When someone asks us this question, they’re most often looking for a quick ballpark number. The problem is that the answer depends on so many factors and the price can vary greatly according to the situation.
The most important answer is this: if you’ve got a good location for solar, the cost of a solar system will always be much less expensive than what you are paying your utility company over time. Many of the quotes we provide show that homeowners would be saving $70,000 to $120,000 in utility costs over the life of the system. We are committed to making sure this is a good investment that works for our customers, so we give you the most accurate estimates we can to help you make a decision.
The cost of a project depends on its size, your energy needs, and the equipment we choose according to your preferences and budget. We offer reliable standard efficiency panels as well as the highest performing panels on the market, and our price range reflects those options.
Very broadly speaking, our residential systems for purchase generally start around $15K for a small system using standard equipment and can reach $50K or more for larger systems using the best equipment. These figures would be reduced when considering financial incentives such as the 30% tax credit and SREC income.
Keep in mind the price we give you includes installation and all other equipment and labor costs, not to mention the administrative work and post-install troubleshooting. The price we give you in the contract will be the price you pay: no hidden costs, no extra charges, no surprises.
We walk through every detail of this pricing when you request a quote, so don’t hesitate to contact us to get a much better idea of what your system would cost.
Over time, your solar installation will definitely be cheaper than your utility!
Once your solar is installed, your panels will provide for your energy needs. You will no longer be dependent on the utility company’s power and subject to their steadily increasing rates.
Let’s use a recent customer example to compare the cost. These are numbers from an actual quote we sent:
– A $40,000 installation costs $28,000 after the current federal tax credit.
– This customer’s installation will cover the home’s full energy needs producing 12,500 kWh per year.
– At that usage rate, we estimate this person would pay more than $89,000 over 30 years to the utility!
You decide:
paying $28,000 to produce your own energy with solar OR
paying the utility $89,000 for theirs.
This customer chose to go solar! Their net savings will be $61,000 over 30 years. There are some customers who save even more than that, others who save a bit less. Your savings depend on your circumstances, and we outline these savings in our consultations and system quotes. Request a quote to find out how much you would save.
Even though you’re producing your own energy with solar, the utility company still serves a purpose. The majority of installations are “grid-tied” meaning you are still connected to the utility’s network and your power is tracked through “net-metering.”
In the evenings when your panels are not producing power, you’ll use electricity from the utility, and your meter will count your use normally. But on a sunny day, you’ll produce even more than you’re using. This power will be fed to the utility’s grid, you will receive credits for the power that is being shared with others, and your meter will start spinning backwards! (Well, meters are digital these days, so that’s actually become a figurative expression…)
This is called net-metering because you will then pay for your net-use, the balance of what you’ve used minus what you’ve produced. As long as you aren’t using more than you’re producing, you will not be charged for electricity, and may even end up with a credit for the month.
Your utility company will still process a minimum customer charge for the services they provide; this fee will remain on your monthly bill, typically between $8 and $14.
Yes. Most utilities will pay you for the excess energy your system produced but that your home did not consume, and this typically happens after a year of use. Each month, your excess energy is giving you a credit going toward your use in following months. If you still end up with a credit at the end of a year, you are then paid for that excess energy that you supplied to the grid.
During the year the energy you produce is worth exactly what you pay for it, but when your utility pays for the annual excess, they pay you based on a lower wholesale rate. You could equate this to the generation charge on your bill. Be aware then, that you are paid a smaller amount for this excess, and it is usually not a worthwhile investment to install extra panels just to make extra money.
These policies vary among utility companies, so consider verifying the arrangements with yours for a more specific answer.
If you purchase your system, this “payback time” depends entirely on the size and cost of your system and the amount of your utility rates.
In New Jersey and New York, average payback times we see are between 5 and 6 years. In Pennsylvania, average payback times are between 7 and 12 years. Considering the average life of a solar installation is 30 years, these payback times mean you’ll have 20 to 25 years of paying $0 for your electricity.
When we estimate these payback times, total savings, and return on investment, we take into consideration a 3% annual increase of utility rates over the next 30 years, because historic figures have actually been higher, showing a 5% increase over time.
Contact us to see what payback time could look like for you.
For the most broad and up to date information, we recommend you check out the Database of State Incentives for Renewables & Efficiency. Find the appropriate website here: Pennsylvania, New Jersey, New York, then filter your search results for Solar Photovoltaics.
The US government currently offers a 30% federal tax credit: for any solar PV system installed, you receive 30% of its cost as a dollar for dollar credit on the taxes you owe. This is currently scheduled to last through 2019, with decreased credits scheduled through 2021. This helps to make a solar install considerably more affordable. Visit this page at energy.gov for more information and talk with a tax professional to learn how this incentive can best help you.
SREC stands for Solar Renewable Energy Credit, and these credits are something you automatically accumulate as your system produces power. The value of these credits fluctuates depending on supply and demand in your state, but selling them earns you extra income. If you’re curious and financially minded, visit the GATS site to learn a bit more; otherwise we recommend using an aggregator to manage selling SRECs for you.
Tax credits and SRECs are the primary incentives currently offered that we focus on with our customers, but don’t hesitate to research other rebates, grants, or discounts that may be available in your state, locally, or even with your employer.
SRECs stand for Solar Renewable Energy Credits, also called Alternative Energy Credits (AECs) in Pennsylvania. For the energy your system produces, you receive a credit that has a certain value and can be sold or traded on the SREC market. For every 1,000 kWh your system produces in its lifetime, you receive 1 SREC. The value of SRECs fluctuates greatly depending on supply and demand, but selling them earns you extra income. These earnings are an added financial incentive beyond what you are saving in utility costs.
Currently, the SREC market is much stronger in NJ than in PA, making an installation an even more appealing investment for those living in the Garden State.
After installation, you can register yourself to sell and manage your SRECs, but we advise most of our customers to use a broker or an aggregator who will manage this investment for you. We will help you in this process when your system is turned on.
Estimated SREC earnings are shown on each of our quotes. Request a quote to find out more specifically how this could benefit you.
To quote our 8th grade science teacher: “TANSTAAFL: There ain’t no such thing as a free lunch.”
Free solar is a marketing concept some companies use implying a no-cost installation, typically in a lease or PPA contract. But the truth is the customer is paying for the installation and its power over time, and often at a greater long-term cost. Sounds good, but it’s not free. (Think of it as a car dealership telling you they were giving you a free car but were simply charging you a monthly fee for the miles it drove you.)
That being said, Evoke does offer a variety of zero-down financing options, meaning you could go solar with no up-front expense and pay for the system over a short or long term period using a Lease or Loan. See the following questions for more details.
We are proud to offer the best lease option on the market. Currently, this is only available in New Jersey.
It is a SunPower lease with extremely low cost and the best equipment available. You pay nothing up front and agree to a fixed monthly payment with no escalator for the life of the agreement, saving you 30-60% on utility bills.
Power your home with clean, renewable energy while saving money, without the burden of an upfront investment and free from the concern of unforeseen system maintenance.
Contact us for more information on this lease program.
Yes, Evoke can arrange residential loans ranging from $15,000-$100,000 with reasonable interest rates, contingent on credit approvals.
Our customers have found a variety of their own financing solutions to best suit their needs. Before purchasing a system, we encourage you to inquire with your local bank or credit union for the best rate possible.
