In 2023, the typical price for a home solar system is approximately $20,650. Nevertheless, the actual cost of installing solar can vary significantly, influenced by a multitude of factors. These include your geographical location, the system’s size, the provider chosen, and any applicable incentives.

To put it plainly, solar panels capture sunlight and transform it into a form of electricity that we can use. However, during nighttime or in poor light conditions, these panels cannot generate power due to the absence of sunlight. In these instances, if there’s a battery bank attached to the system, stored energy can be used to run your appliances or devices.

On the other hand, if your solar panel system is linked to the electricity grid, surplus power produced during daytime can be contributed back to the grid. Through a process known as net metering, this surplus energy is credited to your account. During the night, your system can pull electricity from the grid to operate appliances and devices in your home.

The federal solar investment tax credit (ITC) enables you to cut down your overall solar installation expenses by as much as 30%. This tax credit is directly applied to your federal income tax obligation, representing an equivalent reduction in the taxes you would have otherwise had to pay. For instance, if the cost of your new system is $18,000, the solar ITC could potentially allow for a tax credit up to $5,400 on your federal income tax.