As a renewable energy expert with extensive experience in the field of solar panel installations, I can provide a detailed analysis of the cost factors involved in installing solar panels. The cost of installing solar panels can vary greatly depending on a multitude of factors, including the size of the system, the type of panels, the location, and the installation process itself.

Firstly, the size of the system is a critical determinant of the cost. The average household in the U.S. might opt for a 6 kW system, which is a common size for residential installations. However, the exact size needed will depend on the household's energy consumption and available roof space.

The type of solar panels also plays a significant role in the overall cost. There are various types of solar panels available in the market, such as monocrystalline, polycrystalline, and thin-film panels. Monocrystalline panels are typically the most efficient and therefore the most expensive, while thin-film panels are generally the least expensive but also the least efficient.

Location is another factor that can influence the cost. Some regions may have higher labor costs, while others might offer more favorable incentives for solar installations, which can lower the overall cost.

The installation process itself can also add to the cost. This includes the physical installation of the panels, the electrical work required to connect the system to the home's power supply, and any necessary permits or inspections.

In 2018, the average cost per watt for solar panel installation was between $2.71 and $3.57. Considering the average system size of 6 kW, the gross cost before tax credits would be around $18,840. After applying the tax credits, which can significantly reduce the cost, the range would be between $11,380 and $14,990.

It's important to note that these figures are averages and the actual cost can be lower or higher depending on the specific circumstances of the installation. Additionally, the cost of solar panels has been decreasing over the years due to advancements in technology and increased competition in the market.

Moreover, there are other financial considerations such as the potential for savings on energy bills, the resale value of the home, and the environmental benefits of using clean energy. These factors can contribute to the long-term value of the investment in solar panels.

When considering the installation of solar panels, it's advisable to get quotes from multiple installers to compare costs and services. Also, understanding the local incentives and rebates available can help in making an informed decision.

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At the time of this writing, the installed cost of solar panels was between $7-$9 per watt: A 5 kW system would cost around $25,000-$35,000. Many utility companies offer incentives, and some subsidize as much as 50% of system costs.read more >>