United States

How much does solar cost?

John Joshi Friday, 09 March 2012

In this article, John Joshi looks at the cost structure of solar nationally. He presents some charts, that were prepared by One Block Of The Grid, showing the variability of Solar Cost as well the savings over time and breakeven cost.

How much does solar cost?

Solar cost depends on various factors and can cost before rebates for a typical residential system between $10k and $20k.  Rebates, incentives, federal, state and local incentives bring the out of pocket expense down considerably and in some states the system payback is only a few years. We’ve written about solar leases and PPA in previous articles and that option allows homeowners and business to go solar for little or no money down.



With a short payback period and the opportunity to save money and reduce the variability of energy costs, solar is a great option for homeowners.  With a solar lease a homeowner can save on average 10%-30% annually.  Save money, reduce future energy costs and help the planet – it’s the best of both worlds.

[Editor’s Note: John Joshi is a managing director at CapitalFusion Partners LLC, an advisory firm focused on renewable energy and infrastructure projects. He also runs the Carbon Finance & Securitization group on LinkedIn. Mr. Joshi can be reached at: jjoshi@capitalfusionpartners.com.]

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Do you envisage more installations of DIY solar panels systems in home making significant contributions to overall renewables in the future?