6 factors that impact how much solar panels cost to installHow much your neighbor spends on solar won't be the same as what you do! Solar panel costs are unique to you and your home's energy needs, and they can vary by six main factors. 1. Energy usage plays the biggest role in how much a solar installation will cost. The amount of energy you use determines how many solar panels you need. The higher your electricity usage, the more panels you need to install, and the more expensive the installation will be. 2. System sizeThe system size you need determines how much you end up paying for solar. Larger systems will cost more money in total, but the cost per watt will often be a bit lower as soft costs are distributed across more total watts. You can think of this like buying a bulk package of paper towels — the total cost of your purchase is higher than if you bought a regular package, but the cost of each roll is lower. 3. Solar equipmentThe you install impacts the final price of a solar system. For example, if you choose premium efficiency panels, you could spend 25% more on the installation but might see better utility bill savings because of additional energy production. Here are a few factors that will impact the cost of solar equipment:Performance: Solar panels with high power output or efficiency ratings often come at a higher price point because they can produce more energy. Premium efficiency solar panels can cost up to 25% more than standard efficiency models. Equipment and solar panel type: Different technologies will have different costs. For example, cost less than microinverters but often have shorter warranties and need to be replaced before the end of the system’s life. Also, opting for equipment like as opposed to conventional solar panels will increase costs.Additional equipment: You can pair your solar panels with to maximize the amount of solar power your home uses and have a source of backup power in case of a power outage. However, batteries will increase overall costs, usually by upwards of $15,000. 4. House and roof characteristics are generally installed on rooftops, so the system’s design largely depends on the roof’s characteristics. Complex roofs with multiple faces, dormers, vents, or skylights can increase installation and design labor costs, but they may also limit the number of panels you can install. The is south-facing roofs, but if your roof faces another direction, you may need to install more panels, increasing your total costs. You may also need a bigger system if your roof gets shaded throughout the day. Even how many stories your home is can directly affect the labor required to install the system.5. LocationWhere you live is another important factor to consider when thinking about solar panel costs, and it can impact the price tag in a few ways:Sun exposure: Solar panels generate more electricity in sunnier states, so fewer solar panels are needed to meet household energy needs, leading to lower overall costs.Labor costs: The cost of labor is different across states and will dictate the final price of going solar. Permitting and inspection costs: Each town and utility has a different set of rules when it comes to the permits and inspections needed for a solar installation, which can make solar slightly more or less expensive compared to neighboring areas. 6. InstallerHow much each charges for a solar installation is different. It can depend on how their business is structured, the margins they need to meet, and the equipment that they use. Because there can be such a large variation in the price charged by installation companies, you should always get quotes from at least three different installers. Join the over 1.5 million Americans who have been connected with trusted solar companies using SolarReviews, Key takeaways Average home solar panel installation costs: $21,816 Average solar panel cost per watt: $3.03 Average cost of solar panels per square foot of living space: $9.34 per square foot Average solar panel loan cost: $26,004 How much you pay to go solar will depend on six factors, including your electricity usage, how many solar panels you install, the incentives you use, and the , Solar panel cost and savings calculator showing how many solar panels your home needs and likely cost based on current solar system prices, savings & payback period..