As the leading solar company in Oregon and Washington, Unity Solar is dedicated to providing clear, concise, and up-to-date information about solar energy. One of the most frequent questions we receive is about the average cost of solar panels and installation. This blog post will break down these costs, using reliable data from sources like Forbes and other reputable sites, and explain the various incentives available to Oregon residents.

Understanding the Costs

The cost of installing solar panels can vary based on several factors, including the size of the system, the type of panels, and the specific installation requirements of your home or business. According to Forbes, the average cost for solar panels in Oregon is approximately $3 per watt. For a typical 6-kilowatt (kW) system, this translates to about $18,000 before any incentives or rebates.

Cost Breakdown

1. Solar Panels: The panels themselves are the most significant cost component. High-efficiency panels might cost more upfront but can save more in the long run.
2. Inverters: Converting solar energy from DC to AC power requires inverters, which can cost around $1,000 to $2,000.
3. Mounting Hardware: The structure that holds the panels in place typically costs between $500 and $1,000.
4. Labor: Professional installation is crucial for system efficiency and safety, generally costing between $5,000 and $10,000.
5. Permits and Inspection Fees: These can add another $500 to $1,000 to the total cost.

Incentives and Rebates

Fortunately, various incentives significantly reduce the out-of-pocket cost for solar panel installation in Oregon.

1. Federal Solar Investment Tax Credit (ITC): This credit allows you to deduct 26% of the cost of installing a solar energy system from your federal taxes. For a $18,000 system, this could mean a reduction of approximately $4,680, bringing the cost down to $13,320.
2. Oregon Solar + Storage Rebate Program: This state-specific program offers rebates for residential solar installations, providing up to $5,000 for a solar system and an additional $2,500 for a storage system. These rebates can make a significant dent in the initial investment.
3. Energy Trust of Oregon Incentives: As a customer of Portland General Electric or Pacific Power, you may qualify for additional cash incentives from the Energy Trust of Oregon, which can be up to $4,000 for a typical residential installation.
4. Net Metering: This allows homeowners to sell excess energy back to the grid, further offsetting costs by reducing monthly utility bills.

Financial Impact and Savings

Investing in solar panels not only helps reduce carbon footprint but also offers substantial long-term financial benefits. With the average household saving between $600 and $1,000 per year on electricity bills, a solar system can pay for itself in 10 to 12 years. After this payback period, you effectively receive free electricity for the lifespan of the system, which can be 25 years or more.

Financing Options

Unity Solar understands that the initial cost can be a barrier for some homeowners. We offer several financing options to make solar power more accessible:

1. Solar Loans: These allow you to finance your solar system with low-interest rates and flexible terms.
2. Leasing Programs: Under a solar lease, you can enjoy the benefits of solar energy without the upfront costs. Instead, you pay a monthly fee to use the system.
3. Power Purchase Agreements (PPA): With a PPA, you pay only for the electricity generated by the system, typically at a lower rate than your current utility price.

Conclusion

Switching to solar power in Oregon is a financially sound decision, supported by substantial incentives and rebates. At Unity Solar, we are committed to helping you navigate these options and find the best solution for your energy needs. By investing in solar, you not only reduce your environmental impact but also gain energy independence and significant long-term savings.

For more information or to get a personalized quote, contact Unity Solar today. Let us help you harness the power of the sun and secure a brighter, more sustainable future.