Solar companies in Salt Lake City and other parts of Utah may charge $16,356 for 6,000-watt solar system installation. As of May, this is the average cost after you claim a federal tax incentive.
It would originally cost $23,366 for the same system installation. Homeowners could spend $12,565 for a 4,000-watt system, which already excluded the 30% rebate. Roofing space should be at least 267 square feet for this size, while 400 square feet is the requirement for a 6,000-watt system. If you plan to install a 5,000-watt system, you should expect to spend $14,680 after the tax rebate and have a 333-square-foot roof space.
Average Prices per County
Based on the after-incentive price of a 5,000-watt system, homeowners in Salt Lake could spend almost $13,000 for an average installation. The median price in Utah County costs around $11,950, which is among the cheapest in the state. Residents in Summit County and Washington County would spend more than other homeowners in most states. Average prices in these counties cost more than $15,000.
As Utah offers a state tax rebate of $1,600, it is possible to spend lower than these figures. Take advantage of these tax credits especially the Solar Investment Tax Credit. By next year, the federal government will reduce the applicable rebate to 26%. If you do not have cash on hand to pay for an installation, you may take out a loan specifically for buying solar panel systems.
How to Finance a Purchase
Interest rates for an unsecured solar panel loan range between 10% and 32%. The actual rate will depend on your credit score, debt history, and income capacity. This is not the best choice since there are secured loans that are offered exclusively for financing a system installation. You only have to make sure that you pay off the loan to avoid repossession of the solar panels.
You should aim for a custom loan with a shorter term such as a one- or two-year repayment term. The monthly installments will be higher than a 10-year repayment term, but the total interest will be cheaper than the latter.
Alternative Financing Options
If you do not like to apply for a loan, an alternative financing option involves the Property Assessed Clean Energy (PACE) program. This works by letting the local or state government pay for the cost of a residential solar energy system.
Homeowners who choose this option usually repay the amount as an added expense on their property tax bills. The duration ranges between 10 and 20 years with interest rates starting at 3%. Another option involves your credit card, especially when your bank has an ongoing rebate program for home improvements or when they offer cards with an introductory 0% APR for big-ticket purchases.
Homeowners should consider purchasing their own solar panel system to qualify for the federal and state tax incentives. It is better to hire a licensed solar contractor to install the system, due to its complexity and the safety risk of working atop a roof.