How Much Does it Cost to Install a Solar Energy System in 2021?

– My name is Charles Fox. – And I'm Warren Miller, and in this video, we're gonna talk about the cost of solar in 2021. (upbeat music) – What goes into a solar project? What are all those costs? You got your panels,
you got your inverters, you got your wiring, your racking, you have your soft costs. There's a lot of different components and time into developing a solar project. It's more than just the panels. A lotta times people look
at the cost of a panel and say, "Okay, a solar
project should cost "the panel times the cost per panel, "and that should be my overall cost." The reality is, there's
a lot of other pieces that go into the overall
cost of a solar project. – Yeah, so let's talk, Charles, about your average home, a residential solar project. In 2021, if you've got an electric bill of $120 or $150 a month, what's that gonna cost you, in terms of an upfront investment as well as a long-term
cost of electricity? – As I stated before,
there's a lot of variables, but just a general total
cost of a solar project.

This is a turnkey, this is including everything that's in it. It's probably gonna be around $30,000, just to give you a rough number. – That's the total cost. Then you have all the incentives that we've talked about, here and in other videos, so your net cost on that system might be closer to $20,000. – That's right. – If you're looking at a better way to pay for your electricity, if you continue paying electricity the way you are for your home, you're probably gonna
pay $60,000 or $70,000 for electricity over the next 30 years. Whereas, for that same
amount of electricity, you could pay $20,000 by going solar. – Let's talk about the cost now, in terms of a business or a farm. For a larger project, and that's using maybe a $1200 a month electric bill, you're gonna probably spend 200 to $225,000 on a project that size.

– Keep in mind though, the incentives on a commercial project or
an agricultural project include depreciation as well, so the net cost of this project, that $225,000 project, might be around $150,000 or $120,000. – That's exactly right. We see paybacks on a commercial project, typically, as good as
5, maybe 5 to 10 years is probably a really rough estimate. On a residential project,
you might see a 12 to even a 20 year payback, depending on different factors that go
into pricing your project.

– Yeah, that's a great point. But I think the big picture here is just to keep in mind that solar is a long-term investment. There's a better way to
pay for your electricity. You can either pay substantially less over a 30-year period now by paying it upfront
and investing in solar. – 2021 is a great year to go solar. You still get your federal tax credit. We are seeing electric rates
continuing to increase. It's a great way to hedge against future inflation
of your electric rates. 2021, it may just be the
year for you to go solar. – Hope you found this information helpful, and thanks for watching..

You May Also Like