Cost > State Incentive Information

Many of the most crucial questions people have about solar have to do with the cost and financing of a solar system. Luckily, current U.S. solar legislation means that solar is an increasingly wise investment for homeowners. To have a look at the situation and major incentives in your state, have a look at our handy incentives map above. Or, to learn more about the basics, check out our answer to the following questions:

How much does a photovoltaic (PV) system cost?

Figuring out how much a particular PV system will cost is a complicated process, as the overall cost depends on a number of different factors: the size and type of the installation, the particular manufacturer, and your local installer. Other factors include subsidies and other government incentives, which can significantly lower the overall price tag. Before such subsidies, for example, a typical residential PV system of 3.5 kilowatts would cost about $35,000 all told. After, however, that price could be $10,000 (or more) lower. Again, this all depends on where you live.

For a look at the incentives available nationally and in your area, check out our interactive map.


What is the break-even point for solar energy system?

There is no single answer, but many systems pay for themselves between 7 and 14 years. Much depends on the overall cost of the system, which is a product of the type and size of the installation and the incentives available in your area. Furthermore, the break-even point is influenced by the price of electricity: if your utility charges 12 cents per kilowatt-hour (all else held constant), your break-even point would come sooner than if you were only being charged five cents per kilowatt-hour. This is because in the first case you’d be saving more money in monthly electricity charges: each kilowatt-hour produced by your PV system would save you 12 cents, as opposed to five.


How can I finance the purchase of a solar PV system?

There are several different ways. More and more, companies and banks are working together to provide hassle-free loans to consumers interested in purchasing solar power systems. Many people also take advantage of what are called Energy Efficient Mortgages. In some instances, your monthly loan payment may be equal to—or even less than—what you used to pay in bills to your electrical utility.


You can easily learn more about this issue and more at our Frequently Asked Questions section. Or, to find out an easy way if solar is right for you, check out this post from our blog about how solar is best for people with large electricity bills

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