Solar Panel Cost Guide in Orem, UT (Sep 2022)

  • Orem Solar Installation Cost: $9,774
  • 25-Year Savings: $15,311
  • Payback Period: 9.7 Years

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EcoWatch Local Advisors

By EcoWatch Local Advisors

Updated 9/16/2022

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Average Cost of Solar Panels in Orem

Let's have a look at the average cost of solar in Orem.

Currently, the national average cost of solar panels is $2.66 per watt. However, in Orem, the typical cost of solar panels is $3 per watt. The average Orem homeowner needs a 5.2-kilowatt system, which would cost about $9,774, or $7,233 after the federal solar tax credit of 30% is applied.

The true cost of your system can go above or below the average in Orem depending on a few factors, such as the type of solar panels you choose and the solar contractor you hire. Many homeowners find adopting solar power is a sound investment. The average homeowner in Orem can save around $18,000 on their power bills over 20 years.

For a customized quote from a local solar installer that has been pre-vetted by EcoWatch, click the button below.

Solar savings over time in Orem

Year Return on Investment
1 years $-8,771
3 years $-6,764
5 years $-4,757
7 years $-2,750
9 years $-743
11 years $1,263
13 years $3,270
15 years $5,277
17 years $7,284
19 years $9,291
21 years $11,297
23 years $13,304
25 years $15,311

Top Solar Installers in Orem

Although you can install solar panels yourself, it takes extra time and expertise. That's one of the reasons the majority of homeowners choose a solar panel installer. Plus, if you're unsure what kind of solar panels and equipment you may need, a solar company can help you find the right equipment for you after a site survey and consultation.

Working with a professional solar installer can help your solar project go smoothly. Here are our recommendations:

Best National Provider

SunPower

★★★★★
5.0

  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage
  • Expensive
  • Customer service varies by local dealer

Best Solar Financing

Blue Raven Solar

★★★★★
4.5

  • Industry-leading in-house financing
  • Competitive pricing
  • Excellent reputation
  • Doesn't offer solar batteries (coming 2022)

Outstanding Local Installer

ES Solar

★★★★★
4.5

  • Representatives are experts on local policies
  • Lifetime workmanship warranty
  • Outstanding customer service
  • No leases or PPAs
  • Energy audits only available 12 months after installation

See all of the solar companies in Orem

Factors that Affect Solar Panel Costs in Orem

There are many factors that can play into your solar system installation cost, such as the size of your system, the equipment you choose, your financing options and the specific company that does the installation.

Solar Equipment Size

The cost of solar panel systems varies by thousands of dollars due to a few different factors. One of the key factors is the system size. Solar power systems with better efficiency or power production need 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 $2,680. There are a lot of different solar panel brands and the one you pick also changes the cost. Generally speaking, the brands that offer higher efficiency tend to also cost more. In addition, the type of equipment you're looking to install 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

For some homeowners, paying for solar out of pocket can be financially overwhelming. Solar loans are offered by most installers in Orem, which can reduce, or in some cases eliminate, your upfront costs to make solar more affordable. Though solar loans make adopting solar energy more accessible for Orem 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 cut back on how much interest you have to pay.

Solar Panel Installation Company

The remaining major cost factor you should keep in mind is the installer you choose. Given the massive popularity of green energy solutions in Orem, you'll have plenty of options to choose from, but each comes at various price points for labor and equipment. The size of the company can sometimes play the most significant role in the cost. Larger national companies, like SunPro and Sunrun, often have lower prices because of access to more resources and bulk 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 promotion can bring their pricing down to compete with bigger companies.

Solar Panel Cost Data by System Size

System size Cost per system watt Solar system cost 25-Year savings Payback period
6 kW $2.79 $11,706 $17,190 10.1 years
8 kW $2.73 $15,308 $23,220 9.9 years
10 kW $2.68 $18,760 $29,400 9.7 years
12 kW $2.63 $22,062 $35,730 9.5 years
14 kW $2.57 $25,213 $42,210 9.3 years
16 kW $2.52 $28,215 $48,841 9.2 years
18 kW $2.47 $31,067 $55,621 9.0 years
20 kW $2.41 $33,768 $62,552 8.8 years

Solar Incentives in Orem

Name Renewable Energy Systems Tax Credit (Corporate)
Incentive Amount Commercial wind, geothermal electric, and biomass systems 660 kW or greater, and solar PV systems 2 MW or greater: 0.35¢/kWh ($0.0035/kWh) for 4 years
Other commercial technologies and commercial wind, geothermal electric, solar PV, and biomass systems smaller than 600 kW: 10% of installed cost
Photovoltaic systems between 660 kW and 2 MW: May choose either 0.35¢/kWh ($0.0035/kWh) for 4 years or 10% of installed cost
Incentive Max Residential: $2,000
Commercial Production Tax Credit: No limit
Commercial Investment Tax Credit: $50,000
Website Visit here
More Info Click here

Name ITC
Type Tax Incentive
Incentive Amount 26% of installation cost
Website Visit here

Name Renewable Energy Systems Tax Credit (Personal)
Incentive Amount Residential: 25%
Commercial wind, geothermal electric, and biomass systems 660 kW or greater 0.35¢/kWh ($0.0035/kWh) for 4 years
Other commercial technologies and commercial wind, geothermal electric, and biomass systems smaller than 660 kW: 10% of installed cost
Solar photovoltaic systems 2 MW or greater: 0.35¢/kWh ($0.0035/kWh) for 4 years
Solar photovoltaic systems smaller than 660 kW: 10% of installed costSolar photovoltaic systems between 660 kW and 2 MW: May choose either 0.35¢/kWh ($0.0035/kWh) for 4 years or 10% of installed cost
Incentive Max Residential: $2,000 (phases down for PV systems beginning in 2018)
Commercial Production Tax Credit: No limit
Commercial Investment Tax Credit: $50,000
Website Visit here
More Info Click here

How to Save on Solar Panels

Since the kind of solar panels and the installer you choose significantly affects your costs and your system's durability and efficiency, it's important to select the right ones for you. Here are some things to keep in mind to help with your decision:

  • 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.
  • Installation Process: Get details from your solar installer about the installation process and what to expect, including when the site survey will be completed and how long it will take.
  • Solar Panel Brands: Homeowners will have different preferences for panels depending on their roof configurations and how much efficiency they need. While there are many options for which type of solar panel you can get, not every company will have the exact one you may want or need, so be sure to take a look at their list of offerings before making your decision.
  • Contract: When looking over your solar installer's contract, ask questions about any terms you're not sure of and be sure you understand what happens in scenarios like a system component breaking or if the company goes out of business.

Best National Provider

SunPower

★★★★★
5.0

  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage
  • Expensive
  • Customer service varies by local dealer

Best Solar Financing

Blue Raven Solar

★★★★★
4.5

  • Industry-leading in-house financing
  • Competitive pricing
  • Excellent reputation
  • Doesn't offer solar batteries (coming 2022)

Outstanding Local Installer

ES Solar

★★★★★
4.5

  • Representatives are experts on local policies
  • Lifetime workmanship warranty
  • Outstanding customer service
  • No leases or PPAs
  • Energy audits only available 12 months after installation

EcoWatch's Orem, UT Solar Cost FAQs

What is the average cost of installing solar panels in Orem?

This is a tough question to answer exactly, because the cost depends on many factors. Broadly speaking, it costs about $13,400 for a 5-kW system and $26,800 for a 10-kW system after the ITC is applied. You can expect to pay more if you want other 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 expensive solar panels.

Should I lease or buy solar panels in Orem?

Leasing solar panels can be an option if you are unable to pay upfront or secure a solar loan, but since you don't own the system, you can't take advantage of many solar incentives. Also your property value won't increase, so you'll have less savings over time. If you can afford to buy a solar system upfront, then buying is the better option if you want the most bang for your buck from going solar.

Can you sell solar power back to the grid in Orem?

Each state has some kind of net metering programs except Tennessee, South Dakota and Alabama currently. Some states let you sell power back to the grid, but others just give you credit toward your future energy bills.

What solar power system size is right for my home?

The exact number of solar panels you need depends on your household energy usage and the average daily sunlight your roof gets. You can look at your energy bills for the past year to get an idea of the solar system size you'll need. The average household has to buy between 20 and 35 panels to cover their typical energy usage.

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.

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