The average American pays $137 in electricity bills every month. That adds up to nearly $1,700 every year. But one look at unprecedented rate increases all over the country will tell you that residential electricity prices are rising every year—2022 registered a 10.7% increase, the highest since the 2000s. And prices are predicted to increase by another 4% this year.
Electricity is going to cost more and more in the coming years. And with many people still spending a lot of time at home due to remote or hybrid work, and you have to contend with a much higher cost of living.
Thankfully, there’s a way out. You can cut down on your electricity bills and minimize your household’s dependence on the local grid by switching to solar. A 15kW solar array can be the system you need to meet your home’s energy requirements.
How much does a 15kW system cost? This guide outlines all you need to know.
The Cost of Going Solar
A typical rooftop solar unit costs around $2.5 to $5 per watt without factoring in the universal federal tax credit and other solar rebates. This means you could end up spending $37,500 to $75,000 on a 15kW solar arrangement. And when you subtract the 26% federal tax credit, you’ll still be out $27,270 to $55,500.
That’s a lot of money.
Solar may lead to a ton of benefits, and you can take advantage of local rebates and robust financing options, but the switch certainly won’t be cheap. And the cost of going solar can be challenging to calculate—various factors must be considered.
The exact amount you will spend on a 15kW system depends on the following:
Solar Manufacturer
SunPower, Sunrun, Jinko Solar, Hanhwa QCells, Tesla, Silfab Solar—many solar manufacturers sell products in the US. Some of these brands are US-based, while others manufacture their products overseas and export them.
So, the price of a 15kW solar arrangement varies from brand to brand, depending on their technology, manufacturing units, and other such elements.
While a standard rooftop SunPower solar panel is around $4.50 per watt, some of Tesla’s economical models cost only $2.44 per watt. There are entry-level models and more advanced ones with higher efficiency.
Remember that price is not the sole indicator of the quality of the products. Learn about the features and look up customer reviews before zeroing in on the best model for your home.
Place of Purchase
Another factor that directly impacts the cost of a 15kW solar system is the place of purchase. You might think buying directly from the manufacturer of your choice is the best option, but that may not always be the case. You could secure a better deal if you purchase solar panels from local suppliers that are certified dealers.
Such suppliers could get you the best and the most affordable prices on solar panels from top manufacturers.
You could also turn to your neighborhood’s solar cooperatives. They invite bids from top solar dealers, so you can get a very affordable deal.
That said, you might be able to secure great EMI deals if you buy directly from a solar manufacturer’s website.
The wisest way to go about making the most of your 15kW solar investment is to compare the costs and features of the solar panel models of your choice.
Solar Discounts
The federal and state governments offer a plethora of tax discounts and rebates to promote the adoption of solar.
You should certainly avail of the Energy Efficient Home Improvement Credit that the Biden-led federal government introduced in 2022. Under this, you could secure a 26% to 30% tax rebate on your solar purchase.
Several states also offer exemptions on property and sales tax on the purchase of solar panels.
These discounts can help you save on the upfront costs of purchasing and installing a solar system.
In addition, you can apply for grants and subsidized loans based on your yearly income and other factors. There are plenty of financial assistance programs on offer. Do your research to find the options that you may qualify for.
Soft Costs
Going solar involves more than just buying solar panels. You also need to consider additional expenses that come in the wake of a solar installation. This includes roof repairs, labor charges, and installation fees that you might need to pay the local government.
On average, miscellaneous solar installation charges amount to 10% of the cost of the solar arrangement. It’s best to get a thorough roof inspection before starting the solar installation process. The structure may need repairs so it can handle a solar array.
If you have a very steep roof that makes solar installation significantly more risky and complicated for professional installers, you will likely have to pay more in labor charges and professional fees.
As for local permits, you must know most state governments require a permit before you can make major changes to your home, including installing a solar panel system. The cost of the permit varies per location, but it may run up to a few hundred dollars.
When you consider all of these costly factors that influence the amount you will spend on a 15kW system, you might wonder if you really need to get one. After all, a standard 5 to 7kW solar system can help you offset some of your energy consumption, too, and will cost a lot less.
Do You Really Need a 15kW Solar Array?
If you have above-average electricity consumption of more than 30kWh in a day, it’s a wise decision to go for a 15kW solar system. It will produce enough energy to meet your daytime needs, and when coupled with a solar battery, it can power your home at night, too.
So you can go off the grid and save on utility bills every month.
How is this possible?
A 15kW solar array can produce 15kWh of power in one hour when installed at a full tilt angle, and solar irradiance is 1 kW/square meter. So, even if it gets 2 to 3 hours of sunlight every day, it can easily produce 30 to 45kWh of energy, which is more than enough to meet the energy needs of even high-consumption homes.
With a 15kW solar system, you will always have a surplus. And even on cloudy days, it can still generate enough to meet your everyday needs without the fear of running out.
And the less reliant you are on your utility provider, the better it is for your household.
Ever-changing net metering laws, ever-increasing electricity rates, and the global energy crisis have contributed to a significantly high cost of living. While other factors like real estate and healthcare might not be in your control, household energy consumption can be optimized—and it should be solar.
Latest Trends and Savings in 2024: In 2024, the solar industry has continued to evolve with more efficient technologies and competitive pricing. The cost of a 15 kW solar system is influenced by several factors including advancements in photovoltaic technology, increased competition among solar providers, and regional incentives. This year, many homeowners are seeing additional savings thanks to updated federal tax credits and local rebates that significantly offset installation costs. Additionally, improvements in solar battery storage options are enhancing the overall value of solar systems, allowing for better energy management and increased savings on electricity bills. For those considering a 15 kW solar system, it’s a great time to invest in solar energy and reap the long-term benefits.
The Takeaway
Consult a trustworthy solar expert regarding your residential energy needs and find out everything there is to it before purchasing solar panels. Understanding your consumption pattern is crucial to finding the right solar solution so you can budget your investment and futureproof your home.
Do your research before going solar. Once you do, the savings you make may surprise you.
Authored by Ryan Douglas
NRG Clean Power's resident writer and solar enthusiast, Ryan Douglas covers all things related to the clean energy industry.
