Solar Panel Cost Guide in Salem, IN (Mar 2023)
- Salem Solar Installation Cost: $16,190
- 25-Year Savings: $23,331
- Payback Period: 10.2 Years
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Updated March 14, 2023
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Average Cost of Solar Panels in Salem
See how much it might cost to install solar panels in Salem.
In Salem, solar panels cost about 2.68 per watt on average. Because a 8.6-kW system is needed to cover the energy usage of a typical home in Salem, the average price of going solar will be about $16,190 after claiming the federal solar tax credit of 30%.
The true cost of your system can be above or below the average in Salem depending on a variety of factors, such as the brand of solar panels you choose and the solar installer you hire. Many homeowners find installing solar panels is a fruitful investment. The average homeowner in Salem can save around $17,000 on their electricity bills over 20 years.
Click the button below to get connected to a vetted solar installer in Salem for a personalized quote.
Solar savings over time in Salem
| Year | Return on Investment |
|---|---|
| 1 years | $-14,609 |
| 3 years | $-11,447 |
| 5 years | $-8,286 |
| 7 years | $-5,124 |
| 9 years | $-1,962 |
| 11 years | $1,199 |
| 13 years | $4,361 |
| 15 years | $7,523 |
| 17 years | $10,684 |
| 19 years | $13,846 |
| 21 years | $17,008 |
| 23 years | $20,169 |
| 25 years | $23,331 |
Top Solar Installers in Salem
Although it's possible to install solar panels on your own, it involves extra energy and expertise. Because of that, most homeowners choose a solar panel installer. The expertise that solar companies provide can be invaluable as well, especially if you don't quite know what brand of solar equipment you need.
Working with a vetted solar company can help you make the most of your investment in solar. Here are our recommendations:
Best Solar Financing
Blue Raven Solar
- Industry-leading in-house financing
- Competitive pricing
- Excellent reputation
- Doesn't offer solar batteries (coming 2022)
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
Even though the average cost of a solar system in Salem is $16,190, your actual cost may be above or below the average. There are quite a few factors that can have a major impact on the cost of a solar panel installation. Below are some of the more crucial things to take into consideration.
Solar Equipment
The cost of solar panels varies by thousands of dollars due to some different factors. One of the notable factors is the system size, which is measured in kilowatts (kW). Solar power systems that have better efficiency or power generation need better technology and/or more equipment, both of which can increase costs. For each additional kilowatt you need, your cost can go up by about $2,680. There are a lot of different solar panel brands and the one you choose also affects the cost. Generally speaking, the brands that have better efficiency tend to also be more expensive. Additionally, the type of equipment you're looking to get can affect your total cost. If you only need panels, your system will be far less expensive than if you also need solar batteries or an electric vehicle charger.
Solar Financing Terms
Solar panels can save you money on power bills over time, but they can also be a significant investment. That's why many Salem homeowners choose to finance their solar panel systems to offset upfront costs. You'll have to consider the long-term cost of loans, including the total interest you'll pay over the length of the loan. If you can only get a high-interest loan, then your total can be hundreds or even thousands of dollars more than the original cost. Making a larger down payment or getting a solar loan with a low interest rate could reduce your costs remarkably.
Solar Panel Installation Company
The solar company you select will impact your total cost to adopt solar power. Different companies will charge different amounts for the equipment and labor. 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 extra 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 | $2.79 | $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
The company that does your solar panel installation will affect the warranties and brands you have access to, and it will also have an impact on your total cost. Since picking a company can be a tough decision, we have some tips to help you, such as:
- Solar Panel Brands: Not all solar companies offer the same brands of solar panels, so the brand and type of panel you want can play a large role in the company you choose.
- Reputation: The North American Board of Certified Energy Practitioners (NABCEP) is a well-established certification organization for renewable energy professionals. If your solar panel installer is NABCEP-certified, it most likely has a solid reputation and is qualified to do the job well. Another way you can research your installer's reputation is by reading reviews.
- Contract: It's important to read through your solar installer's contract closely to understand what services they will provide, what the warranty covers and what you can expect about the installation process.
- Installation Process: When going solar, it's essential to keep an open line of communication with your solar panel company. Confirm that you understand how the installation process works and the project completion timeline.
Best Solar Financing
Blue Raven Solar
- Industry-leading in-house financing
- Competitive pricing
- Excellent reputation
- Doesn't offer solar batteries (coming 2022)
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
How much does it cost to install solar panels in Salem?
This is a hard question to answer exactly, because the cost depends on a few different factors. Broadly speaking, it costs about $13,400 for a 5-kW system and $26,800 for a 10-kW system after the ITC is applied. It will cost more if you want other solar equipment or more efficient panels, or if you have above-average energy needs. Conversely, you can spend less if you want a smaller solar panel system or less efficient solar panels.
Should I lease or buy solar panels in Salem?
Leasing solar panels can be an option if you can't afford to pay upfront or secure a solar loan, but since you don't own the system, you don't have access to many solar incentives. Also your property 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 solar panels eliminate my electricity bills?
Solar panels can potentially eliminate your electricity bills depending on your location and how much sunlight your home gets. Even if it doesn't get rid of them completely, you can save a lot of money on your bills, about $915.97 per year.
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 the amount of 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 get between 20 and 35 panels to account for 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.