Solar Panel Cost Guide in Salem, NJ (2023 Update)
- Salem Solar Installation Cost: $8,954
- 25-Year Savings: $13,806
- Payback Period: 9.8 Years
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Updated September 15, 2023
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Average Cost of Solar Panels in Salem
Find out how much it might cost to switch to solar power in Salem.
While the national average of solar panels is $2.66 per watt, solar panels in Salem generally cost around 2.77. Using this figure, a typical 4.6-kW system would cost about $8,958 before the 30% federal solar tax credit is applied.
Keep in mind that the numbers above are only averages. The price you'll pay for solar will differ based on your household energy use, the type of equipment you choose, your solar contractor and more. But, once you've paid the initial cost of installation, the savings for most homeowners is usually fruitful, with a net average savings of about $19,000 over 20 years on utility bills.
To receive a free estimate from a pre-vetted solar company in Salem, you can click the button below.
Solar savings over time in Salem
| Year | Return on Investment |
|---|---|
| 1 years | $-8,878 |
| 3 years | $-8,727 |
| 5 years | $-8,575 |
| 7 years | $-8,423 |
| 9 years | $-8,272 |
| 11 years | $-8,120 |
| 13 years | $-7,968 |
| 15 years | $-7,816 |
| 17 years | $-7,665 |
| 19 years | $-7,513 |
| 21 years | $-7,361 |
| 23 years | $-7,209 |
| 25 years | $-7,058 |
Top Solar Installers in Salem
Although you can install solar panels on your own, it takes extra effort and knowledge. That's one of the reasons the majority of homeowners choose to hire a solar panel installer. The expertise that solar companies provide can be helpful as well, particularly if you aren't sure what kind of solar equipment you need.
There are various licensed solar professionals that can take care of your solar installation project. Here are our suggestions:
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
See all of the solar companies in Salem
Factors that Affect Solar Panel Costs in Salem
While the average cost of a solar system in Salem is $8,958, your actual cost may be above or below the average. There are many factors that can have a major impact on the cost of a residential solar panel installation. Below are some of the more crucial things to consider.
Solar Equipment
One of the most significant factors to consider when it comes to the cost of going solar is the size of the solar system, which is measured in kilowatts (kW). The more electricity your household consumes, the larger your system will likely need to be. You can expect to spend about $2,770 per kilowatt in Salem. 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 are often more expensive 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 more 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
If paying for a solar system out of pocket is out of reach, solar loans are a solid choice because they cut back your upfront costs and let you pay for your system over five to seven years on average. However, the interest on solar loans also adds to your all-in costs, so it's vital to take that into consideration as well. You can always reduce the total you pay in interest and possibly even your APR by putting more money down.
Solar Panel Installation Company
The solar panel installer you choose will impact your total cost to make the switch to solar energy. Different companies will bill different amounts for the equipment and labor. The size of the company sometimes plays the most significant role in your costs. Larger national companies, like SunPro and Sunrun, often have lower prices because they have greater resources and better pricing. Smaller local companies might be more costly, but they can sometimes 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 | $2.88 | $12,099 | $17,473 | 10.2 years |
| 8 kW | $2.83 | $15,822 | $23,607 | 10.0 years |
| 10 kW | $2.77 | $19,390 | $29,896 | 9.8 years |
| 12 kW | $2.71 | $22,803 | $36,341 | 9.6 years |
| 14 kW | $2.66 | $26,060 | $42,941 | 9.4 years |
| 16 kW | $2.60 | $29,163 | $49,696 | 9.2 years |
| 18 kW | $2.55 | $32,110 | $56,606 | 9.0 years |
| 20 kW | $2.49 | $34,902 | $63,671 | 8.9 years |
How to Save on Solar Panels
There are many companies available in Salem, and some homeowners feel overwhelmed considering their options. Picking the right company for you can be challenging, so here are some tips to help you decide:
- Solar Panel Brands: The type of solar panel you want to get plays a role in which installer you should choose, since different companies provide different panels.
- Contract: When looking through 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 like a system part breaking or if the company goes out of business.
- Warranty: A high-quality company rises above other companies by providing the gold standard warranty — a 25-year, all-inclusive warranty covering parts, labor and performance.
- Installation Process: One of the most important things to understand when adopting solar power is the installation process itself. Be sure to clarify any details you need to know with your solar company, such as what permits you should acquire and what the project timeline is.
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
EcoWatch's Salem, NJ Solar Cost FAQs
How much does it cost to install solar panels in Salem?
The average cost of solar panels in Salem is about $13,850 for a 5-kW system and $27,700 for a 10-kW system before the ITC, but the actual cost will depend on certain factors like the kind of solar panels you want, what size system you need and how much energy you consume.
Should I lease or buy solar panels in Salem?
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 bang for your buck from going solar.
How much can I save on electricity 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 $985.73 per year.
How many solar panels do I need to power 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 usually produce about 250 to 400 watt-hours per hour, the average home 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.