Solar Panel Cost Guide in Philadelphia, PA (2023 Update)
- Philadelphia Solar Installation Cost: $11,674
- 25-Year Savings: $14,972
- Payback Period: 11.0 Years
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Updated March 14, 2023
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Average Cost of Solar Panels in Philadelphia
Find out what the average cost of installing solar panels is in Philadelphia.
Currently, the national average cost of solar panels is $2.66 per watt. However, in Philadelphia, the average cost of solar panels is 2.55 per watt. Using this figure, a typical 6.5-kW system would cost about $11,674 before the 30% federal solar tax credit is applied.
These figures are just estimates, and your own solar costs will most likely look different based on your specific situation and what company you go with. Many homeowners find installing a solar panel system is a sound investment. The average homeowner in Philadelphia can save about $15,000 on their power bills over 20 years.
To see your potential ROI and connect with a local solar company, click the button below.
Solar savings over time in Philadelphia
| Year | Return on Investment |
|---|---|
| 1 years | $-10,608 |
| 3 years | $-8,476 |
| 5 years | $-6,345 |
| 7 years | $-4,213 |
| 9 years | $-2,082 |
| 11 years | $50 |
| 13 years | $2,182 |
| 15 years | $4,313 |
| 17 years | $6,445 |
| 19 years | $8,577 |
| 21 years | $10,708 |
| 23 years | $12,840 |
| 25 years | $14,972 |
Top Solar Installers in Philadelphia
When making the switch to solar, many homeowners opt to go with a solar company since installing solar panels yourself can be a challenging project. Companies can also provide access to quality options of the best solar panels and help you choose which one will be best for your home.
If you'd like to make the switch to solar but still aren't sure which solar panel company to go with, here are our recommendations for providers near you:
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 Philadelphia
Factors that Affect Solar Panel Costs in Philadelphia
The cost of installing a solar system in Philadelphia can vary by more than $10,000 from home to home. Your actual cost depends on several factors. The biggest one is your system size, and other factors include the equipment you choose, financing options and the solar installer you choose.
Solar Equipment
The cost of solar panel systems varies by thousands of dollars due to some different factors. One of the notable factors is the system size, which is measured in kilowatts (kW). Solar power systems that have higher efficiency or power generation use better technology and/or more equipment, both of which can increase costs. For each additional kilowatt you need, your cost can go up by about $2,550. The brand and type of equipment you choose for your solar system can raise or lower the price quite significantly. If you prefer a trusted brand name like Tesla or SunPower, these often have a higher price tag 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 greater savings over time. Plus, if you want additional equipment like an electric vehicle charger or solar batteries, this will also raise the cost.
Solar Financing Terms
Solar panels can save you money on energy bills over many years, but they can also be a big investment. That's why many Philadelphia homeowners decide to finance their solar panel systems to make paying for solar more affordable. While solar loans make switching to solar energy more accessible for Philadelphia homeowners, they can also raise the total you pay for your system, depending on your interest rate. If you make a larger down payment, though, you can avoid paying as much in interest.
Solar Panel Installation Company
The solar company you hire to handle your switch to clean energy can have an effect on your total costs. There are about 3 solar installation companies operating throughout Philadelphia, and each can charge varying amounts for labor and equipment. Larger national companies usually have lower costs, but some local companies undercut them by promoting sales and discounts. While the smaller companies might not have access to specific equipment options like Tesla Powerwall batteries or extra 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 | $2.65 | $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 company you go with will be a major factor in determining not only your overall costs, but also the types of solar panel brands, warranties, and other equipment you have access to. When choosing a solar company, there are some important things you should take into account, including:
- Installation Process: Get detailed information from your solar company about the installation process and what to expect, including when the site survey will be done and how long it will take.
- Contract: It's important to look over your solar installer's contract closely to understand what services they will provide, what the warranty covers and what you can expect about your solar system's energy production.
- Solar Panel Brands: Different companies carry various brands and types of panels. If you know you want a specific brand, make sure the solar company you're considering has it.
- Warranty: If you're concerned about the longevity of your solar panel system, checking if your installer offers a 25-year, all-inclusive warranty can help put you at ease.
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 Philadelphia, PA Solar Cost FAQs
How much does it cost to install solar panels in Philadelphia?
This is a hard question to answer exactly, because the cost depends on many factors. Broadly speaking, it costs about $12,750 for a 5-kW system and $25,500 for a 10-kW system after the ITC is applied. You can expect to pay more if you want extra solar equipment or more efficient panels, or if you have higher-than-average energy needs. On the flip side, 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 Philadelphia?
A solar panel system isn't free in Philadelphia, but there are some options that can make getting them more feasible, such as leasing solar panels or getting a solar loan. There may also be local programs or incentives that can help lower the cost.
How much can I save on energy bills after switching to solar?
It is possible to eliminate your electricity bills with solar panels, but for most homeowners in Philadelphia, that will require at least a 10-kW system. Not all homes will have roofs that can accommodate that size system, so you'll want to check with a local solar installer to see how many panels can fit on your roof.
How long do solar panels last in Philadelphia?
On average, solar panels can last about 25 to 30 years. Some even last up to 50 years, but their efficiency goes down by about 0.8% each year. You can choose to replace them sooner if you want to maintain a higher level of energy production.
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.