Solar Panel Cost Guide in Morgan Hill, CA (2023 Update)
- Morgan Hill Solar Installation Cost: $5,703
- 25-Year Savings: $20,628
- Payback Period: 5.4 Years
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Updated September 15, 2023
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Average Cost of Solar Panels in Morgan Hill
Let's have a look at the average cost of solar panels in Morgan Hill.
Currently, the national average cost of solar panels is $2.66 per watt. However, in Morgan Hill, the average cost of a solar system is 2.73 per watt. Using this figure, a typical 3.0-kW system would cost about $5,695 before the 30% federal solar tax credit is applied.
The prices above are just estimates to give you an idea of how much solar panels could cost. The exact cost of installing solar panels can vary quite a bit depending on several factors, such as how many panels you need, your energy consumption and what solar installer you go with. For most homeowners, the upfront cost of solar power is worth paying. On average Morgan Hill homeowners see about $34,000 in savings on utility bills over 20 years.
For a personalized quote from a local solar installer that has been pre-vetted by EcoWatch, click the button below.
Solar savings over time in Morgan Hill
| Year | Return on Investment |
|---|---|
| 1 years | $-5,615 |
| 3 years | $-5,440 |
| 5 years | $-5,264 |
| 7 years | $-5,088 |
| 9 years | $-4,913 |
| 11 years | $-4,737 |
| 13 years | $-4,562 |
| 15 years | $-4,386 |
| 17 years | $-4,211 |
| 19 years | $-4,035 |
| 21 years | $-3,860 |
| 23 years | $-3,684 |
| 25 years | $-3,509 |
Top Solar Installers in Morgan Hill
When switching to solar energy, many homeowners prefer to use a solar installation company since installing a solar system yourself can be a challenging project. Local solar installers can also help you maximize your return on investment by walking you through any local incentives and by offering warranties and repairs.
There are various licensed solar professionals that can install solar panels for you. Here are our suggestions:
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 Morgan Hill
Factors that Affect Solar Panel Costs in Morgan Hill
There are several factors that can determine your installation cost, such as the size of your system, the equipment you choose, your financing options and the specific company that installs your solar panels.
Solar Equipment
When it comes to estimating the cost of a solar panel system in Morgan Hill, one of the most important factors is the size of the system you need. Solar systems are sized by kilowatts (kW) and are largely based on your home's energy consumption, which you can determine by looking at past electricity bills. Your total cost can increase by around $2,730 for each additional kilowatt you need. The brand of solar panels and equipment you get is another factor that will significantly influence costs. Solar panels that are more efficient, like monocrystalline panels, tend to come at a higher price. Furthermore, solar equipment goes beyond just the solar panels themselves. You'll also need to think about the kind of racks used to mount the panels, inverters, solar batteries, etc. It's important to take all of this into consideration when looking for a solar system that falls within your budget.
Solar Financing Terms
Most solar installers in Morgan Hill provide solar loans, which reduce your upfront costs of installing solar panels. However, the interest on solar loans also adds to your total costs, so it's vital to keep that in mind as well. You can always bring down the total you pay in interest and in some cases even your APR by putting more money down.
Solar Panel Installation Company
Finally, the company you hire to install your solar panel system can impact how much it costs. Morgan Hill's solar companies all have different labor costs and add varying upcharges to equipment. The size of the company sometimes plays the most considerable role in the cost of installation. Larger national companies, like SunPro and Sunrun, often have lower pricing because of more resources and bulk pricing. Smaller local companies might be more costly, but they can sometimes have better customer service and more customization options, and the occasional sale or discount can bring their pricing lower to compete with bigger names.
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 | $41,015 | 5.6 years |
| 8 kW | $2.78 | $15,594 | $54,993 | 5.5 years |
| 10 kW | $2.73 | $19,110 | $69,123 | 5.4 years |
| 12 kW | $2.68 | $22,473 | $83,407 | 5.3 years |
| 14 kW | $2.62 | $25,684 | $97,843 | 5.2 years |
| 16 kW | $2.57 | $28,741 | $112,432 | 5.1 years |
| 18 kW | $2.51 | $31,646 | $127,174 | 5.0 years |
| 20 kW | $2.46 | $34,398 | $142,069 | 4.9 years |
How to Save on Solar Panels
The company that does your solar panel installation will affect the warranties and brands available to you, and it will also have an impact on your total cost. Since selecting a company can be a challenge, we have some tips to help you, such as:
- Reputation: Solar installers that have great reviews from their customers and that have been operating for many years most likely offer quality solar panel installation and expertise.
- Solar Panel Brands: Homeowners will have different preferences for panels based on their roof configurations and energy needs. While there are many options for which type of solar panel you can get, not every company will have the exact one you may want or need, so be sure to ask for their list of options before making your decision.
- Warranty: If you care about the durability of your solar energy system, ensuring your company offers a 25-year, all-inclusive warranty can give you some peace of mind.
- Contract: It's important to look over your solar installer's contract thoroughly to understand what services they will provide, what the warranty covers and what you can expect about the installation process.
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 Morgan Hill, CA Solar Cost FAQs
How much does it cost to install solar panels in Morgan Hill?
The average cost of solar panels in Morgan Hill is about $13,650 for a 5-kW system and $27,300 for a 10-kW system before the ITC, but the actual cost will depend on stuff like the type of solar panels you want, what size system you need and how much energy you use.
Is it better to lease or buy solar panels in Morgan Hill?
Leasing solar panels can be an attractive choice, as it typically comes with low or $0 upfront payments. The downside is that you won't be able to save as much. If you lease, you don't own the system, so you can't claim any incentives and your home value won't increase. Buying solar panels is a better way to go if you want to get the most savings.
Is switching to solar power worth it?
Solar panels can be a beneficial investment for most homeowners, but they might not be worth it for everyone. If your home doesn't get a lot of direct sunlight and/or your energy bills are already fairly low, solar panels might not be for you.
What solar power system size is right for my home?
The exact number of solar panels you need depends on your household energy consumption and how much sunlight your roof gets. You can look at your energy bills for the past year to get an idea of the solar system size you'll need. The average household has to buy between 20 and 35 panels to cover their typical energy usage.
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.