Solar Panel Cost Guide in Salem, NJ (2024 Update)
- Salem Solar Installation Cost: $11,411
- 25-Year Savings: $13,806
- Payback Period: 12.5 Years
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Average Cost of Solar Panels in Salem
Find out what the average cost of a solar system is in Salem.
The national average cost of solar panels is $2.66 per watt, but in Salem it’s 4 per watt.The average solar panel system size in Salem is around 4.6 kilowatts, meaning a cost of about $11,411 for a solar installation, or $16,318 before the 0 federal solar tax credit is applied.
Keep in mind that the numbers above are only averages. The price you’ll end up paying for solar may vary based on your household energy needs, the type of solar panels you want, your solar contractor and more.Despite the high upfront cost, the average Salem homeowner can save about $19,000 on their energy bills over 20 years, which is one of the advantages of solar.
Click the button below to get connected to a reputable solar installer in your area for a personalized estimate.
Solar savings over time in Salem
| Year | Return on Investment |
|---|---|
| 1 years | $-9,913 |
| 3 years | $-6,917 |
| 5 years | $-3,920 |
| 7 years | $-924 |
| 9 years | $2,073 |
| 11 years | $5,069 |
| 13 years | $8,065 |
| 15 years | $11,062 |
| 17 years | $14,058 |
| 19 years | $17,054 |
| 21 years | $20,051 |
| 23 years | $23,047 |
| 25 years | $26,044 |
Top Solar Installers in Salem
DIY solar panel installation is a way to cut costs, but it's an undertaking that can use up a lot of your time and energy. Hiring a solar panel installer can make switching to solar power much easier. The expertise that solar companies provide can be helpful as well, especially if you don’t quite know what kind of solar equipment you need.
Working with a licensed solar company can make going solar easier. Here are our recommendations:
Best National Provider
SunPower
- Most efficient panels on the market
- National coverage
- Cradle to Cradle sustainability certification
- Great warranty coverage
- Expensive
- Customer service varies by local dealer
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
Best for Leasing
Sunrun
- Expansive service area
- Many financing options
- Some reported issues with customer service
- Some reported issues with door-to-door sales
See all of the solar companies in Salem
Factors that Affect Solar Panel Costs in Salem
There are a number of factors that can determine 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
System size, which is measured in kilowatts, is one of the largest factors that influences the overall cost of going solar. For that reason, it’s important to accurately gauge the size of the solar energy system needed for your home by figuring out your average energy use.Some solar panel brands — like Maxeon from SunPower — are more costly upfront but also tend to offer higher efficiency. In a city like Salem, where sunlight is relatively abundant, efficiency can quickly pay off. Plus, if you have a small roof or you don’t have a lot of 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
Many homeowners find the average cost of solar in Salem to be prohibitively expensive, even if the investment pays off over time. Thankfully, nearly every solar company in the area offers financing options. Solar loans remarkably decrease upfront costs in most cases, but they also result in paying more over time because of interest.Even though solar loans make adopting solar energy more accessible for Salem homeowners, they can also add to the total you pay for your system, depending on your interest rate and how long you take to pay off the loan. If you put down a larger down payment, though, you can cut back on how much interest you have to pay.
Solar Panel Installation Company
The solar installer you pick will affect your total cost to go solar. Different companies will bill different amounts for the equipment and labor.Companies that only sell high-quality, high-efficiency and high-price products — like Maxeon solar panels from SunPower or Tesla Powerwall batteries — so choosing those installers will generally come at a higher cost. It’s best to do some research and choose a company that provides the products, warranties and services you want and also is within your budget.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $3.67 | $15,419 | $14,153 | 13.0 years |
| 8 kW | $3.60 | $20,163 | $19,266 | 12.8 years |
| 10 kW | $3.53 | $24,710 | $24,576 | 12.5 years |
| 12 kW | $3.46 | $29,059 | $30,085 | 12.3 years |
| 14 kW | $3.39 | $33,210 | $35,791 | 12.0 years |
| 16 kW | $3.32 | $37,164 | $41,694 | 11.8 years |
| 18 kW | $3.25 | $40,920 | $47,796 | 11.5 years |
| 20 kW | $3.18 | $44,478 | $54,095 | 11.3 years |
How to Save on Solar Panels
Since the kind of solar panels and the installation company you choose has an impact on your costs and your system’s efficiency, production, and durability, it’s important to select the right ones for you. Here are some things to keep in mind to help with your decision:
- Warranty: Warranties that cover panel repairs and maintenance over a couple decades are the best you can get in the business, and offering such a warranty is one sign of a good company.
- Contract: Though reading through a contract can take a lot of time, it’s important to do it carefully so you can be sure you understand what services your solar company will provide and the terms of the warranty.
- Reputation: Solar system installers that have great reviews from their customers and that have been operating for many years in most cases provide high-quality solar panel installation and expertise.
- Installation Process: Get details from your solar company about the installation process and what to expect, including when the site survey will be done and what the project timeline is.
Best National Provider
SunPower
- Most efficient panels on the market
- National coverage
- Cradle to Cradle sustainability certification
- Great warranty coverage
- Expensive
- Customer service varies by local dealer
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
Best for Leasing
Sunrun
- Expansive service area
- Many financing options
- Some reported issues with customer service
- Some reported issues with door-to-door sales
EcoWatch's Salem, NJ Solar Cost FAQs
What is the average cost of installing solar panels in Salem?
This is a difficult question to answer precisely, because the cost depends on many factors. Broadly speaking, it costs about $17,650 for a 5-kW system and $35,300 for a 10-kW system after the ITC is applied. It will cost more if you want other solar equipment or higher quality panels, or if you have above-average energy consumption. On the flip side, you can spend less if you want a smaller solar panel system or less expensive solar panels.
Can you get solar panels for free in Salem?
You can’t get solar panels for free in Salem. However, you may still be able to afford them on a lower budget. You can lease solar panels for a low upfront cost or, if you’d prefer to own your solar panels, you can finance them with a solar loan.
Can you sell solar power back to the grid in Salem?
Each state has some kind of net metering programs except Tennessee, South Dakota and Alabama currently. Some states allow you to sell power back to the grid, but others just give you credit toward your future utility bills.
How long do solar panels last in Salem?
On average, the lifespan of solar panels is about 25 to 30 years. Some even last up to 50 years, but their efficiency goes down by about 0.8% each year. You can choose to replace them sooner if you want to maintain a larger amount of energy production.
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.