Solar Panel Cost Guide in Philadelphia, PA (2023 Update)
- Philadelphia Solar Installation Cost: $11,673
- 25-Year Savings: $14,973
- Payback Period: 11.0 Years
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Updated September 15, 2023
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Average Cost of Solar Panels in Philadelphia
See how much it might cost to switch to solar power in Philadelphia.
While the national average of solar panels is $2.66 per watt, solar panels in Philadelphia generally cost about 2.55. To account for the typical energy needs of the average home in Philadelphia, most homeowners require a 6.5-kilowatt system. Using the figure above, a solar installation costs around $11,674, or $16,694 before the federal solar tax credit of 30% is applied.
How much you pay can go higher or lower than the average in Philadelphia depending on a few factors, such as the kind of solar panels you choose and the solar contractor you hire. For many homeowners, the upfront investment in solar panels is worth paying. On average homeowners in Philadelphia see about $15,000 in savings on electricity bills over 20 years.
Click the button below to get connected to a highly rated solar company in Philadelphia for a custom quote.
Solar savings over time in Philadelphia
| Year | Return on Investment |
|---|---|
| 1 years | $-10,382 |
| 3 years | $-7,802 |
| 5 years | $-5,221 |
| 7 years | $-2,641 |
| 9 years | $-60 |
| 11 years | $2,520 |
| 13 years | $5,101 |
| 15 years | $7,681 |
| 17 years | $10,262 |
| 19 years | $12,842 |
| 21 years | $15,423 |
| 23 years | $18,004 |
| 25 years | $20,584 |
Top Solar Installers in Philadelphia
Trying to install solar panels by yourself can be a challenging project, which is why getting a solar installer is a good option for many homeowners. A solar company can also help save you money over the lifespan of your system by offering warranties, repairs and component replacements.
You can work with a local solar installer to get a free quote on how much solar panels could cost for your home. Here are some nearby:
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 Philadelphia
Factors that Affect Solar Panel Costs in Philadelphia
For many Philadelphia homeowners, the decision to install solar panels depends on cost. However, the range of solar installation costs can be quite wide in Philadelphia, with typical prices between $20,000 to $40,000. There are various factors that significantly influence the price you'll pay, which we'll go over below.
Solar Equipment
System size, which is measured in kilowatts, is one of the largest factors that influences the overall cost of installing solar panels. For that reason, it's crucial to accurately gauge the size of the solar energy system needed for your home by figuring out your average energy use. 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. On the other hand, higher efficiency could save you more over time on your power bills. Additionally, extra products, such as solar batteries, can bump up your total well above the Philadelphia average.
Solar Financing Terms
Solar panels can save you money on utility bills over time, but they can also be a big investment. That's why many Philadelphia homeowners choose to finance their solar panel systems to offset upfront costs. When trying to figure out your overall cost, you should also calculate the interest you'll pay if you opt for a solar loan. Also, paying more on your down payment can lower the total interest paid over time.
Solar Panel Installation Company
The solar company you choose to handle your switch to sustainable energy can have an effect on your total costs. There are about 3 solar installation companies in Philadelphia, and each can charge different amounts for labor and equipment. Additionally, some companies in Philadelphia know more about local solar incentives and can help you make good use of additional rebates or tax exemptions. Though, 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 | $2.65 | $11,138 | $13,309 | 11.4 years |
| 8 kW | $2.60 | $14,566 | $18,031 | 11.2 years |
| 10 kW | $2.55 | $17,850 | $22,896 | 11.0 years |
| 12 kW | $2.50 | $20,992 | $27,904 | 10.7 years |
| 14 kW | $2.45 | $23,990 | $33,054 | 10.5 years |
| 16 kW | $2.40 | $26,846 | $38,347 | 10.3 years |
| 18 kW | $2.35 | $29,560 | $43,783 | 10.1 years |
| 20 kW | $2.29 | $32,130 | $49,362 | 9.9 years |
How to Save on Solar Panels
The solar panel company you choose will influence not only your total costs, but also the types of solar panel brands, warranties, and other equipment you can get. When choosing a solar company, there are a few important things you should keep in mind, including:
- Warranty: Warranties that provide coverage for defective panels and repairs over around 25 years are the gold standard in the business, and offering such a warranty is one mark of a quality company.
- Solar Panel Brands: Different companies will have various brands and kinds of panels. If you prefer a specific brand, make sure the solar company you're considering has it.
- Installation Process: Get details from your solar installer about the installation process and what to expect, including when the site survey will be done and what the project timeline is.
- Contract: When reading through your solar installer's contract, ask questions about any terms you're not sure of and be sure you understand what happens in scenarios such as a system component breaking or if the company goes out of business.
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 Philadelphia, PA Solar Cost FAQs
How much does it cost to install solar panels in Philadelphia?
The average cost of solar panels in Philadelphia is about $12,750 for a 5-kW system and $25,500 for a 10-kW system before the ITC, but the actual cost will depend on things such as the type of solar panels you want, what size system you need and how much energy you use.
Should I lease or buy solar panels in Philadelphia?
Leasing solar panels can be an attractive choice, because it typically comes with low or $0 upfront payments. The drawback 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 tax rebates and credits and your home value won't increase. Buying solar panels is a better way to go if you want to maximize your savings.
Can solar panels significantly reduce my electricity bills?
Solar panels can potentially eliminate your electricity bills depending on your location and how much sunlight your home gets. Even if it doesn't get rid of them completely, you can save a lot of money on your bills, about $814.92 per year.
How often do you have to replace solar panels?
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 their energy production will have decreased significantly after that point. You can choose 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.