Solar Panel Cost Guide in Madison, SD (2023 Update)
- Madison Solar Installation Cost: $14,773
- 25-Year Savings: $23,402
- Payback Period: 9.7 Years
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Updated March 14, 2023
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Average Cost of Solar Panels in Madison
Find out what the average cost of installing solar panels is in Madison.
In Madison, solar panels cost about 2.39 per watt on average. The average solar panel system size in Madison is around 8.8 kilowatts, meaning a cost of about $14,773 for a solar installation, or $21,125 before the 30% federal solar tax credit is applied.
Keep in mind that the figures above are only estimates based on the average energy use of Madison homeowners. The cost of a solar system for your home may be different depending on factors unique to you, like your household energy use and solar contractor. For many homeowners, the upfront investment in solar power is worth paying. On average Madison homeowners see about $16,000 in savings on electricity bills over 20 years.
To get a free quote from a vetted solar company in Madison, you can click the button below.
Solar savings over time in Madison
| Year | Return on Investment |
|---|---|
| 1 years | $-13,246 |
| 3 years | $-10,192 |
| 5 years | $-7,138 |
| 7 years | $-4,084 |
| 9 years | $-1,030 |
| 11 years | $2,024 |
| 13 years | $5,078 |
| 15 years | $8,132 |
| 17 years | $11,186 |
| 19 years | $14,240 |
| 21 years | $17,294 |
| 23 years | $20,348 |
| 25 years | $23,402 |
Top Solar Installers in Madison
Installing solar panels yourself can be a stressful undertaking, which is why using a solar installer is a good option for many homeowners. Plus, if you'd like to maximize your investment in solar energy, using a solar company can help with that as well. Different providers can offer repairs, expertise on solar panel installation and sometimes even information on local incentives, rebates and net metering programs.
Working with a vetted solar company can make going solar easier. Here are our recommendations:
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 Madison
Factors that Affect Solar Panel Costs in Madison
For many Madison homeowners, the decision to install solar panels depends on cost. However, the range of solar installation costs can be quite wide in Madison, with typical prices between $20,000 to $40,000. There are a number of factors that greatly influence the price you'll pay, which we'll go over below.
Solar Equipment
The cost of solar panels varies by thousands of dollars due to some different factors. One of the major factors is the system size, which is measured in kilowatts (kW). Solar power systems with greater 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 $2,390. The brand and kind 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 often have a higher price tag than other brands. Efficiency also matters. Whether you're opting for high efficiency because you have a small roof 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 add-ons 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 time, but they can also be a significant investment. That's why many Madison homeowners choose to finance their solar panel systems to make paying for solar more affordable. However, the interest on solar loans also increases your total costs, so it's vital to keep that in mind 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
The remaining major cost factor you should keep in mind is the installer you choose. Given the booming popularity of renewable energy solutions in Madison, you'll have plenty of options to choose from, but each comes at different price points for labor and equipment. The size of the company can sometimes play the most considerable role in the cost of installation. Larger national companies, like SunPro and Sunrun, often have lower pricing due to more 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 discount can bring their pricing down to compete with bigger names.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $2.49 | $10,440 | $15,514 | 10.1 years |
| 8 kW | $2.44 | $13,652 | $20,953 | 9.9 years |
| 10 kW | $2.39 | $16,730 | $26,526 | 9.7 years |
| 12 kW | $2.34 | $19,674 | $32,232 | 9.5 years |
| 14 kW | $2.29 | $22,485 | $38,073 | 9.3 years |
| 16 kW | $2.25 | $25,162 | $44,047 | 9.1 years |
| 18 kW | $2.20 | $27,705 | $50,155 | 8.9 years |
| 20 kW | $2.15 | $30,114 | $56,397 | 8.7 years |
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. Because selecting a company can be difficult, we have some tips to help you, such as:
- Warranty: A quality company rises above other companies by offering the gold standard warranty — a 25-year, all-inclusive warranty covering parts, labor and performance.
- Solar Panel Brands: The kind of solar panel you want to get plays a part in which company you should opt for, since different companies provide different panels.
- Contract: Review the contract terms thoroughly to make sure you understand the overall cost, project completion timeline rebates and warranties.
- Reputation: Solar installers that have great reviews from their customers and that have been in business for many years likely provide good-quality solar panel installation and expertise.
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 Madison, SD Solar Cost FAQs
What is the average cost of installing solar panels in Madison?
The average cost of solar panels in Madison is about $11,950 for a 5-kW system and $23,900 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 use.
Are solar panels free in Madison?
A solar panel system isn't free in Madison, 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 you can take advantage of.
Can you sell solar power back to the grid in Madison?
Each state has some form of net metering programs except Tennessee, South Dakota and Alabama currently. Some states allow you to sell power back to the grid, but others just give you credit toward your future utility bills.
What solar power system size is right for my home?
To figure out what solar panel system size you need, you need to know how much energy your home uses 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 household 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.