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Solar Power Cost, Rebates & ROI

Overview

A typical home solar system (5 kilowatts) runs about $35,000. However, the range is quite wide- from $20,000 to $60,000- and depends on various factors. Solar tax credits and rebates greatly reduce the cost of solar and with some solar financing options, it is possible to have a positive cash flow from you solar system from the minute it's up and running.

Return on Investment- Something to Smile About

Solar systems can be a more expensive investment. However, your total return on investment can be as much as 14% or more in less than 10 years after you purchase your system. To find out your potential return on investment and solar payback period, use our solar estimate tool. Your report will include a custom solar cost and savings analysis.

Solar Cost Factors:


1. Solar Rebates and Tax Credits

Government rebates and tax credits reduce the upfront cost of solar systems significantly. Federal government regulations offer a 30% tax credit. Many state and local governments also offer additional tax credits, rebates and benefits. In some instances, local utility companies are also encouraging consumers to switch to solar energy with monetary incentives. Depending on where you live, these rebates and credits can lower the cost of your Leo Sunergy solar system by over 50%. (For more information about your state, visit Solar Rebates & Tax Credits.)

For example, if you live in Montgomery County, Maryland:

Retail price of 5kW system = $35,000

Less federal, state and local government rebates and tax credits = $20,250

Total out of pocket cost = $14,750

2. Solar System Size

System size is the single most important variable that determines the cost of the solar system. Size of the system depends upon your electricity requirements, available space to install it and your financial goals. As a rule, larger systems will be more expensive but reduce your electrical bill more significantly. Leo Sunergy engineers will custom design an optimum system for your family while keeping all factors in mind, including the available rebates and credits.

3. Solar System Quality

Brand and equipment quality also has an effect on the total cost of a solar system. Like everything else in life, some brands are more expensive than others. Equipment quality usually refers to solar panel efficiency. Less efficient panels are less expensive, but more are needed to get the same amount of power.

4. Labor Expenses

Labor costs may vary based on the architecture of your home, height and access to roof as well as the remoteness of your home's location.

Solar Cost Estimates

We've also listed a few detailed example estimates just to give you an idea about what you stand to earn by investing in solar.

Keep in mind the same rebates and tax credits available in these estimates may not be available in your area. Your estimate may vary a little or may be very different from these example estimates.

Choose Wisely

Not all solar installation companies are created equally. Make sure to check out Why Leo Sunergy to see why we're the best solar company. We guarantee the most competitive pricing, high quality workmanship, cutting-edge technology, NABCEP-certified installers and overall the best solar system for your money. We look forward to working with you.

We provide solar power installation in Maryland (MD), (including Baltimore, Frederick, Gaithersburg, Rockville,) Washington DC, Virginia (VA), Pennsylvania (PA), New Jersey (NJ) and Delaware (DE).