Solar Panel Cost Guide in Spencer, MI (Mar 2023)
- Spencer Solar Installation Cost: $12,156
- 25-Year Savings: $21,862
- Payback Period: 8.9 Years
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Updated March 14, 2023
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Average Cost of Solar Panels in Spencer
Find out what the average cost of a solar system is in Spencer.
The national average cost of solar panels is $2.66 per watt, but in Spencer it's 2.81 per watt. The average Spencer homeowner needs a 6.2-kilowatt system, which would cost about $12,156 with the federal tax credit, or $17,383 before the 30% tax credit is applied.
The prices above are just estimates to give you an idea of the cost of a solar panel system. The true cost of going solar can vary depending on a few factors, such as how many panels you need, your energy usage and what company you go with. For most homeowners, the upfront investment in solar power is worth paying. On average you could be looking at about $21,000 in savings on utility bills over 20 years.
For a customized quote from a local solar company that has been pre-vetted by EcoWatch, click the button below.
Solar savings over time in Spencer
| Year | Return on Investment |
|---|---|
| 1 years | $-10,795 |
| 3 years | $-8,074 |
| 5 years | $-5,352 |
| 7 years | $-2,631 |
| 9 years | $90 |
| 11 years | $2,812 |
| 13 years | $5,533 |
| 15 years | $8,255 |
| 17 years | $10,976 |
| 19 years | $13,698 |
| 21 years | $16,419 |
| 23 years | $19,140 |
| 25 years | $21,862 |
Top Solar Installers in Spencer
Although you can install solar panels yourself, it takes extra energy and know-how. That's one of the reasons almost all homeowners choose to hire a solar panel installer. Another upside of working with a solar installer is that they can help you optimize your ROI by reducing your future costs of repairs and replacements with the help of warranties and giving you information on local incentives you can take advantage of.
If you're on the hunt for a solar installer in Spencer, the EcoWatch team has put together a list of our top suggestions here:
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 Spencer
Factors that Affect Solar Panel Costs in Spencer
Cost is typically one of the most important factors for homeowners who want to invest in solar. There are a few key factors that determine your overall cost in Spencer: solar equipment and system size, financing options and the solar installation company you choose. We'll discuss each of these briefly below.
Solar Equipment
Solar system size, which is measured in kilowatts, is one of the largest factors that influences the overall cost of going solar. For that reason, it's important to accurately assess the size of the solar energy system needed for your home by figuring out your typical energy use. The type of solar equipment you choose can increase or decrease your cost by thousands or even tens of thousands of dollars. If you choose the most efficient solar panel brands, you'll end up paying more upfront than if you opted for the most affordable panels. On the other hand, more efficient panels could save you more in the long run on your energy bills. In addition, add-on products, like solar batteries, can bring your total well above the Spencer average.
Solar Financing Terms
Many homeowners find the average cost of solar in Spencer to be prohibitively steep, even if the investment pays off over time. Thankfully, almost every solar installer in the area provides access to financing options. Solar loans drastically decrease upfront costs in most cases, but they also lead to higher prices over time because of interest. It's a good idea to include the interest you'll pay in your final cost estimate. If you can afford to put more money down upfront, you can reduce your total costs and how long it'll take to pay off the loan.
Solar Panel Installation Company
Finally, the company you choose to install your solar panel system can impact how much it costs. Spencer'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 keep up with them by offering sales and discounts. While the smaller companies might not have access to specific equipment options like Tesla Powerwall batteries or additional services like electric car 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 | $20,777 | 9.3 years |
| 8 kW | $2.87 | $16,051 | $28,017 | 9.1 years |
| 10 kW | $2.81 | $19,670 | $35,415 | 8.9 years |
| 12 kW | $2.75 | $23,132 | $42,970 | 8.7 years |
| 14 kW | $2.70 | $26,436 | $50,682 | 8.6 years |
| 16 kW | $2.64 | $29,584 | $58,552 | 8.4 years |
| 18 kW | $2.59 | $32,574 | $66,579 | 8.2 years |
| 20 kW | $2.53 | $35,406 | $74,764 | 8.0 years |
How to Save on Solar Panels
There are many companies available in Spencer, and some homeowners feel overwhelmed considering their options. Choosing the right company for you can be challenging, so here are some tips to help you decide:
- 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 large role in the company you opt for.
- Warranty: If you're concerned about the endurance of your solar panel system, making sure your company offers a 25-year, all-inclusive warranty can help put you at ease.
- Reputation: Solar system installers that have great reviews from their customers and that have been operating for many years likely provide high-quality solar panel installation and expertise.
- Contract: It's important to read through your solar installer's contract carefully to understand what services they will provide, what the warranty covers and what you can expect about the cost.
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 Spencer, MI Solar Cost FAQs
What is the average cost of installing solar panels in Spencer?
This is a tough question to answer precisely, because the cost depends on a variety of factors. Broadly speaking, it costs about $14,050 for a 5-kW system and $28,100 for a 10-kW system after the ITC is applied. It will cost more if you want other solar equipment or higher quality panels, or if you have higher-than-average energy needs. Conversely, you can spend less if you go with a smaller solar panel system or less efficient solar panels.
Can you get solar panels for free in Spencer?
Solar panels aren't free in Spencer, but there are some options that can make getting them more affordable, such as leasing solar panels or getting a solar loan. There may also be local programs or incentives that can further reduce the cost.
How much can I save on energy bills after switching to solar?
Solar panels can potentially eliminate your electricity bills depending on where you're located and the efficiency of your system. Even if it doesn't get rid of them completely, you can save a lot of money on your bills, about $1,101.70 per year.
How long do solar panels last in Spencer?
Though 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 their energy production will have decreased significantly after that point. You can choose to replace them after having them for that long or you can continue to use 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.