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Key Points
- Solar panel installation times vary by solar company and system size.
- Installation of the panels and physical components may take between eight hours and a week.
- The labor costs of installing solar panels account for about 7% of the total.
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Solar panel installation
As homeowners search for ways to reduce electricity bills, residential solar panels have gained popularity in the last decade. In 2022, there were six gigawatts of new solar panel installations, a 40% increase from the previous year, and enough solar energy to power nearly five million homes. Installation accounts for a portion of the cost of solar panels, so finding the right solar installation company that fits your budget is essential.
Curious about solar panel installation? This SaveOnEnergy guide walks you through the costs, planning, and installation process for adding solar to your home. We also provide tips if you’re interested in taking a do-it-yourself approach.
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Steps in solar panel installation
Before you sign your solar contract, the solar installer will set up a time to visit your home and evaluate your roof’s size, condition, angle, and amount of shade. From there, the installer will recommend the right system size and generating capacity for your home. Many companies provide a digital design to show how the panels will look on your roof. Discuss your energy goals and ask the solar installer any questions you have, including placement.
After you find a good solar company for you, review the terms, price, and warranty before yousign the contract. The solar company will handle applying for the proper permits and other necessary approvals.
Next, you will schedule an onsite engineering consultation with a solar technician. The technician will come to your home, assess the structural integrity of your roof, and evaluate whether your roofing or electrical panel needs any maintenance before installation can begin. Any roof repairs must be completed before installing solar panels.
Your solar installation company will discuss a suggested system design for the best panel options, placement, and system size. Once you have reached an agreement, the solar panel company will provide a final estimate for the solar system, including all installation costs. If you agree to this estimate, you can schedule a time for installation.
The solar installer will begin by preparing your home’s roof for the panels and connecting the wiring that runs between your electrical panel and the larger power system. After this, the installer will put in the racking (a piece that supports the panels), connect the solar panels, and install the inverter, which converts direct current energy into alternating current energy (the kind that powers your home). Depending on your chosen installer and the necessary work involved, the installation process may be completed as quickly as eight hours or up to a week. Electrical work, such as panel upgrades, may increase the install timeline closer to the one week mark.
Once the solar installation is complete, a representative from your local government will inspect the system to make sure the wiring and installation was done correctly. After they approve, your solar system is ready for grid interconnection. A representative from your energy company will schedule a time to inspect your system and, if approved, connect it to the grid for you. Keep in mind the physcial connection takes place during install. PTO is the formal activation of your solar system within the utility technical infrastructure. From there, your solar panels will generate electricity and power your home.
The last step is to submit documentation of your system to fully benefit from tax credits or incentives available in your area. Read our guide to the Federal Solar Tax Credit for a detailed look into how you can apply. Visit any of our state solar pages to learn more about solar incentives in your area.
Solar panel installation cost
In 2021, soft costs, including installation labor, permitting, and overhead, accounted for about 62% of the entire solar system price.According to the Larence Berkeley National Laboratory, the average total cost for home solar panels in the U.S. is about $31,558, based on the average price per watt of $3.67.After applying for the federal solar tax credit, the cost reduces to about $22,090.
The following breakdown displays the percentages of each component included in the total cost of a solar system based on National Renewable Energy Laboratory (NREL) data.
| Component | Percentage |
|---|---|
| Mounting equipment | 13% |
| Inverter | 8% |
| Supply chain | 8% |
| Sales tax | 2% |
| Installation labor | 7% |
| Permits and inspection | 9% |
| Sales and marketing | 21% |
| Overhead | 12% |
| Module | 10% |
| Profit | 10% |
Additional components, like solar batteries, are not a requirement but can be beneficial for reliability and energy bill savings. Solar battery storage systems are helpful for those who experience frequent power outages, have time-of-use energy plans, or if your state does not have favorable net metering programs.
Planning a solar panel installation
Before hiring a solar panel installation company, there are a few important factors to consider about your home.
- Your energy consumption habits.Determine your home’s energy usage with the SaveOnEnergy usage calculator to decide how many solar panels your home may need. Depending on your habits and installed system size, you can completely power your home with solar energy.
- Solar financing options. Buying solar panels requires a high upfront cost. Consider all of the available financing options, including solar loans, leases, and power purchase agreements, before hiring an installation company.
- Roof condition and angle. Solar panels require a strong roof to hold solar panels for 30 or more years. Your solar installer should evaluate whether your roof needs maintenance before signing a contract. Also, solar panels work most efficiently on a south-facing roof with a slope of 15 to 40 degrees.
- Time of year. Solar panels typically generate the most electricity in the summer thanks to extended peak sun hours. To maximize savings, you may plan to install your solar system during the winter.
- Solar panel tax credits. If you are investing in solar panels, you will want to apply for the federal tax credit and any state or local solar incentives available in your area. The Residential Clean Energy Credit provides a 30% credit of the total cost of your solar system on a first or second home.
DIY home solar panels
You may be wondering if you can take a do-it-yourself approach to installing solar panels to reduce the costs of hiring a solar company. The answer is both yes and no and largely depends on how much time and effort you are willing to put into the installation process.
While the DIY route may lower the overall cost, you need to have an adequate level of expertise and comfort levels with electrical work and building codes. If you decide to do it yourself, you are responsible for properly installing and permitting your solar system. If you do not have the expertise or time, hiring a solar company helps avoid safety risks, building code violations, and performance or warranty issues.
If you are determined to DIY solar panels for your home, you can save on the overall cost of the solar system as long as you are prepared for the extra work. Before you begin your DIY solar panel project, thoroughly research the installation steps and carefully install your panels according to their specifications.
Frequently asked questions
Based on NREL data, installation labor makes up 7% of the total cost. The average total cost in the U.S. is $31,558, so the average installation labor cost is $2,209. Installation labor is included in the total price paid to the solar company.
Sunpower, Lumio, ADT Solar, and Tesla are a few of the companies on our best solar companies list, but the best company for you depends on your location and priorities. If your priority is price, we recommend comparing quotes from multiple companies. Our best list includes nationwide companies that may not be available in your area. You may also consider local companies to support smaller businesses.
No. Solar panel installation is included in the total price of the solar panel system. It may be a scam if a salesperson offers free solar panels or installation.
Solar panel installation times vary by company. Some solar companies, like Lumio, claim to install in eight hours, while others may take a few days. Once you select an installer, they can provide a specific time frame.