It is hard to estimate the cost of home improvement projects because every house is different.
It becomes even more difficult to ascertain the figure when it comes to energy.
Installing solar panels on your residential home may cost you upfront. But, you are making a sound investment in a system that frees you from some of your bills. This is a high return on investment.
For the sake of providing some ballpark of the cost of solar for you to reference as a guide, this article will calculate the cost of installing solar panels for a 2000 square foot house.
Solar Cost Per Square Foot: 2000 Square Foot House
It will cost $7000 to $32,000 to install solar panels for a residential home of 2000 square feet.
This range depends on a number of factors including:
- Your home’s energy needs
- The amount of sun your home receives
- The weather in your area
You will need fewer panels if your 2000 square foot home is located in an area that is generally sunny. This is because each panel will capture more energy from the sun than a panel installed in a less sunny area.
Solar Cost Per Watt: 2000 Square Foot House
An alternative method to calculating the cost of installing residential solar panels is to calculate by cost per watt.
According to the Center for Sustainable Energy, the average cost per watt for a solar electric system ranges from $3 to $5 per watt. Most residential homes need a 6kW system, which is 6000 watts.
Here’s the math:
6000 watts * $3 = $18,000 (cost at $3 per watt)
6000 watts * $5 = $30,000 (cost at $5 per watt)
The cost to install solar panels in a 2000 square foot house calculated by cost per watt ranges from $18,000 to $30,000. This is your cost before tax credits.
Tax Credits And Other Savings
Tax credits, what? Yes, you heard right.
In 2019, the federal government created a tax credit initiative for solar photovoltaic (PV) systems, which will continue to run at least up until the end of 2021.
For the year 2021, the federal solar tax rate is 22%.
This tax credit means you save money when you install a new solar PV system, which you must own and not lease, at your home before the end of 2021. The good news? There’s no maximum amount you can claim.
However, there are conditions you must meet in order to qualify for this federal solar tax credit.
States may have their own tax credit initiatives for installing solar. Be sure to check if you qualify for extra savings from state and local solar incentives.
As a final means of saving on solar costs, you can also partner with solar companies like Blue Raven to help you find and maximize savings.
The best part? Their BluePower Plus+ financing option requires no money down after installation for 18 months–that’s 18 months of free solar power.
Think Long-Term Savings
The cost of installing solar panels for a 2000 square foot house ranges from $7000 to $32,000.
There are different ways to estimate the cost, but your safest bet is to get a quote from a professional solar company. Most would be happy to give you a free quote based on your home’s specific needs.
By just switching to solar, you have already saved a fortune. You reap the rewards of a sound investment.
For more personal finance tips, check out our Finance section!