Solar Panel Cost Guide in Southgate, MI (Mar 2023)
- Southgate Solar Installation Cost: $12,038
- 25-Year Savings: $15,605
- Payback Period: 10.9 Years
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Updated March 14, 2023
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Average Cost of Solar Panels in Southgate
We go over average solar pricing in Southgate.
The average cost of solar panels in Southgate is 2.81 per watt. Because a 6.1-kW system is needed to cover the energy usage of a typical home in Southgate, the average price of going solar will be about $12,038 after claiming the federal solar tax credit of 30%.
These figures are just averages, and how much solar costs for you will most likely differ based on your energy needs and what company you want to go with. But, once you've paid the initial cost of installation, the return on investment for most homeowners is typically good, with a net average savings of about $17,000 over 20 years on electricity bills.
Click the button below to get connected to a reputable solar installer in your area for a custom estimate.
Solar savings over time in Southgate
| Year | Return on Investment |
|---|---|
| 1 years | $-10,932 |
| 3 years | $-8,721 |
| 5 years | $-6,509 |
| 7 years | $-4,298 |
| 9 years | $-2,087 |
| 11 years | $125 |
| 13 years | $2,336 |
| 15 years | $4,548 |
| 17 years | $6,759 |
| 19 years | $8,970 |
| 21 years | $11,182 |
| 23 years | $13,393 |
| 25 years | $15,605 |
Top Solar Installers in Southgate
Many homeowners opt for a solar panel installer since installing solar panels by yourself can be a lot of work. The expertise that solar companies provide can be useful as well, particularly if you don't quite know what type of solar equipment you need.
You can get a free quote from a local solar installer on how much solar panels could cost for your home. Here are some nearby:
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 Southgate
Factors that Affect Solar Panel Costs in Southgate
Cost is usually one of the most important factors for homeowners considering investing in solar. There are a few key factors that will push your cost above or below the average in Southgate: solar equipment and system size, financing options and the solar installation company you choose. We'll discuss each of these briefly below.
Solar Equipment
The cost of solar panel systems varies by thousands of dollars due to some different factors. One of the main factors is the system size, which is measured in kilowatts (kW). Solar power systems that have greater efficiency or power generation use better technology and/or more equipment, both of which can raise costs. For each additional kilowatt you need, your cost can go up by about $2,810. The brand and type of equipment you get 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. Also, if you want additional equipment like an electric vehicle charger or solar batteries, this will also increase the cost.
Solar Financing Terms
Solar panels can save you money on utility bills over time, but they can also be a big investment. That's why many Southgate homeowners opt to finance their solar panel systems to make paying for solar more affordable. However, the interest on solar loans also adds to your overall costs, so it's vital to keep that in mind as well. You can always bring down the total you pay in interest and in some cases even your APR by making a larger down payment.
Solar Panel Installation Company
A final consideration when trying to estimate the cost of solar for your home or business in Southgate is the company you choose to install your PV system. Similar to choosing a company to build a deck or pool, for example, you'll have no shortage of solar installers that offer a range of services at different price points. Additionally, some companies in Southgate are more knowledgeable about local solar incentives and can help you learn about additional rebates or tax exemptions. However, they may charge more for walking you through the whole process. Even if they cost more upfront, they could end up saving you more money in the long run.
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 | $14,848 | 11.3 years |
| 8 kW | $2.87 | $16,051 | $20,112 | 11.1 years |
| 10 kW | $2.81 | $19,670 | $25,534 | 10.9 years |
| 12 kW | $2.75 | $23,132 | $31,112 | 10.7 years |
| 14 kW | $2.70 | $26,436 | $36,849 | 10.4 years |
| 16 kW | $2.64 | $29,584 | $42,742 | 10.2 years |
| 18 kW | $2.59 | $32,574 | $48,793 | 10.0 years |
| 20 kW | $2.53 | $35,406 | $55,001 | 9.8 years |
How to Save on Solar Panels
There are a lot of solar installers to choose from, all of which offer different warranties, solar panel models and price points. To help you find the right company for you, here are some tips to keep in mind:
- Reputation: Companies that have been in business for many years likely have a good reputation. This is important because it ensures that it will not only see your solar installation through, but will also provide quality aftercare and customer service, such as part repairs and replacements.
- Installation Process: Homeowners should make sure they know how exactly the installation process will be carried out, as well as important factors like the completion timeline.
- Solar Panel Brands: Different companies will carry different brands and models of panels. If you want a specific brand, make sure the solar panel installer you're considering has it.
- Contract: When looking through your solar company's contract, ask for clarification about any terms you're not sure of and be sure you understand what happens in scenarios such as a system component breaking or the company going 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 Southgate, MI Solar Cost FAQs
How much does it cost to install solar panels in Southgate?
The average cost of solar panels in Southgate 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 things such as the type of solar panels you want, what size system you need and how much energy you consume.
Is it better to lease or buy solar panels in Southgate?
Leasing solar panels can be an option if you are unable to pay upfront or get a solar loan, but since you don't own the system, you don't have access to many solar incentives. Also your home 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 financial benefits from going solar.
Is it worth going solar in Southgate?
Whether or not solar panels are worth it depends on a variety of factors like the cost of electricity near you and the amount of direct sunlight your roof gets.
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 buy 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.