Solar Panel Cost Guide in Philadelphia, PA (2024 Update)
- Philadelphia Solar Installation Cost: $16,250
- 25-Year Savings: $14,973
- Payback Period: 15.2 Years
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Average Cost of Solar Panels in Philadelphia
Let’s have a look at the average cost of solar in Philadelphia.
Currently, the national average cost of solar panels is $2.66 per watt. However, in Philadelphia, the average cost of solar panels is 4 per watt.Using this figure, a typical 6.5-kW system would cost about $16,250 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 consumption, the type of solar panels you want to get, your solar contractor and more.With typical savings of about $15,000 on utility bills over 20 years, many homeowners in Philadelphia find investing in solar can pay off big.
To see your potential ROI and connect with a local solar company, click the button below.
Solar savings over time in Philadelphia
| Year | Return on Investment |
|---|---|
| 1 years | $-14,960 |
| 3 years | $-12,379 |
| 5 years | $-9,799 |
| 7 years | $-7,218 |
| 9 years | $-4,638 |
| 11 years | $-2,057 |
| 13 years | $523 |
| 15 years | $3,104 |
| 17 years | $5,684 |
| 19 years | $8,265 |
| 21 years | $10,845 |
| 23 years | $13,426 |
| 25 years | $16,007 |
Top Solar Installers in Philadelphia
DIY solar panel installation is a way to cut costs, but it's an undertaking that can take a lot of hard work. Using a solar company can make your switch to solar power much easier. A solar company can also help save you money over time by providing warranties, repairs and component replacements.
If you're searching for a solar installer in Philadelphia, the EcoWatch team has compiled a list of our top suggestions here:
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 Philadelphia
Factors that Affect Solar Panel Costs in Philadelphia
Cost is usually one of the most important factors for homeowners wanting to invest in solar. There are a few key factors that will push your cost above or below the average in Philadelphia: solar equipment and system size, financing options and the solar installation company you choose. We’ll go over each of these briefly below.
Solar Equipment
Solar system size, which is measured in kilowatts, is one of the largest factors that influences the overall cost of installing solar panels. That’s why it’s a priority to accurately gauge the size of the solar energy system needed for your home by figuring out your typical energy use.Some solar panel brands — like Maxeon from SunPower — cost more upfront but also tend to offer higher efficiency. In a city like Philadelphia, where sunlight is relatively abundant, efficiency can quickly pay off. Plus, if you have a small roof or limited 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
Most solar companies in Philadelphia offer solar loans, which reduce your upfront costs of installing solar.You’ll have to consider the long-term cost of loans, 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 principal cost. Making a larger down payment or getting a solar loan with a low interest rate could reduce your costs remarkably.
Solar Panel Installation Company
The remaining major cost factor you should keep in mind is the installer you choose. Given the booming popularity of clean energy solutions in Philadelphia, you’ll have lots of options to choose from, but each comes at various price points for labor and equipment.Additionally, some companies in Philadelphia know more 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 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 | $3.69 | $15,506 | $8,941 | 15.9 years |
| 8 kW | $3.62 | $20,278 | $12,319 | 15.6 years |
| 10 kW | $3.55 | $24,850 | $15,896 | 15.2 years |
| 12 kW | $3.48 | $29,224 | $19,672 | 14.9 years |
| 14 kW | $3.41 | $33,398 | $23,646 | 14.6 years |
| 16 kW | $3.34 | $37,374 | $27,819 | 14.3 years |
| 18 kW | $3.27 | $41,152 | $32,191 | 14.0 years |
| 20 kW | $3.19 | $44,730 | $36,762 | 13.7 years |
How to Save on Solar Panels
There are many solar installers to choose from, all of which offer different warranties, solar panel models and price points. To help you pick the right company for you, here are some tips to keep in mind:
- Reputation: Make sure your solar company has a good reputation by verifying it has certifications and licenses, checking its number of years in business and reading reviews by past customers and solar experts like EcoWatch.
- Warranty: A high-quality company stands out from other companies by offering the gold standard warranty — a 25-year, all-inclusive warranty covering parts, labor and performance.
- Installation Process: When making the switch to solar, it’s necessary to keep an open line of communication with your solar panel installer. See to it that you understand how the installation process will go and the project completion timeline.
- Contract: When reading through 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 component breaking or the company going out of business.
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 Philadelphia, PA Solar Cost FAQs
What is the average cost of installing solar panels in Philadelphia?
This is a hard question to answer exactly, because the cost depends on a variety of factors. Generally speaking, it costs about $17,750 for a 5-kW system and $35,500 for a 10-kW system after the ITC is applied. You can expect to pay more if you want other solar equipment or more efficient panels, or if you have higher-than-average energy consumption. On the other hand, you can spend less if you go with a smaller solar panel system or less efficient solar panels.
Are solar panels free in Philadelphia?
You can’t get solar panels for free in Philadelphia. However, you may still be able to get them on a lower budget. You can lease solar panels for a low upfront cost or, if you’d rather own your solar panels, you can finance them with a solar loan.
How much can I save on power bills after switching to solar?
Solar panels can potentially eliminate your electricity bills depending on where you’re located and the efficiency of your system. Even if it doesn’t get rid of them completely, you can save a lot of money on your bills, about $814.92 per year.
What solar power system size is right for 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 get 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.