Solar Panel Cost Guide in Salem, NJ (Mar 2023)
- Salem Solar Installation Cost: $8,958
- 25-Year Savings: $13,803
- Payback Period: 9.8 Years
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Updated March 14, 2023
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Average Cost of Solar Panels in Salem
Find out how much it might cost to make the switch to solar in Salem.
In Salem, solar panels cost about 2.77 per watt on average. The average solar panel system size in Salem is around 4.6 kilowatts, meaning a cost of about $8,958 for a solar installation, or $12,810 before the 30% federal solar tax credit is applied.
Remember 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 solar system you choose, your solar contractor and more. But, after you've paid the upfront cost of installation, the savings for most homeowners is usually good, with a net average savings of about $19,000 over 20 years on electricity bills.
To calculate your potential savings and connect with a local solar company, click the button below.
Solar savings over time in Salem
| Year | Return on Investment |
|---|---|
| 1 years | $-8,048 |
| 3 years | $-6,227 |
| 5 years | $-4,406 |
| 7 years | $-2,585 |
| 9 years | $-764 |
| 11 years | $1,057 |
| 13 years | $2,877 |
| 15 years | $4,698 |
| 17 years | $6,519 |
| 19 years | $8,340 |
| 21 years | $10,161 |
| 23 years | $11,982 |
| 25 years | $13,803 |
Top Solar Installers in Salem
Putting up solar panels yourself can be a stressful project, which is why using a solar installer is a good option for many homeowners. A solar company can also help save you money over time by providing warranties, repairs and system component replacements.
If you'd like to switch to solar energy but still aren't sure which solar system company to go with, here are our suggestions for providers in Salem:
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
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
See all of the solar companies in Salem
Factors that Affect Solar Panel Costs in Salem
There are many criteria that can influence your installation cost, such as the size of your system, the equipment you choose, your financing options and the specific company that performs the installation.
Solar Equipment
System size, which is measured in kilowatts, is one of the largest factors that influences the overall cost of installing solar panels. That's why it's important to accurately ascertain the size of the solar energy system needed for your home by figuring out your typical energy use. There are a lot of different solar panel brands and the one you choose also affects the cost. Typically, the brands that are more efficient tend to also cost more. Additionally, the type of equipment you choose can affect your total cost. If you only need panels, your system will be far less expensive than if you also need solar batteries or an electric vehicle charger.
Solar Financing Terms
Many homeowners find the average cost of solar in Salem to be too steep, even if the investment pays off over time. Fortunately, almost every solar installer in the area provides financing options. Solar loans greatly decrease upfront costs in most cases, but they also result in a higher cost over time due to interest. When figuring 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 installer you pick will influence your total cost to go solar. Different companies will bill different amounts for the equipment and labor. Some companies only sell products with high efficiency and therefore a higher price point — like Maxeon solar panels from SunPower or Tesla Powerwall batteries — so choosing those installers will generally come with an above-average cost. It's best to do some research and find a company that provides the products, warranties and services you're looking for and also fit into your budget.
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 a lot of solar installers to choose from, all of which offer different warranties, solar panel models and price points. To help you pick the right company for you, here are some tips to keep in mind:
- Warranty: If you care about the durability of your solar system, ensuring your installer offers a 25-year, all-inclusive warranty can give you some peace of mind.
- Contract: Look through the contract terms carefully to make sure you understand the total cost, project completion timeline incentives and warranties.
- Solar Panel Brands: The brand of solar panel you want plays a part in which installer you should go with, since different companies offer different panels.
- Installation Process: When making the switch to solar energy, it's essential to keep an open line of communication with your solar company. Make sure you understand how the installation process works and the completion timeline.
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
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
EcoWatch's Salem, NJ Solar Cost FAQs
What is the average cost of installing solar panels in Salem?
This is a tough question to answer exactly, because the cost depends on many factors. Generally speaking, it costs about $13,850 for a 5-kW system and $27,700 for a 10-kW system after the ITC is applied. It will cost more if you want additional solar equipment or more efficient panels, or if you have above-average energy consumption. On the other hand, you can spend less if you opt for a smaller solar panel system or cheaper solar panels.
Is cost the most important consideration when buying solar panels?
Cost is definitely one of the most important things to keep in mind when buying solar panels, but other important factors include efficiency, durability, and quality.
How much can I save on electricity bills after switching to solar?
It is possible to eradicate your electricity bills with solar panels, but for most homeowners in Salem, that will require at least a 10-kW system. Not all homes will have the roof space for that size system, so you'll want to contact a local solar installer to see how many panels can fit on your roof.
How long do solar panels last in Salem?
Even though the average lifespan of solar panels is 25 to 30 years, that doesn't mean they are completely unusable at that time. What this means is how much energy they produce will have decreased significantly after that point. You can opt to replace them once you've had them for that long or you can keep using 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.