Solar Panel Cost Guide in Lexington, VA (2023 Update)
- Lexington Solar Installation Cost: $15,042
- 25-Year Savings: $25,653
- Payback Period: 9.2 Years
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Updated September 15, 2023
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Average Cost of Solar Panels in Lexington
Find out how much it might cost to switch to solar power in Lexington.
Currently, the national average cost of solar panels is $2.66 per watt. However, in Lexington, the typical cost of a solar system is 2.75 per watt. To account for the typical energy usage of the average home in Lexington, most homeowners require a 7.8-kilowatt system. Using the per-watt figure above, a solar installation costs around $15,034, or $21,499 before the federal solar tax credit of 30% is applied.
The prices above are just estimates to give you an idea of how much a solar energy system could cost. The true cost of going solar can vary quite a bit depending on several factors, such as what size system you need, your energy usage and what installation company you go with. But, once you've paid the initial cost of installation, the ROI for most homeowners is usually rewarding, with a net average savings of about $20,000 over 20 years on energy bills.
You can click the button below to get connected with a top solar installer in Lexington that can help you get a more accurate cost estimate for your home.
Solar savings over time in Lexington
| Year | Return on Investment |
|---|---|
| 1 years | $-13,443 |
| 3 years | $-10,245 |
| 5 years | $-7,048 |
| 7 years | $-3,850 |
| 9 years | $-652 |
| 11 years | $2,546 |
| 13 years | $5,744 |
| 15 years | $8,942 |
| 17 years | $12,140 |
| 19 years | $15,338 |
| 21 years | $18,535 |
| 23 years | $21,733 |
| 25 years | $24,931 |
Top Solar Installers in Lexington
Although it's possible to install solar panels on your own, it takes extra time and expertise. That's one of the reasons almost all homeowners choose a solar panel installer. Also, companies with a good reputation that are more expensive upfront could actually save you money in the long term with their warranties, repair services and expert design.
If you'd like to switch to solar energy but still aren't sure which solar installer to go with, here are our suggestions for providers nearby:
Best Solar Financing
Blue Raven Solar
- Industry-leading in-house financing
- Competitive pricing
- Excellent reputation
- Doesn't offer solar batteries
See all of the solar companies in Lexington
Factors that Affect Solar Panel Costs in Lexington
Even though the average cost of a solar system in Lexington is $15,034, your actual cost may be above or below the average. There are many factors that can have a major impact on the cost of a residential solar panel installation. Below are some of the more crucial things to take into consideration.
Solar Equipment
The size of the solar energy system you need for your home, which is measured in kilowatts, is the most important cost factor to consider. For every additional kilowatt you need, you can expect your total to increase by nearly $2,750. Some solar panel brands — like Maxeon from SunPower — are more expensive upfront but also tend to offer better efficiency. In a city like Lexington, where sunlight is relatively abundant, efficiency can quickly pay off. In addition, if you have a small roof or you don't have a lot of space for your panels, higher efficiency options will be a better option. Additional equipment like electric vehicle chargers and solar batteries will also increase the cost.
Solar Financing Terms
Solar panels can save you money on energy bills over many years, but they can also be a significant investment. That's why many Lexington homeowners choose to finance their solar panel systems to offset upfront costs. You'll have to consider the long-term cost of financing options, including the total interest you'll pay over the length of the loan. If you're only able to get a high-interest loan, then your total can be hundreds or even thousands of dollars more than the original cost. Making a larger down payment or finding a solar loan with a low APR could reduce your costs significantly.
Solar Panel Installation Company
Lastly, the company you choose to install your solar panel system can play a role in determining your pricing. Lexington's solar companies all have different labor costs and add varying upcharges to equipment. Additionally, some companies in Lexington are more knowledgeable about local solar incentives and can help you take advantage of additional rebates or tax exemptions. Though, they may charge more for walking you through the whole process. Even if they cost more upfront, they could end up saving you 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 | $2.86 | $12,012 | $19,235 | 9.6 years |
| 8 kW | $2.81 | $15,708 | $25,955 | 9.4 years |
| 10 kW | $2.75 | $19,250 | $32,829 | 9.2 years |
| 12 kW | $2.69 | $22,638 | $39,856 | 9.1 years |
| 14 kW | $2.64 | $25,872 | $47,038 | 8.9 years |
| 16 kW | $2.58 | $28,952 | $54,374 | 8.7 years |
| 18 kW | $2.53 | $31,878 | $61,864 | 8.5 years |
| 20 kW | $2.48 | $34,650 | $69,507 | 8.3 years |
How to Save on Solar Panels
The solar installer you opt for will affect not only your total costs, but also the kinds of solar panel brands, warranties, and other equipment you have access to. When choosing a solar company, there are several important things you should consider, including:
- Installation Process: Homeowners should understand how exactly the installation process will go, as well as important factors like the project timeline.
- Contract: When reading over your solar installer's contract, ask questions about any terms you're not sure of and make sure you understand what happens in scenarios like a system part breaking or the company going out of business.
- Reputation: Long-standing companies likely have a solid reputation. This is important because it ensures that it will not only see your solar installation through, but will also provide adequate aftercare and customer support, such as part repairs and replacements.
- Solar Panel Brands: Homeowners will have different preferences for panels depending on their locations and how much efficiency they need. While there are many options for which model of solar panel you can get, not every company will have access to the exact one you may want or need, so make sure you take a look at their list of options before deciding.
Best Solar Financing
Blue Raven Solar
- Industry-leading in-house financing
- Competitive pricing
- Excellent reputation
- Doesn't offer solar batteries
EcoWatch's Lexington, VA Solar Cost FAQs
What is the average cost of installing solar panels in Lexington?
This is a difficult question to answer exactly, because the cost depends on a few different factors. Generally speaking, it costs about $13,750 for a 5-kW system and $27,500 for a 10-kW system after the ITC is applied. You can expect to pay more if you want other solar equipment or higher quality panels, or if you have higher-than-average energy consumption. Conversely, you can spend less if you want a smaller solar panel system or less efficient solar panels.
Are solar panels free in Lexington?
A solar panel system isn't free in Lexington, 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.
Can you sell solar power back to the grid in Lexington?
The majority of states offer net metering programs of some kind. Through these, you can receive compensation for the extra power your system generates or or receive credits to put toward future energy bills. Currently there are just three states that don't have any net metering laws: Alabama, Tennessee and South Dakota.
How many solar panels do I need to power my home?
To figure out how many solar panels you need, you should find out how much energy your home needs and how much sunlight your home gets. For a general estimate, however, since each panel can typically 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.