Solar Panel Cost Guide in Merced, CA (2023 Update)
- Merced Solar Installation Cost: $5,662
- 25-Year Savings: $19,706
- Payback Period: 5.6 Years
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Updated September 15, 2023
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Average Cost of Solar Panels in Merced
See how much it might cost to go solar in Merced.
Although the national average of solar panels is $2.66 per watt, solar panels in Merced generally cost about 2.73. Since a 3.0-kW system is needed to cover the energy usage of a typical home in Merced, the average price of going solar will be about $5,657 after claiming the federal solar tax credit of 30%.
These figures are just averages, and the cost of going solar for you will look different based on your energy needs and what company you choose to go with. With typical savings of about $33,000 on utility bills over 20 years, many homeowners in Merced find investing in solar has a decent ROI.
Click the button below to get connected to a top solar installer in Merced for a customized quote.
Solar savings over time in Merced
| Year | Return on Investment |
|---|---|
| 1 years | $-5,578 |
| 3 years | $-5,409 |
| 5 years | $-5,240 |
| 7 years | $-5,070 |
| 9 years | $-4,901 |
| 11 years | $-4,732 |
| 13 years | $-4,563 |
| 15 years | $-4,394 |
| 17 years | $-4,225 |
| 19 years | $-4,056 |
| 21 years | $-3,887 |
| 23 years | $-3,717 |
| 25 years | $-3,548 |
Top Solar Installers in Merced
Trying to install solar panels yourself can be a stressful task, which is why using a solar installation company is a good option for many homeowners. Plus, if you're not certain what brand of solar panels and equipment you need, a solar company can help you figure that out after a site survey and consultation.
If you're searching for a solar installer in Merced, we've organized a list of our top suggestions here:
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
See all of the solar companies in Merced
Factors that Affect Solar Panel Costs in Merced
The cost of installing a solar system in Merced can vary by more than $10,000 from home to home. Your actual cost depends on several factors. The most significant one is the size of the system your home needs, and other factors include equipment choices, financing options and the solar company you choose.
Solar Equipment
System size, which is measured in kilowatts, is one of the largest factors that influences the overall cost of installing solar panels. Because of that, it's crucial to accurately gauge the size of the solar energy system needed for your home by figuring out your average energy use. There are many different solar panel brands and the one you pick also affects the cost. In general, the brands that have better efficiency tend to also be more expensive. Additionally, the type of equipment you choose can affect your total cost. If you just need panels, your system will be far less expensive than if you also need solar batteries or an electric vehicle charger.
Solar Financing Terms
If paying for solar panels in cash is out of reach, solar loans are a solid choice because they decrease your upfront costs and let you pay for your system over five to seven years on average. Although solar loans make going solar more accessible for Merced homeowners, they can also increase the total you pay for your system, depending on your interest rate and how long you take to pay off the loan. If you make a larger down payment, though, you can cut back on how much interest you have to pay.
Solar Panel Installation Company
A final consideration when trying to estimate the cost of solar for your home or business in Merced is the company you hire to install your solar panel system. Similar to choosing a company to install new cabinets, for example, you'll have no shortage of solar installers that offer a range of services for different budgets. Larger national companies typically have lower costs, but some local companies compete with them by promoting sales and discounts. While the smaller companies might not have specific equipment options like Tesla Powerwall batteries or add-on services like electric vehicle charger installation, they might be cheaper overall.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $2.84 | $11,925 | $39,444 | 5.8 years |
| 8 kW | $2.78 | $15,594 | $52,898 | 5.7 years |
| 10 kW | $2.73 | $19,110 | $66,505 | 5.6 years |
| 12 kW | $2.68 | $22,473 | $80,264 | 5.5 years |
| 14 kW | $2.62 | $25,684 | $94,176 | 5.4 years |
| 16 kW | $2.57 | $28,741 | $108,242 | 5.2 years |
| 18 kW | $2.51 | $31,646 | $122,460 | 5.1 years |
| 20 kW | $2.46 | $34,398 | $136,831 | 5.0 years |
How to Save on Solar Panels
There are many companies available in Merced, and some homeowners feel overwhelmed considering their options. Choosing the right company for you can be challenging, so here are some tips to help you decide:
- Reputation: Companies that have been operating for many years likely have a good reputation. This is important because it ensures that it will not only see your solar installation through, but will also provide adequate aftercare and customer service, such as part repairs and replacements.
- Warranty: A quality company rises above other companies by providing the gold standard warranty — a 25-year, all-inclusive warranty covering parts, labor and performance.
- Solar Panel Brands: The brand of solar panel you'd like to get plays a part in which company you should go with, since different companies have access to different panels.
- Contract: Review the contract terms closely to make sure you understand the cost breakdown, project completion timeline rebates and warranties.
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
EcoWatch's Merced, CA Solar Cost FAQs
What is the average cost of installing solar panels in Merced?
This is a hard question to answer precisely, because the cost depends on a few different factors. Broadly speaking, it costs about $13,650 for a 5-kW system and $27,300 for a 10-kW system after the ITC is applied. It will cost more if you want additional solar equipment or more efficient panels, or if you have above-average energy consumption. Conversely, you can spend less if you want a smaller solar panel system or less efficient solar panels.
Is it better to lease or buy solar panels in Merced?
Leasing solar panels can be an option if you are unable to pay upfront or secure a solar loan, but since you don't own the system, you can't take advantage of many solar incentives. Also your home value won't increase, so you'll have less savings over time. If you can afford to buy a solar system upfront, then buying is the better option if you want the most bang for your buck from going solar.
Can you sell solar power back to the grid in Merced?
The majority of states have net metering programs of some kind. Through these, you can get paid for the extra power your system generates or or receive credits to put toward future energy bills. Currently there are just three states that don't have any net metering laws: Alabama, Tennessee and South Dakota.
How often do you have to replace solar panels?
On average, solar panels can last about 25 to 30 years. Some even last up to 50 years, but their efficiency decreases by about 0.8% each year. You can choose to replace them sooner if you want to maintain a higher amount of energy production.
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.
Company research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.