—almost half of what the utility company charges. Whether you own a home, a business, or another commercial property, going solar is a great way to cut costs.
Bottom Line: Is Going Solar Worth It?
When you consider everything that goes into the average cost of solar power in New York, you realize that solar panels are an excellent investment. In New York, the average solar power system will pay for itself in 7 years. Also, a solar panel system will boost the value of the average U.S. property by 3% to 5%. A recent study by the Lawrence Berkley National Laboratory confirms that the nation-wide trend also applies to New York homes.
Plus, let’s not overlook the fact that using cleaner, renewable sources of energy with solar panels will contribute to a healthier New York and a healthier planet.
How Can I Learn More About Going Solar?
If you have questions about solar energy or are interested in other energy-efficient lighting solutions for your home or business, contact Apollo Electric today. Located in the heart of New York City, we are readily available to handle all of your electrical needs promptly and efficiently. We’ve been providing the five boroughs of New York City with exceptional electrical services since 1995.