If you want to be more energy independent and switch to renewable energy, you may be considering getting solar panels installed. One of the first questions to ask, though, is how much solar panels will cost, specifically.
Solar energy has become more accessible and a more viable option thanks to increasing research on renewable sources of energy. Anyone can switch to solar energy now and gain numerous benefits.
That is why it is time you consider switching over to solar energy. In this article, we will give you an idea of the cost of solar panels in Michigan.
Considering Solar Panel Types
Solar panel installation costs in Michigan and nationwide can vary greatly. The cost of solar will depend on the type of solar panel that is chosen. There are three main types of solar panels:
Typically, monocrystalline panels are more expensive and deliver the highest efficiency, followed by polycrystalline panels, which are the most common, and then thinner films which have the lowest efficiency and produce the least energy but have the lowest cost. Monocrystalline panels cost an average of $1 to $1.50 per watt, polycrystalline panels between $0.90 to $1 per watt, and thin-film panels between $0.50 and $1 per watt.
Factoring In System Size
Systems of various sizes are available, from small residential setups to large commercial installations that can generate power for an entire community. The size of the system chosen will affect the total cost of the solar panel installation.
This is because larger systems require more solar panels and may also require additional installation or wiring components. On average, the cost of installing a solar panel would cost $20,650.
Finding Out Installation Costs
The cost of labor involved in the installation of solar panels can vary greatly depending on:
- the number of panels installed
- the complexity of the installation
- the location of the installation
Generally, the more complex the installation and the more panels being installed, the higher the cost of labor. Additionally, the cost of labor will be significantly lower in more rural areas where installation crews are less in demand.
In most cases, the cost of labor will usually make up the majority of the total installation cost. Thus, it is important to research the quality of work of any installers before making a decision, as the lower cost may reflect inexperienced labor with sub-par results.
Taking all of this into account, it is possible to find an experienced installer with reasonable labor rates, enabling the most cost-effective installation of solar panels possible. To give you an average labor cost, you’ll expect to pay $0.59 per Watt.
Considering Federal Solar Investment Tax Credit
Solar panel installation costs in Michigan can be significantly reduced when considering the Federal Solar Investment Tax Credit (ITC). This tax credit effectively reduces the cost of installing solar power systems by providing 30% of the cost of the system as a tax credit.
The up-front investment payments for a solar system can be much more manageable. The ITC is a great incentive to consider when analyzing the potential benefits of solar energy for Michigan residents. Furthermore, the panel systems typically last 20 to 30 years, making them a great long-term investment – and when combined with the ITC, it is an even more attractive proposition.
Finding Out Some State and Local Incentives
One of the most important factors to consider when looking into solar panel installation costs in Michigan is the availability of state and local incentives. Some local utility companies may offer high solar incentive payments for excess solar energy produced and fed back into the grid.
Solar panel installation costs in Michigan can vary widely. However, the good news is that the state of Michigan and local governments provide incentives that can help make the installation more affordable. For instance, Michigan homeowners may be eligible for up to a $500 per kW rebate. This of which can amount to around $2000 off of the total cost of purchase and installation.
In addition, utility companies may provide additional installation:
By researching and applying for these incentives, Michigan homeowners can potentially reduce the cost of solar panel installation and take advantage of the savings for years to come.
Considering Financing Options
For many, financing options such as loans and payment plans can make the cost of installation more manageable. However, it is worth asking if financing options have an effect on the solar panel installation cost or the available rebates for installation in Michigan.
It is important to note that financing may just add on additional interest rates associated with the loan. On average, the average rate for solar loans could be between 4.44% to 8% for 15 years to 20 years loan terms.
However, it may not decrease the cost, or the available rebate, for installation. It is important to weigh all of the options when considering the cost of solar panel installation in Michigan and if financing could add up to a more expensive investment in the long term.
Comparing Commercial and Residential Solar Panels
The cost of installing solar panel systems in Michigan heavily depends on whether the needs are for residential or commercial purposes. Residential installation costs are quite reasonable when considering the payback period and long-term savings. To get a better view of how much it would cost, you might want to get information here.
Commercial solar panel installation cost is typically more expensive, but the savings may be larger due to the greater amount of energy consumed. Prices can be offset by federal, state, and commercial incentives, however, making solar a more attractive investment option.
Research On the Cost of Solar Panels in Michigan in 2023
Overall, the cost of solar panels in Michigan in 2023 appears to be quite reasonable, considering their numerous benefits. The resources provided here should give you a good idea of the estimated cost.
Consider that investing in solar can help you save money in the long run by cutting down monthly utility bills and earning tax incentives while showing care for the environment. Invest in green energy today and reap the benefits tomorrow.
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