Solar Power Costs

calculator showing solar power costsThe total cost of a fully installed PV system depends on a number of factors. System size plays the largest role in determining solar power costs, but equipment brand and ease of installation will also impact the bottom line. In general, a typical system of 8.8kW (which can offset around $180 per month of your electric bill) will cost between $3.00 – $4.00 per watt.  However, once you factor in the rebates and tax credits, the cost drops down to approximately $1.75 – $2.25 per watt. Although this is a significant investment, don’t let the “sticker shock” scare you away. Compared to paying electric bills for the next 30+ years, it is one of the best investments you can make (please visit our Solar Payback and Financials page for details).  Also note, these figures and the tables below factor in the cost of financing the system so there is no money down.

Average Solar Power Costs

Typical System of 8,820 Watts

Total System Cost (parts and installation)   $30,735
LIPA Rebate (covered by Horizon Solar) – $1,764
Customer’s Gross Cost:   $28,971
State Tax Credit (25% system costs, $5,000 max.) – $5,000
Federal Tax Credit (30% system costs, no maximum) – $8,691
Net Cost after rebate & tax credits:   $15,280

Average Production and Financial Benefits

Typical System of 8,820 Watts

Annual Production 11,050 kWh
Annual Savings $2,166
Payback Period (Break-Even Point)* 7.1 years
Annual Rate of Return* 21.7%
Direct Savings over Life of System* $103,000
Home Value Increase $20,400

* See the Solar-Payback-and-Financials page for details