Solar Panel Cost Guide in Southgate, MI (2023 Update)
- Southgate Solar Installation Cost: $12,028
- 25-Year Savings: $15,614
- Payback Period: 10.9 Years
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Updated September 15, 2023
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Average Cost of Solar Panels in Southgate
Let's have a look at the average cost of solar panels in Southgate.
The average cost of a solar system in Southgate is 2.81 per watt. The average Southgate homeowner needs a 6.1-kilowatt system, which would cost about $12,038 with the federal tax credit, or $17,214 before the 30% tax credit is applied.
These figures are just averages, and how much solar costs for you may look different based on your energy needs and what company you want to go with. For most homeowners, the upfront investment in solar is worth paying. On average homeowners in Southgate 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 installer in Southgate for a quote for your home.
Solar savings over time in Southgate
| Year | Return on Investment |
|---|---|
| 1 years | $-10,636 |
| 3 years | $-7,851 |
| 5 years | $-5,067 |
| 7 years | $-2,282 |
| 9 years | $503 |
| 11 years | $3,287 |
| 13 years | $6,072 |
| 15 years | $8,857 |
| 17 years | $11,641 |
| 19 years | $14,426 |
| 21 years | $17,211 |
| 23 years | $19,995 |
| 25 years | $22,780 |
Top Solar Installers in Southgate
Trying to install solar panels yourself can be a dangerous task, which is why using a solar installation company is a good option for many homeowners. Also, companies with a high reputation that cost more upfront could actually save you money in the long run with their warranties, repair services and expert design.
Working with a licensed solar company 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 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 primary factors that affect your total cost in Southgate: solar equipment and system size, financing options and the solar installation company you choose. We'll go over each of these briefly below.
Solar Equipment
The size of the solar system you need, which is measured in kilowatts, is the most important cost factor to consider. For every additional kilowatt you need, you can expect your total to increase by nearly $2,810. The solar equipment you choose can bring your price up or down by thousands or even tens of thousands of dollars. If you get the most efficient solar panel brands, you'll end up paying more upfront than if you opted for the most affordable panels. However, higher efficiency could save you more in the long run on your energy bills. In addition, extra products, like solar batteries, can bring your total well above the Southgate average.
Solar Financing Terms
Many homeowners find the average cost of solar in Southgate to be prohibitively expensive, even if the investment pays off over time. Fortunately, nearly every solar installer in the area provides access to financing options. Solar loans drastically decrease upfront costs in most cases, but they also result in a higher cost over time because of interest. When trying to figure out your overall cost, you should also calculate the interest you'll pay if you decide on a solar loan. Also, paying more on your down payment can reduce the total interest paid over time.
Solar Panel Installation Company
The solar installation company you choose will influence your total cost to adopt solar power. Different companies will charge different amounts for the equipment and labor. 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 many 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:
- Contract: When looking over your solar company's contract, ask for clarification about any terms you're not sure of and make sure you understand what happens in scenarios such as a system component breaking or if the company goes out of business.
- Installation Process: Make sure you're on the same page with the company in regard to how the installation process will go and what needs to be done before your solar system is installed, such as repairing your electrical system or roof.
- Reputation: Your solar installer should have a good reputation as a company and have proven expertise in the field. A couple of ways to check this are to look for whether a company has technicians that hold a certification from the North American Board of Certified Energy Practitioners (NABCEP) and if it has good reviews from previous customers.
- Solar Panel Brands: Different companies have different brands and kinds of panels. If you know you want a specific brand, make sure the solar company you're considering has it.
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 real cost will depend on stuff like 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 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 financial benefits from going solar.
How will solar panels impact my property value?
Solar panels can increase the value of your home considerably as long as you buy or finance your panels and don't opt for a solar lease or power purchase agreement (PPA). According to research done by Zillow, the average home value increases by about 4.1% after installing solar panels."
How long do solar panels last in Southgate?
On average, the lifespan of solar panels is 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 amount 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.