Solar Panel Cost Guide in Lima, MI (2023 Update)
- Lima Solar Installation Cost: $12,058
- 25-Year Savings: $15,204
- Payback Period: 11.1 Years
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Updated May 04, 2023
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Average Cost of Solar Panels in Lima
Let's have a look at the average cost of solar panels in Lima.
In Lima, solar panels cost about 2.81 per watt on average. Because a 6.1-kW system is needed to cover the energy needs of a typical home in Lima, the average price of going solar will be about $12,058 after claiming the federal solar tax credit of 30%.
These figures are just estimates, and the cost of going solar for you will look different based on your energy needs and what company you go with. For many homeowners, the upfront investment in solar panels is worth paying. On average homeowners in Lima see about $17,000 in savings on electricity bills over 20 years.
You can click the button below to get connected with a vetted solar company in Lima that can help you get a more accurate cost estimate for your home.
Solar savings over time in Lima
| Year | Return on Investment |
|---|---|
| 1 years | $-10,967 |
| 3 years | $-8,786 |
| 5 years | $-6,605 |
| 7 years | $-4,424 |
| 9 years | $-2,243 |
| 11 years | $-62 |
| 13 years | $2,119 |
| 15 years | $4,299 |
| 17 years | $6,480 |
| 19 years | $8,661 |
| 21 years | $10,842 |
| 23 years | $13,023 |
| 25 years | $15,204 |
Top Solar Installers in Lima
Trying to put up solar panels on your own can be a dangerous undertaking, which is why hiring a solar installer is a good option for many homeowners. Companies can also offer access to a large variety of the best solar panels and help you decide which one will be right for you.
Working with a professional solar installer can make going solar easier. Here are our recommendations:
Solar Veteran
Michigan Solar Solutions
- Great warranty coverage
- Outstanding customer service
- Offers products from leading manufacturers
- Slightly limited service offerings
- No leases or PPAs
Outstanding Local Installer
Strawberry Solar
- Outstanding customer service
- Representatives are experts on local policies
- Educational, no-pressure sales approach
- Limited warranty coverage
- No leases or PPAs
- Limited brands of solar equipment available
See all of the solar companies in Lima
Factors that Affect Solar Panel Costs in Lima
There are a number of factors that can determine your total installation cost, such as the size of your system, the equipment you choose, your financing options and the specific company that performs the installation.
Solar Equipment
When it comes to estimating the cost of a solar system in Lima, one of the most important factors is the size of the system you need. Solar systems are sized by kilowatts (kW) and are mainly based on your home's energy consumption, which you can determine by looking at past energy bills. Your overall cost can increase by about $2,810 for each additional kilowatt you need. The model of solar panels and equipment you want is another factor that will considerably affect costs. Solar panels that have higher efficiency, like monocrystalline panels, tend to come at a higher price. Plus, solar equipment goes beyond just the solar panels themselves. You'll also need to consider the kind of racks used to mount the panels, inverters, solar batteries, etc. It's important to take all of this into consideration when researching a solar system that falls within your budget.
Solar Financing Terms
If paying for a solar system in cash is too expensive, solar loans are a solid choice because they reduce your upfront costs and allow you to pay for your system over five to seven years on average. However, the interest on solar loans also adds to your all-in costs, so it's crucial to include that in your estimate as well. You can always bring down the total you pay in interest and sometimes even your APR by making a larger down payment.
Solar Panel Installation Company
Lastly, the company you choose to install your solar system can affect how much it costs. Lima's solar companies all have different labor costs and add varying upcharges to equipment. Larger national companies typically have lower costs, but some local companies compete with them by offering 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 | $2.92 | $12,274 | $14,413 | 11.5 years |
| 8 kW | $2.87 | $16,051 | $19,533 | 11.3 years |
| 10 kW | $2.81 | $19,670 | $24,809 | 11.1 years |
| 12 kW | $2.75 | $23,132 | $30,243 | 10.8 years |
| 14 kW | $2.70 | $26,436 | $35,834 | 10.6 years |
| 16 kW | $2.64 | $29,584 | $41,583 | 10.4 years |
| 18 kW | $2.59 | $32,574 | $47,489 | 10.2 years |
| 20 kW | $2.53 | $35,406 | $53,552 | 10.0 years |
How to Save on Solar Panels
Since the type of solar panels and the company you choose has an impact on your costs and your system's durability and efficiency, it's important to select the right ones for you. Here are some tips to keep in mind to help with your decision:
- Warranty: A quality company stands out from other companies by offering the gold standard warranty — a 25-year, all-inclusive warranty covering parts, labor and performance.
- Solar Panel Brands: Different companies will carry various brands and types of panels. If you know you want a specific brand, make sure the solar panel company you're considering has it.
- Contract: Though reading through a contract can take a lot of time, 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.
- Reputation: Your solar installer should have a solid reputation as a company and have demonstrated expertise in the field. A couple of ways to check this are to look for whether a company has technicians certified by the North American Board of Certified Energy Practitioners (NABCEP) and if it has good reviews from past customers.
Solar Veteran
Michigan Solar Solutions
- Great warranty coverage
- Outstanding customer service
- Offers products from leading manufacturers
- Slightly limited service offerings
- No leases or PPAs
Outstanding Local Installer
Strawberry Solar
- Outstanding customer service
- Representatives are experts on local policies
- Educational, no-pressure sales approach
- Limited warranty coverage
- No leases or PPAs
- Limited brands of solar equipment available
EcoWatch's Lima, MI Solar Cost FAQs
What is the average cost of installing solar panels in Lima?
The average cost of solar panels in Lima is about $14,050 for a 5-kW system and $28,100 for a 10-kW system before the ITC, but the actual cost will depend on certain factors such as 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 Lima?
Leasing solar panels can be an appealing 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 tax rebates and credits and your home value won't increase. Buying solar panels is a better option if you want to get the most savings.
Is switching to solar power worth it?
Whether or not solar panels are worth it depends on some different factors like local electricity rates and the amount of direct sunlight your roof gets.
How long do solar panels last in Lima?
On average, solar panels can last about 25 to 30 years. Some even last up to 50 years, but their efficiency goes down by about 0.8% each year. You can choose to replace them sooner if you want to maintain a higher level 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.