Solar Panel Cost Guide in Philadelphia, PA (May 2022)
- Philadelphia Solar Installation Cost: $12,341
- 25-Year Savings: $14,305
- Payback Period: 11.6 Years
See cost of a solar system near you:
Updated 4/26/2022
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Average Cost of Solar Panels in Philadelphia
Let's take a look at the average cost of solar panels in Philadelphia.
While the national average of solar panels is $2.66 per watt, solar panels in Philadelphia generally cost around $3. The average Philadelphia homeowner needs a 6.5-kilowatt system, which would cost about $12,341, or $9,132 after the federal solar tax credit is applied.
These figures are just averages, and how much solar costs for you will most likely vary based on the amount of energy your home requires and what company you choose to go with. Many homeowners find adopting solar power is a rewarding investment. The average homeowner in Philadelphia can save about $15,000 on their electricity bills over 20 years.
You can click the button below to get connected with a top solar installer in Philadelphia for a quote for your home.
Solar savings over time in Philadelphia
| Year | Return on Investment |
|---|---|
| 1 years | $-11,275 |
| 3 years | $-9,144 |
| 5 years | $-7,012 |
| 7 years | $-4,880 |
| 9 years | $-2,749 |
| 11 years | $-617 |
| 13 years | $1,515 |
| 15 years | $3,646 |
| 17 years | $5,778 |
| 19 years | $7,910 |
| 21 years | $10,041 |
| 23 years | $12,173 |
| 25 years | $14,305 |
Top Solar Installers in Philadelphia
When going solar, many homeowners choose to hire a solar installer since DIY solar panel installation can be a time-consuming project. Plus, warranties and repairs from your solar panel company can protect your investment and lower the cost of maintenance in the long run.
There are various licensed solar professionals that can install solar panels for you. Here are our suggestions:
Best Regional Coverage
Momentum Solar
4.5
Great warranty coverage- Representatives are experts on local policies
- Concierge service ensures steady communication
-
Slightly limited service offerings
Best Technology
Tesla Energy
4.5
- 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
For many Philadelphia homeowners, the decision to adopt solar energy 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 a number of factors that significantly influence the price you'll pay, which we'll go over below.
Solar Equipment Size
When it comes to estimating the price of a solar energy system in Philadelphia, 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 consumption, which you can figure out by looking at past power bills. Your total cost can increase by around $2,550 for each additional kilowatt you need. The solar equipment you choose can increase or decrease your cost 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. However, higher efficiency could save you more over time on your electric bills. Additionally, extra products, like solar batteries, can bring your total well above the Philadelphia average.
Solar Financing Terms
For some homeowners, paying for solar out of pocket can be financially overwhelming. Solar loans are available from most installers in Philadelphia, which can bring down, or in some cases totally eliminate, your upfront costs to make solar more accessible. However, the interest on solar loans also adds to your overall costs, so it's crucial to take that into consideration as well. You can always bring down the total you pay in interest and sometimes even your APR by putting more money down.
Solar Panel Installation Company
A final consideration when trying to estimate the cost of solar for your home or business in Philadelphia is the company you choose to install your PV system. Similar to choosing a company to build a deck or pool, for instance, there's no shortage of solar installers that provide a range of services at different price points. Companies that 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 at a higher cost. It's best to do some research and find a company that has the products, warranties and services you want and also is within 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 | $2.65 | $11,775 | $12,673 | 12.0 years |
| 8 kW | $2.60 | $15,398 | $17,199 | 11.8 years |
| 10 kW | $2.55 | $18,870 | $21,876 | 11.6 years |
| 12 kW | $2.50 | $22,191 | $26,704 | 11.3 years |
| 14 kW | $2.45 | $25,361 | $31,683 | 11.1 years |
| 16 kW | $2.40 | $28,380 | $36,813 | 10.9 years |
| 18 kW | $2.35 | $31,249 | $42,094 | 10.7 years |
| 20 kW | $2.29 | $33,966 | $47,526 | 10.4 years |
Solar Incentives in Philadelphia
| Name | High Performance Building Incentives Program |
| Incentive Amount | Vary by project, but program generally requires matching funds at least equivalent to DCED funding |
| Incentive Max | Residential loans/loan guarantees: $100,000 Commercial loans/loan guarantees: $2 million Grants: Lesser of 10% of project costs or $500,000 |
| Website | Visit here |
| More Info | Click here |
| Name | ITC |
| Type | Tax Incentive |
| Incentive Amount | 26% of installation cost |
| Website | Visit here |
| Name | High Performance Buildings Incentive Program |
| Website | Visit here |
| More Info | Click here |
| Name | City of Philadelphia - Streamlined Solar Permitting and Fee Reduction |
| Website | Visit here |
| More Info | Click here |
| Name | Solar Alternative Energy Credits |
| Incentive Amount | Varies based on market conditions; during 2015 the market price for PA-sourced SRECs has ranged from approximately $32 - $55/MWh ($0.032 - $0.055/kWh) although individual trades have taken place at substantially lower and higher prices. |
| Incentive Max | Varies based on market conditions; SACP does not represent a price ceiling because it is only determined after the fact |
| Website | Visit here |
| More Info | Click here |
How to Save on Solar Panels
The company that does your system installation will affect the warranties and brands you have access to, and it will also have an impact on your total cost. Since choosing a company can be a challenge, we have some tips to help you, such as:
- Reputation: The North American Board of Certified Energy Practitioners (NABCEP) is a well-established certification organization for clean energy professionals. If your solar panel installer is NABCEP-certified, it likely have a good reputation and are qualified to do the job well. Another way you can research your installer's reputation is by reading reviews.
- Warranty: If youcare about the longevity of your solar energy system, verifying your company offers a 25-year, all-inclusive warranty can give you some peace of mind.
- Contract: Review the contract terms thoroughly to make sure you understand the total cost, project timeline rebates and warranties.
- Installation Process: When making the switch to solar energy, it's crucial to maintain an open line of communication with your solar company. Make sure you understand how the installation process will go and the project completion timeline.
Best Regional Coverage
Momentum Solar
4.5
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
Best Technology
Tesla Energy
4.5
- 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
What is the average cost of installing solar panels in Philadelphia?
This is a difficult question to answer exactly, because the cost depends on a few different 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 additional solar equipment or more efficient panels, or if you have above-average energy consumption. On the flip side, you can spend less if you want a smaller solar panel system or less efficient solar panels.
Are solar panels free in Philadelphia?
A solar panel system isn't free in Philadelphia, but there are some options that can make getting them more affordable, such as leasing solar panels or getting a solar loan. There may also be local programs or incentives that can further reduce the cost.
How will having solar panels impact how much my home is worth?
Buying or financing solar panels for your home can increase the value of your property by about 4%, according to research done by Zillow. The average home value in Philadelphia is currently $176,402, so you could be looking at a value of about $7,232 more than houses without a solar system. The specific figures will vary, but most experts agree that installing solar panels in Philadelphia is a worthwhile investment.
How long do solar panels last in Philadelphia?
Although the average lifespan of solar panels is 25 to 30 years, that doesn't mean they should be disposed of at that time. What this means is the amount of energy they produce will have decreased significantly after that point. You can replace them after having them for that long or you can continue to use 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.
