Solar Panel Cost Guide in Madison, SD (2024 Update)
- Madison Solar Installation Cost: $22,116
- 25-Year Savings: $23,410
- Payback Period: 14.5 Years
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Average Cost of Solar Panels in Madison
Find out what the average cost of a solar system is in Madison.
Although the national average of solar panels is $2.66 per watt, solar panels in Madison typically cost around 4.The average Madison homeowner needs a 8.8-kilowatt system, which would cost about $22,116 with the federal tax credit, or $31,626 before the 0 tax credit is applied.
These figures are just averages, and the cost of going solar for you may look different based on your energy needs and what company you choose to go with.But, after you've paid the upfront cost of installation, the payback for most homeowners is quite fruitful, with a net average savings of about $16,000 over 20 years on energy bills.
To see your potential savings and connect with a local solar company, click the button below.
Solar savings over time in Madison
| Year | Return on Investment |
|---|---|
| 1 years | $-20,658 |
| 3 years | $-17,741 |
| 5 years | $-14,824 |
| 7 years | $-11,907 |
| 9 years | $-8,990 |
| 11 years | $-6,073 |
| 13 years | $-3,156 |
| 15 years | $-239 |
| 17 years | $2,678 |
| 19 years | $5,595 |
| 21 years | $8,512 |
| 23 years | $11,429 |
| 25 years | $14,346 |
Top Solar Installers in Madison
Many homeowners opt for a solar installer since trying to install solar panels by yourself can be a lot of work. Solar companies provide key benefits that can help you get the most out of your investment, like warranties, monitoring and free repairs.
Working with a vetted solar installer can help your solar project go smoothly. Here are our recommendations:
See all of the solar companies in Madison
Factors that Affect Solar Panel Costs in Madison
There are several criteria that can determine your installation cost, such as the size of your system, the equipment you choose, your financing options and the specific company that performs the installation.
Solar Equipment
The size of the solar energy system you need to offset your energy usage, which is measured in kilowatts, is the most significant cost factor to consider. For every additional kilowatt you need, you can expect your total to increase by about $3,580. Some solar brands — like Maxeon from SunPower — are more expensive upfront but also tend to offer higher efficiency. In a city like Madison, where sunlight is relatively abundant, efficiency can quickly pay off. Also, if you have a small roof or limited 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
For some homeowners, paying for solar out of pocket can be difficult. Solar loans are available from most installers in Madison, which can bring down, or in some cases eliminate, your upfront costs to make solar more accessible.Even though solar loans make adopting solar energy more accessible for Madison homeowners, they can also add to the total you pay for your system due to interest. If you put down a larger down payment, though, you can avoid paying as much in interest.
Solar Panel Installation Company
A final consideration when trying to evaluate the cost of solar for your home or business in Madison is the company you choose to install your solar system. As with choosing a company to renovate your kitchen, for instance, there are plenty of solar installers that offer a range of services at different costs.Additionally, some companies in Madison know more about local solar incentives and can help you learn about 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 help you save 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 | $3.72 | $15,637 | $10,316 | 15.1 years |
| 8 kW | $3.65 | $20,449 | $14,156 | 14.8 years |
| 10 kW | $3.58 | $25,060 | $18,196 | 14.5 years |
| 12 kW | $3.51 | $29,471 | $22,436 | 14.2 years |
| 14 kW | $3.44 | $33,681 | $26,877 | 13.9 years |
| 16 kW | $3.37 | $37,690 | $31,519 | 13.6 years |
| 18 kW | $3.29 | $41,499 | $36,361 | 13.3 years |
| 20 kW | $3.22 | $45,108 | $41,403 | 13.0 years |
How to Save on Solar Panels
Since the type of solar panels and the installer you choose has an impact on your costs and your system’s efficiency, production, and durability, it’s important to pick the right ones for you. Here are some things to keep in mind to help with your decision:
- Warranty: Warranties that provide coverage for defective panels and repairs over around 25 years are the gold standard in the business, and offering that kind of warranty is one sign of a quality company.
- Installation Process: When going solar, it’s essential to maintain an open line of communication with your solar installer. See to it that you understand how the installation process will go and the project completion timeline.
- Solar Panel Brands: Homeowners will have different preferences for panels depending on their roof configurations and how much efficiency they need. Even though there are many options for which brand of solar panel you can get, not every company will have access to the exact one you may want or need, so be sure to ask for their list of offerings before making your decision.
- Contract: It’s important to read through your solar installer’s contract carefully to understand what services they will provide, what the warranty covers and what you can expect about the project timeline.
EcoWatch's Madison, SD Solar Cost FAQs
How much does it cost to install solar panels in Madison?
This is a difficult question to answer precisely, because the cost depends on a few different factors. Broadly speaking, it costs about $17,900 for a 5-kW system and $35,800 for a 10-kW system after the ITC is applied. It will be more expensive if you want additional solar equipment or higher quality panels, or if you have higher-than-average energy needs. Conversely, you can spend less if you go with a smaller solar panel system or less expensive solar panels.
Is cost the most important consideration when buying solar panels?
Cost is a very important factor to consider, but whether it’s the most important for you depends on why you decided to go solar. In places where rooftop space is limited, efficiency can trump the cost. Other factors that are important to take into account are the quality and durability of your solar panels.
How will installing solar panels impact the value of my home?
Solar panels can increase your home value significantly as long as you buy or finance your panels and don’t opt for a solar lease or power purchase agreement (PPA). According to research done by Zillow, the average home value increases by about 4.1% after installing a solar system."
How many solar panels do I need to power my home?
To figure out what solar panel system size you need, you should find out how much energy your home uses 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 house 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.