A solar system consists of photovoltaic (solar) panels, power inverter, racking and installation equipment.. The most expensive of these components are the solar panels and they range in price depending on the manufacturer and the efficiency of the panel. Todays, solar installations prices have reached an all-time low of approximately $3.50 per watt. To ensure that consumers receive the greatest return on their investment, each residential solar system should be correctly sized according to the size of the home available sun and the amount of electricity the home consumes. It is not uncommon to start with a smaller system that satisfies the majority of residential needs while leaving room for expansion as demand increases such as plug-in electric powered vehicles.
The typical residential solar system will cost between $12,000-$20,000 once solar incentives are taken into account. However, this is a small price to pay given that you will probably spend over $72,000 on electricity over the life of your solar system.
Ultimately, the true cost of solar will depend on how large you want your system to be and what the available government incentives are when purchasing. Unfortunately, the Federal “Investment Tax Credit” will run out so if you want to purchase a solar system, it is better to act now than risk missing out on money.