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

  • Orem Solar Installation Cost: $10,332
  • 25-Year Savings: $14,753
  • Payback Period: 10.3 Years

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EcoWatch Local Advisors

By EcoWatch Local Advisors

Updated 7/19/2022

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Average Cost of Solar Panels in Orem

See how much it might cost to install solar panels in Orem.

In Orem, solar panels cost about $3 per watt on average. The average solar panel system size in Orem is around 5.2 kilowatts, meaning a cost of about $10,332 for a solar installation, or $7,646 after the federal solar tax credit is applied.

Keep in mind that the numbers above are only averages. The price you'll pay for solar may vary based on your household energy consumption, the type of solar panels you want to get, your solar contractor and more. Even with the high initial cost, the average Orem homeowner can save around $18,000 on their energy bills over 20 years, which is one of the positives of solar.

You can click the button below to get connected with a top solar company in Orem that can help you get a more accurate cost estimate for your home.

Solar savings over time in Orem

Year Return on Investment
1 years $-9,329
3 years $-7,322
5 years $-5,315
7 years $-3,309
9 years $-1,302
11 years $705
13 years $2,712
15 years $4,719
17 years $6,725
19 years $8,732
21 years $10,739
23 years $12,746
25 years $14,753

Top Solar Installers in Orem

When going solar, many homeowners prefer to hire a solar installation company since handling can be a difficult project. Some solar companies, particularly local ones, can help you take advantage of incentives in Orem, therefore optimizing your ROI.

If you're searching for a solar installer in Orem, the EcoWatch team has organized a list of our top suggestions here:

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

The cost of installing a solar system in Orem can vary by more than $10,000 from home to home. Your actual cost is determined by several factors. The biggest one is the size of the system your household needs, and other factors include equipment choices, financing options and the solar installer you choose.

Solar Equipment Size

The cost of solar panel systems varies by thousands of dollars due to a few different factors. One of the notable factors is the system size. Solar power systems that have greater efficiency or power generation require 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. Some solar panel brands — like Maxeon from SunPower — are more costly upfront but also tend to offer better efficiency. In a city like Orem, where sunlight is abundant, efficiency can quickly pay off. In addition, if you have a small roof or limited space for your panels, higher efficiency options will be more impactful. Additional equipment like electric vehicle chargers and solar batteries will also increase the cost.

Solar Financing Terms

Most solar companies in Orem have solar loans, which reduce the initial cost of installing a solar system. However, the interest on solar loans also adds to your all-in costs, so it's important to consider that as well. You can always bring down the total you pay in interest and in some cases even your APR by making a larger down payment.

Solar Panel Installation Company

The solar panel installer you select will influence your total cost to adopt solar power. Different companies will charge different amounts for the equipment and labor. Additionally, some companies in Orem are more knowledgeable about local solar incentives and can help you learn about additional rebates or tax exemptions. However, they may charge more for walking you through the whole process. Even if they cost more upfront, they could help you save 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 $2.79 $12,375 $16,521 10.7 years
8 kW $2.73 $16,183 $22,345 10.5 years
10 kW $2.68 $19,832 $28,328 10.3 years
12 kW $2.63 $23,322 $34,469 10.1 years
14 kW $2.57 $26,654 $40,770 9.9 years
16 kW $2.52 $29,827 $47,228 9.7 years
18 kW $2.47 $32,842 $53,846 9.5 years
20 kW $2.41 $35,698 $60,622 9.3 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
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Name ITC
Type Tax Incentive
Incentive Amount 26% of installation cost
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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 model of solar panels and the installation company you choose have an impact on your costs and your system's durability and efficiency, it's important to pick the right ones for you. Here are some things to keep in mind to help with your decision:

  • Solar Panel Brands: Different companies will carry various brands and types of panels. If you prefer a specific brand, make sure the solar company you're considering has it.
  • Contract: It's important to look over your solar installer's contract carefully to understand what services they will provide, what the warranty covers and what you can expect about the cost.
  • Installation Process: Get detailed information from your solar installer about the installation process and what to expect, such as when the site survey will be completed and what the project timeline is.
  • 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.

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

How much does it cost to install solar panels in Orem?

The average cost of solar panels in Orem is about $13,400 for a 5-kW system and $26,800 for a 10-kW system before the ITC, but the actual cost will depend on things like 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 Orem?

Leasing solar panels can be an option if you are unable to pay upfront or get a solar loan, but since you don't own the system, you don't have access to many solar incentives. Also your home 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 savings from going solar.

How much can I save on energy bills after installing solar panels?

It is possible to eliminate your electricity bills with solar panels, but for most homeowners throughout Orem, that will require at least a 10-kW system. Not all homes will have the roof space for that size system, so you'll want to contact a local solar installer to see how many panels can fit on your roof.

How many solar panels do I need to power my home?

The exact number of solar panels you need depends on your household energy consumption and how much 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 install 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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