How Much Does a Solar Installation Process Cost?


In an era where sustainability and cost-effectiveness take center stage, embracing solar power has emerged as a compelling solution for homeowners. As per Consumer Affairs, opting for solar panels can reduce your energy bill by 75%, making it a profitable investment with significant long-term benefits. The advantages of solar panel installation create a win-win scenario for your finances and the planet.

Moreover, the Federal Tax credit offers a tempting incentive, providing a 30% tax credit on the cost of the solar panel installation process, making the choice more simple and assuring.

If you are also considering harnessing solar power for your home but are apprehensive about the installation costs, Look no further! This comprehensive guide will reveal practical strategies to save money on solar panel installation while reaping the numerous benefits of Solar Installation Process Cost For Home Roofs.

Solar Panel Installation Cost

As per the Center for Sustainable Energy, installing solar panels can range from $15,000 to $25,000 on average. This cost is often before tax incentives, or rebates are applied, which can help reduce the total expenses.

Solar panels create their electricity, which may significantly reduce, if not eliminate, your monthly electricity expenditure. The likelihood that you’ll save money through the solar panel installation process for your home roof increases with your monthly payment. Also, considering the impressive lifespan of solar panels, which is 25-30 years, it is a profitable investment.

Pro Tip: Click here for an estimate of solar panel roof installation cost.

What Are the Factors Affecting the Solar Installation Process Cost?

Size of the House

The size of your home and roof affects the cost of solar panel installation. Larger homes consume more electricity, and the solar panel system needs to be designed accordingly. On average, the cost of solar panels for a 2,500-square-foot home would be $28,750 before incentives and $20,125 after the 30% tax credit.

Energy Needs

The total cost of installing a solar energy system depends on how many panels you need, which is determined by your home’s energy requirements. It would be best to produce all the energy your home requires with the help of solar panels to do away with your electricity bill completely. Most American homes ultimately require 15 to 30 panels to fulfill electrical needs. According to Forbes Home, an average household consumes 599.78 kWh per month in New York and 673.24 kWh in New Jersey. This further affects the overall cost of solar panel installation.

Solar Equipment

The types of solar equipment and inverters you choose will often directly impact how much you pay for installation. The cost to establish a solar energy system increases with the efficiency of the system. According to Forbes Home, a 6 KW solar panel system costs $11,766 in New York. Similarly, a 6KW solar panel system in New Jersey costs $10,745 after a 26% federal tax credit is applied. Three types of solar panels are used, each significantly impacting the installation cost. These are the thin-film solar, polycrystalline, and monocrystalline versions. The panels for the most common household systems are made from monocrystalline or polycrystalline cells. A 6kW solar panel using thin-film solar panels or polycrystalline solar panels will cost between $4,500 and $6,600, and monocrystalline panels will cost between $6,000 and $9,000 in the U.S.A. 

Quality Of Solar Panels 

Durability, efficiency, and Warranty are three factors that should be addressed when considering the solar panel installation process. The durability of Solar panels is important for them to survive adverse weather conditions and temperatures.

Higher-efficiency solar panels convert more sunlight into energy (efficiency rating of more than 18%). Typically, a solar panel has a warranty of 10- 25 years. A lengthier warranty demonstrates faith in the performance of the solar panels. These factors majorly affect the quality of the solar panels, hence the cost of the solar installation process.

Interconnection Cost

Interconnection Costs incur on connecting the solar panels to the power grid. These costs depends on and varies from place to place. If you want to connect your solar energy system to the grid, the work and permission may cost extra. A system must be built for interconnection, and a site visit must be planned before installing the solar panels. This leads to additional labor costs as well. 

According to Forbes Home, solar panel installation typically costs between $0.90 and $1.50 per watt, plus an extra 25% for labor. This implies that your overall cost per watt will be between $1.10 and $1.90.

Cost for License

For the solar panel installation process, various locations follow varied laws. In this case, the contractor could charge you additional license fees associated with the regulatory procedure. As a result, the price of the solar installation process will increase. According to Consumer Affairs, In Colorado, the limit for license cost is set at $500 for residential projects and $1,000 for commercial projects. On the other hand, California has a cap of $450 for residential projects. 

Installing Trackers

Some trackers are installed so that the house owner can check on the solar energy system’s performance of the solar panels. These tracking and monitoring systems are excellent. However, the additional expense of the tracking system may increase the installation’s overall cost. These trackers increase the solar panels’ output. Before deciding to use the equipment, weigh its costs and advantages. Tracking equipment can cost anywhere from $500 per panel to over $1,000 per panel.

Tax Incentives

Federal and State incentives can significantly help save money on the solar panel installation process. The federal investment tax credit (ITC) covers 30% of the entire cost of a new solar PV system. There are certain restrictions, but homeowners, companies, and NGOs are all eligible. 

Pro Tip: Know more about tax credits and incentives in New York, New Jersey or Connecticut.

Roof Type and Angle

Solar panels absorb the maximum sunlight when positioned at an angle of 30-45 degrees.  

If the roof is not slanted but flat, installation and overhead costs will increase since the contractor must build scaffolding to angle the panels. In such a situation, the roofing company may charge extra for some particular types of roofing material since they need more labor and incur additional expenses.

Roof Age and Condition

It makes sense to replace your roof before the solar installation process if it is old, especially for over 12 years, and needs structural adjustment and replacement. Repairing or rebuilding the roof before installing solar panels is recommended but also increases installation costs.

Weather Conditions

It’s essential to consider the environment in which your solar panels are located. The number of panels required and their position varies depending on how much shade your roof receives. Locations with clouds or snow require more panels to produce the same energy. This affects the overall cost of the solar panel installation process. Solar energy systems in full sun can produce more energy with fewer panels.

Pro tip: Find more information on going solar here!


The Solar Panel Installation cost can go up or down depending on various factors, as mentioned in this article. The solar panel installation cost is a major investment but also saves you money in the long run. The lifespan of solar panels is 25 to 30 years, which helps save money on your energy bill for many years.

Feel free to contact Infinity Energy for a solar installation process by a professional residential solar company. Click here if you are looking for a residential solar company in New Jersey, New York or Connecticut.