Solar Panel Cost Guide in Lexington Fayette, KY (2023 Update)
- Lexington Fayette Solar Installation Cost: $15,839
- 25-Year Savings: $22,914
- Payback Period: 10.2 Years
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Updated May 04, 2023
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Average Cost of Solar Panels in Lexington Fayette
Find out what the average cost of solar panels are in Lexington Fayette.
Currently, the national average cost of solar panels is $2.66 per watt. However, in Lexington Fayette, the typical cost of a solar system is 2.34 per watt. The average Lexington Fayette homeowner needs a 9.7-kilowatt system, which would cost about $15,839 with the federal tax credit, or $22,650 before the 30% tax credit is applied.
Keep in mind that the figures above are only estimates based on the average Lexington Fayette homeowner. The price of a solar system for your home may be different depending on factors unique to your situation, like your household energy use and solar contractor. With typical savings of about $15,000 on power bills over 20 years, many homeowners in Lexington Fayette find investing in solar can pay off big.
To see your potential savings and connect with a local solar installer, click the button below.
Solar savings over time in Lexington Fayette
| Year | Return on Investment |
|---|---|
| 1 years | $-14,289 |
| 3 years | $-11,189 |
| 5 years | $-8,089 |
| 7 years | $-4,988 |
| 9 years | $-1,888 |
| 11 years | $1,212 |
| 13 years | $4,312 |
| 15 years | $7,413 |
| 17 years | $10,513 |
| 19 years | $13,613 |
| 21 years | $16,713 |
| 23 years | $19,814 |
| 25 years | $22,914 |
Top Solar Installers in Lexington Fayette
When going solar, many homeowners prefer to hire a solar company since handling can be a difficult project. Some solar installers, particularly local ones, can help you take advantage of incentives in Lexington Fayette, thereby optimizing your ROI.
If you'd like to start using solar energy but still aren't certain which solar system company to go with, here are our recommendations for providers in Lexington Fayette:
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 Lexington Fayette
Factors that Affect Solar Panel Costs in Lexington Fayette
While the average cost of a solar system in Lexington Fayette is $15,839, your actual cost may be higher or lower than that. There are several factors that can have a sizable impact on the cost of a solar panel installation. Below are some of the more crucial things to keep in mind.
Solar Equipment
When it comes to estimating the cost of solar panels in Lexington Fayette, one of the most crucial 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 usage, which you can gauge by looking at past power bills. Your total cost can increase by about $2,340 for each additional kilowatt you need. The brand and kind of equipment you want for your solar system can raise or lower the price quite significantly. If you prefer a brand name like Tesla or SunPower, these are often more expensive 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 more savings over time. Also, if you want extra equipment like an electric vehicle charger or solar batteries, this will also raise the cost.
Solar Financing Terms
Most solar companies in Lexington Fayette have solar loans, which reduce the initial cost of installing a solar system. You'll have to consider the long-term cost of financing options, including the total interest you'll pay over the length of the loan. If you're only able to get a high-interest loan, then your total can be hundreds or even thousands of dollars above the equipment and labor cost. Making a larger down payment or getting a solar loan with a low APR could reduce your costs significantly.
Solar Panel Installation Company
Finally, the company you get to install your solar panel system can influence how much you pay. Lexington Fayette's solar companies all have different labor costs and add varying upcharges to equipment. You may notice national solar installers that have lower prices due to their bigger brand name and access to bulk pricing, or you might see small, local installation companies offering deals or specials to compete with those larger companies.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $2.43 | $10,221 | $13,815 | 10.6 years |
| 8 kW | $2.39 | $13,366 | $18,682 | 10.4 years |
| 10 kW | $2.34 | $16,380 | $23,680 | 10.2 years |
| 12 kW | $2.29 | $19,263 | $28,809 | 10.0 years |
| 14 kW | $2.25 | $22,015 | $34,069 | 9.8 years |
| 16 kW | $2.20 | $24,636 | $39,461 | 9.6 years |
| 18 kW | $2.15 | $27,125 | $44,983 | 9.4 years |
| 20 kW | $2.11 | $29,484 | $50,636 | 9.2 years |
How to Save on Solar Panels
Since the type of solar panels and the company you choose greatly impacts your costs and your system's durability and efficiency, it's important to select the right ones for you. Here are some things to keep in mind to help with your decision:
- 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 good reputation and is qualified to do the job well. Another way you can look into your installer's reputation is by reading reviews.
- Solar Panel Brands: Each solar panel brand and kind offers varying levels of quality, durability and energy efficiency. They will come at different prices as well. The company you choose has an impact on which solar panel brands you have access to.
- Contract: Although reading through a contract can be tedious, it's important to do it carefully so you can make sure you understand what services your solar company will provide and how part repairs and replacements will be handled.
- Warranty: An all-inclusive, long-term warranty can help keep your solar panel system running smoothly and save you money on part replacement and repairs.
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 Lexington Fayette, KY Solar Cost FAQs
How much does it cost to install solar panels in Lexington Fayette?
The average cost of solar panels in Lexington Fayette is about $11,700 for a 5-kW system and $23,400 for a 10-kW system before the ITC, but the actual cost will depend on stuff such as the type of solar panels you want, what size system you need and how much energy you use.
What other factors should I consider aside from cost when buying solar panels?
The initial cost is a key factor to consider, but whether it's the most important for you depends on your reasons for going solar. In cities where rooftop space is limited, efficiency can be more important than the cost. Other factors that are important to be mindful of are the quality and durability of your solar panels.
Do solar panels increase your home value?
Installing solar panels on your home can increase the value of your property by about 4%, according to research done by Zillow. The average home value in Lexington Fayette is currently $195,756, so you can look forward to a value of about $8,026 more than houses without a solar system. The specific figures will vary, but most experts agree that installing solar panels in Lexington Fayette 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.