Solar Panel Cost Guide in Madison, MI (2023 Update)
- Madison Solar Installation Cost: $11,999
- 25-Year Savings: $23,023
- Payback Period: 8.6 Years
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Updated September 15, 2023
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Average Cost of Solar Panels in Madison
Let's take a look at the average cost of solar panels in Madison.
The national average cost of solar panels is $2.66 per watt, but in Madison it's 2.81 per watt. The average Madison homeowner needs a 6.1-kilowatt system, which would cost about $11,999 with the federal tax credit, or $17,159 before the 30% tax credit is applied.
Keep in mind that the figures above are only estimates based on the average Madison homeowner. The cost of a solar system for your home may look different depending on factors unique to your situation, like your household energy use and solar contractor. But, once you've paid the upfront cost of installation, the return on investment for most homeowners is quite fruitful, with a net average savings of about $22,000 over 20 years on power bills.
You can click the button below to get connected with a pre-vetted solar company in Madison for a quote for your home.
Solar savings over time in Madison
| Year | Return on Investment |
|---|---|
| 1 years | $-10,745 |
| 3 years | $-8,238 |
| 5 years | $-5,730 |
| 7 years | $-3,223 |
| 9 years | $-716 |
| 11 years | $1,792 |
| 13 years | $4,299 |
| 15 years | $6,806 |
| 17 years | $9,314 |
| 19 years | $11,821 |
| 21 years | $14,329 |
| 23 years | $16,836 |
| 25 years | $19,343 |
Top Solar Installers in Madison
Installing solar panels yourself can be a challenging task, which is why using a solar installer is a good option for many homeowners. Solar warranties and repairs are usually included in the cost of installation when you hire a solar contractor as well, which can save you more money over time.
There are various licensed solar professionals that can take care of your solar installation project. Here are our suggestions:
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 Madison
Factors that Affect Solar Panel Costs in Madison
For many Madison homeowners, the decision to install a solar energy system depends on cost. However, the range of solar installation costs can be quite wide in Madison, with typical prices between $20,000 to $40,000. There are numerous factors that considerably influence the price you'll pay, which we'll go over below.
Solar Equipment
The size of the solar panel system you need, which is measured in kilowatts, is the most important cost factor to consider. For every additional kilowatt you need, your total will most likely increase by about $2,810. Some solar panel brands — like Maxeon from SunPower — cost more upfront but also tend to offer higher efficiency. In a city like Madison, where sunlight isn't as abundant, efficiency can quickly pay off. Also, if you have a small roof or you don't have a lot of space for your panels, higher efficiency options will be a better option. Additional equipment like electric vehicle chargers and solar batteries will also increase the cost.
Solar Financing Terms
If paying for a solar system out of pocket is too expensive, solar loans are a popular option because they reduce your upfront costs and allow you to pay for your system over five to seven years on average. Although solar loans make adopting solar energy more accessible for Madison homeowners, they can also add to the total you pay for your system, depending on your interest rate. If you put down a larger down payment, though, you can cut back on how much interest you have to pay.
Solar Panel Installation Company
The solar installer you hire to handle your switch to solar energy can play a role in your total costs. There are about 3 solar panel companies in Madison, and each can charge different amounts for labor and equipment. Some companies only sell high-quality, high-efficiency and high-price products — like Maxeon solar panels from SunPower or Tesla Powerwall batteries — so choosing those installers will generally cost more. It's best to do some research and go with the company that has the products, warranties and services you want and also fits within your budget.
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 | $22,173 | 8.9 years |
| 8 kW | $2.87 | $16,051 | $29,879 | 8.7 years |
| 10 kW | $2.81 | $19,670 | $37,742 | 8.6 years |
| 12 kW | $2.75 | $23,132 | $45,762 | 8.4 years |
| 14 kW | $2.70 | $26,436 | $53,940 | 8.2 years |
| 16 kW | $2.64 | $29,584 | $62,275 | 8.1 years |
| 18 kW | $2.59 | $32,574 | $70,767 | 7.9 years |
| 20 kW | $2.53 | $35,406 | $79,417 | 7.7 years |
How to Save on Solar Panels
Since the model of solar panels and the installation company you choose considerably influences 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: Warranties that cover defective panels and repairs over around 25 years are the best you can get in the business, and offering that kind of warranty is one indication of a good company.
- Installation Process: Homeowners should understand how exactly the installation process will go, as well as important factors like the project timeline.
- Solar Panel Brands: Not all solar installers offer the same brands of solar panels, so the brand and type of panel you want can play a considerable role in the company you choose.
- Contract: When looking over your solar installer's contract, ask questions about any terms you're not sure of and be sure you understand what happens in scenarios such as a system component breaking or if the company goes out of business.
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 Madison, MI Solar Cost FAQs
How much does it cost to install solar panels in Madison?
The average cost of solar panels in Madison 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 stuff such as the type of solar panels you want, what size system you need and how much energy you consume.
Should I lease or buy solar panels in Madison?
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 incentives and your home value won't increase. Buying solar panels is a better option if you want to get the most savings.
Can solar panels significantly reduce my power bills?
It is possible to erase your electricity bills with solar panels, but for most homeowners in Madison, that will require at least a 10-kW system. Not all homes can accommodate that size system, so you'll want to check with a local solar installer to see how many panels can fit on your roof.
How long do solar panels last in Madison?
Although the average lifespan of solar panels is 25 to 30 years, that doesn't mean they should be disposed of at that time. What this means is how much energy they produce will have decreased significantly after that point. You can decide to replace them after having them for that long or you can keep using them at a lower efficiency.
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.