Solar Panel Cost Guide in Otsego, MN (Mar 2023)
- Otsego Solar Installation Cost: $14,174
- 25-Year Savings: $19,879
- Payback Period: 10.4 Years
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Updated March 14, 2023
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Average Cost of Solar Panels in Otsego
We break down average solar pricing in Otsego.
In Otsego, solar panels cost about 2.84 per watt on average. Because a 7.1-kW system is needed to cover the energy needs of a typical home in Otsego, the average price of going solar will be about $14,174 after claiming the federal solar tax credit of 30%.
Keep in mind that the numbers above are only averages. The price you'll end up paying for solar will differ based on your household energy use, the type of equipment you choose, your solar contractor and more. With average savings of about $18,000 on power bills over 20 years, many homeowners in Otsego find going solar has a decent ROI.
To calculate your potential ROI and connect with a local solar installer, click the button below.
Solar savings over time in Otsego
| Year | Return on Investment |
|---|---|
| 1 years | $-12,812 |
| 3 years | $-10,088 |
| 5 years | $-7,364 |
| 7 years | $-4,640 |
| 9 years | $-1,915 |
| 11 years | $809 |
| 13 years | $3,533 |
| 15 years | $6,257 |
| 17 years | $8,982 |
| 19 years | $11,706 |
| 21 years | $14,430 |
| 23 years | $17,154 |
| 25 years | $19,879 |
Top Solar Installers in Otsego
Trying to put up solar panels by yourself can be a time-consuming undertaking, which is why getting a solar installer is a good option for many homeowners. Some solar installers, particularly local ones, can help you better understand incentives in Otsego, thereby optimizing your ROI.
If you're on the hunt for a solar installer in Otsego, the EcoWatch team has put together a list of our top suggestions here:
Best Technology
Tesla Energy
- Price-match guarantee
- Sleek, efficient, and durable solar panels
- Best solar battery on the market
- Some reported issues with customer service
- Customer service varies by local dealer
Best Social Impact
Palmetto Solar
- Expansive service area
- Makes charitable contributions
- Certified B Corp
- No leases or PPAs
- Quality of installation may vary by location
See all of the solar companies in Otsego
Factors that Affect Solar Panel Costs in Otsego
Though the average cost of a solar system in Otsego is $14,174, your actual cost may be above or below the average. There are quite a few factors that can have a significant impact on the cost of a residential solar panel installation. Below are some of the more important things to take into consideration.
Solar Equipment
When it comes to estimating the cost of a solar system in Otsego, 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 usage, which you can figure out by looking at past energy bills. Your overall cost can increase by about $2,840 for each additional kilowatt you need. There are a lot of different solar panel brands and the one you choose also affects the cost. Generally, the brands that are more efficient tend to also be more expensive. In addition, the type of equipment you're looking to get can affect your total cost. If you only need panels, your system will be much less expensive than if you also need solar batteries or an electric vehicle charger.
Solar Financing Terms
Most solar companies in Otsego provide solar loans, which reduce your upfront costs of installing solar panels. You'll have to consider the long-term cost of loans, including the amount of interest you'll pay over the length of the loan. If you can only get a high-interest loan, then your total can be hundreds or even thousands of dollars above the equipment and labor cost. Making a larger down payment or securing a solar loan with a low APR could reduce your costs significantly.
Solar Panel Installation Company
A final factor to consider when trying to evaluate the cost of solar for your home or business in Otsego is the company you get to install your solar system. Similar to choosing a company to install new cabinets, for instance, there's no shortage of solar installers that provide a range of services at different price points. The company's size can sometimes play the most considerable role in the cost. Larger national companies, like SunPro and Sunrun, often have lower pricing because they have access to greater resources and bulk pricing. Smaller local companies might be more costly, but they generally have better customer service and more customization options, and the occasional sale or promotion can bring their pricing down to compete with bigger companies.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $2.95 | $12,405 | $16,268 | 10.8 years |
| 8 kW | $2.90 | $16,222 | $22,009 | 10.6 years |
| 10 kW | $2.84 | $19,880 | $27,908 | 10.4 years |
| 12 kW | $2.78 | $23,379 | $33,967 | 10.2 years |
| 14 kW | $2.73 | $26,719 | $40,185 | 10.0 years |
| 16 kW | $2.67 | $29,900 | $46,562 | 9.8 years |
| 18 kW | $2.61 | $32,921 | $53,098 | 9.6 years |
| 20 kW | $2.56 | $35,784 | $59,793 | 9.4 years |
How to Save on Solar Panels
The company that does your solar panel installation will affect the warranties and brands available to you, and it will also have an impact on your total cost. Since choosing a company can be a tough decision, we have some tips to help you, such as:
- Warranty: An all-inclusive, 25-year warranty can help keep your solar panels running smoothly and save you money on part replacement and repairs.
- Solar Panel Brands: Each solar panel brand and kind has varying levels of quality, durability and efficiency. They will come at different price points as well. The company you choose plays a role in which solar panel brands you have access to.
- Reputation: Long-standing companies likely have a good reputation. This is important because it ensures that it will not only see your solar project through, but will also provide adequate aftercare and customer support, such as part repairs and replacements.
- Contract: Look through the contract terms thoroughly to make sure you understand the overall cost, project timeline rebates and warranties.
Best Technology
Tesla Energy
- Price-match guarantee
- Sleek, efficient, and durable solar panels
- Best solar battery on the market
- Some reported issues with customer service
- Customer service varies by local dealer
Best Social Impact
Palmetto Solar
- Expansive service area
- Makes charitable contributions
- Certified B Corp
- No leases or PPAs
- Quality of installation may vary by location
EcoWatch's Otsego, MN Solar Cost FAQs
What is the average cost of installing solar panels in Otsego?
This is a tough question to answer precisely, because the cost depends on a variety of factors. Broadly speaking, it costs about $14,200 for a 5-kW system and $28,400 for a 10-kW system after the ITC is applied. It will cost more if you want other solar equipment or more efficient panels, or if you have above-average energy usage. On the flip side, you can spend less if you choose a smaller solar panel system or cheaper solar panels.
Should I lease or buy solar panels in Otsego?
Leasing solar panels can be an appealing choice, as it commonly 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 maximize your savings.
Can you sell solar power back to the grid in Otsego?
Each state has some form of net metering programs except Tennessee, South Dakota and Alabama currently. Some states let you sell power back to the grid, but others just offer you credit toward your future energy bills.
What solar power system size is right for my home?
To figure out how many solar panels you need, you should find out how much energy your home needs and how much sunlight your home gets. For a general estimate, however, since each panel can typically produce about 250 to 400 watt-hours per hour, the average household will need 20 to 35 panels.
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.