Solar Panel Cost Guide in Salem, IN (2023 Update)
- Salem Solar Installation Cost: $16,188
- 25-Year Savings: $23,333
- Payback Period: 10.2 Years
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Updated September 15, 2023
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Average Cost of Solar Panels in Salem
We go over average solar pricing in Salem.
In Salem, solar panels cost about 2.68 per watt on average. The average Salem homeowner needs a 8.6-kilowatt system, which would cost about $16,190 with the federal tax credit, or $23,152 before the 30% tax credit is applied.
The prices above are just estimates to give you an idea of the cost of a solar panel system. The true cost of going solar can vary depending on multiple factors, such as how many panels you need, your energy consumption and what solar installer you go with. For many homeowners, the upfront cost of solar panels is worth paying. On average homeowners in Salem see about $17,000 in savings on utility bills over 20 years.
To calculate your potential ROI and connect with a local solar installer, click the button below.
Solar savings over time in Salem
| Year | Return on Investment |
|---|---|
| 1 years | $-16,057 |
| 3 years | $-15,793 |
| 5 years | $-15,530 |
| 7 years | $-15,266 |
| 9 years | $-15,003 |
| 11 years | $-14,739 |
| 13 years | $-14,476 |
| 15 years | $-14,212 |
| 17 years | $-13,949 |
| 19 years | $-13,685 |
| 21 years | $-13,422 |
| 23 years | $-13,158 |
| 25 years | $-12,895 |
Top Solar Installers in Salem
When switching to solar energy, many homeowners prefer to go with a solar installer since overseeing your solar installation yourself can be a difficult project. The expertise that solar companies offer can be helpful as well, particularly if you aren't sure what brand of solar equipment would be right for your home.
If you'd like to start using solar energy but still aren't certain which solar company to go with, here are our suggestions for providers nearby:
Best Solar Financing
Blue Raven Solar
- Industry-leading in-house financing
- Competitive pricing
- Excellent reputation
- Doesn't offer solar batteries
Best Technology
Tesla Energy
- Price-match guarantee
- Sleek, efficient, and durable solar panels
- Best solar battery on the market
- Some reported issues with customer service
- Customer service varies by local dealer
See all of the solar companies in Salem
Factors that Affect Solar Panel Costs in Salem
For many Salem homeowners, the decision to install a solar energy system comes down to cost. However, the range of solar installation costs can be quite wide in Salem, with typical prices between $20,000 to $40,000. There are a few factors that greatly influence the price you'll pay, which we'll go over below.
Solar Equipment
When it comes to estimating the cost of a solar panel system in Salem, one of the most important factors is the size of the system you need. Solar systems are sized by kilowatts (kW) and are primarily based on your home's energy usage, which you can figure out by looking at past power bills. Your total cost can increase by around $2,680 for each additional kilowatt you need. The brand and type of equipment you want for your solar system can raise or lower the price quite significantly. If you prefer a trusted brand name like Tesla or SunPower, these often come at a higher price than other brands. Efficiency also matters. Whether you're opting for high efficiency because you have limited roof space or just want maximum energy production, you will be looking at a higher equipment cost, but this can typically lead to greater savings over time. Plus, if you want additional equipment like an electric vehicle charger or solar batteries, this will also raise the cost.
Solar Financing Terms
For some homeowners, paying for a solar system out of pocket can be challenging. Solar loans are offered by most installers in Salem, which can lower, or in some cases eliminate, your upfront costs to make solar more affordable. It's a good idea to add the interest you'll pay in your final cost estimate. If you can afford to pay a larger down payment, you can reduce your total costs and how long it'll take to pay back the loan.
Solar Panel Installation Company
The solar company you choose to handle your switch to renewable energy can play a part in your total costs. There are about 3 solar installation companies in Salem, and each can charge different amounts for labor and 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 prices because they have greater resources and better 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 promotion can bring their pricing down to compete with bigger companies.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $2.79 | $11,706 | $15,773 | 10.7 years |
| 8 kW | $2.73 | $15,308 | $21,331 | 10.4 years |
| 10 kW | $2.68 | $18,760 | $27,039 | 10.2 years |
| 12 kW | $2.63 | $22,062 | $32,897 | 10.0 years |
| 14 kW | $2.57 | $25,213 | $38,905 | 9.8 years |
| 16 kW | $2.52 | $28,215 | $45,063 | 9.6 years |
| 18 kW | $2.47 | $31,067 | $51,371 | 9.4 years |
| 20 kW | $2.41 | $33,768 | $57,829 | 9.2 years |
How to Save on Solar Panels
There are a lot of companies to choose from in Salem, and some homeowners feel overwhelmed considering their options. Picking the right company for you can be tough, so here are some tips to help you decide:
- Installation Process: An important thing to understand when going solar is the installation process itself. Be sure to align on any details you need to know with your solar installer, such as what permits you should acquire and how long the project will take.
- Solar Panel Brands: Homeowners will have different preferences for panels based on their locations and how much efficiency they need. Even though there are many options for which kind of solar panel you can get, not every company will have access to the exact one you may want or need, so be sure to ask for their list of offerings before making your decision.
- Contract: It's important to read through your solar installer's contract well to understand what services they will provide, what the warranty covers and what expectations you should have about the cost.
- Reputation: Solar panel companies that have great reviews from their customers and that have been in business for many years most likely provide good-quality solar panel installation and expertise.
Best Solar Financing
Blue Raven Solar
- Industry-leading in-house financing
- Competitive pricing
- Excellent reputation
- Doesn't offer solar batteries
Best Technology
Tesla Energy
- Price-match guarantee
- Sleek, efficient, and durable solar panels
- Best solar battery on the market
- Some reported issues with customer service
- Customer service varies by local dealer
EcoWatch's Salem, IN Solar Cost FAQs
What is the average cost of installing solar panels in Salem?
The average cost of solar panels in Salem is about $13,400 for a 5-kW system and $26,800 for a 10-kW system before the ITC, but the actual cost will depend on certain factors like the model 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 Salem?
Leasing solar panels can be an attractive choice, because it commonly comes with low or $0 upfront payments. The drawback 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 option if you want to maximize your savings.
Do solar panels increase the value of your home?
Solar panels can increase the value of your property by about 4%, according to research done by Zillow. The average home value in Salem is currently $112,200, so you can look forward to a value of about $4,600 more than houses without a solar system. The exact figures will vary, but most experts agree that installing solar panels in Salem is a worthwhile investment.
What solar power system size is right for my home?
To figure out how many solar panels you need, you should find out how much energy your home uses and how much sunlight your home gets. For a general estimate, however, since each panel can generally produce about 250 to 400 watt-hours per hour, the average household will need 20 to 35 panels.
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.