Every solar power system is custom-designed to fit the home it is installed on. The amount of power the system produces is also designed to meet the needs of the household it serves. There can also be incentives that can offset the cost of going solar. These and other reasons are why pricing solar is so complex.
Pricing solar is like having an addition to your home. When you add on to your home, an architect designs the addition and the builder builds it according to that design. Because they base their design on your home’s existing structure, the resulting design for your addition is unique to your home
Solar energy is priced to fit your expectations
Another factor that goes into pricing solar is the amount of energy you need the system to produce. Your energy needs are determined using your electric bill. Solar systems are usually designed to produce as much power as they are allowed to. The maximum amount of power your system is allowed to produce is usually set by your local utility company. For example, San Diego Gas and Electric allows you to generate up to 115% of your highest monthly electrical usage.
The amount of power you need the system to produce will determine how many solar panels are needed to build the system. Solar panels themselves are priced according to the amount of power they produce. So the number of panels that will be needed to build your system will be based on the amount of power you need and the solar panels that are chosen to build your system with.
Some states may have exceptions in terms of pricing
Incentives that can offset the price of going solar vary by state and even by utility company. You can look up solar incentives that are in your area by visiting DSIRE (Database of State Incentives for Renewable Energy). It lists by state and by utility the available rebates, incentives and other programs that can help you save money by going solar. In some states, it may be permitted to sell RECs. RECs are created when renewable energy generation, including solar panels, generate electricity, but RECs are not the electricity itself. Instead, RECs represent the environmental attributes of that electricity.