Solar Panel Costs Hit Record Low: Insights from EnergySage's 2024 Report

The cost of solar panels has reached a record low, with the national average now at $2.69 per watt, according to a recent report from EnergySage, a solar marketplace. This data, derived from customer quotes between January and June 2024, shows a significant decrease in solar panel prices over the past decade, following a price spike in 2021.

Several factors have contributed to this downward trend. The easing of supply chain disruptions caused by the pandemic and higher interest rates for solar financing are likely influencing the current prices. However, California’s recent changes to its net billing policy have made solar energy less appealing for residents in the state, which is the largest solar market in the U.S.

Additionally, the average payback period for solar investments has improved, dropping from approximately eight years to seven and a half years between 2023 and 2024. This shorter payback time suggests that homeowners can expect a quicker return on their investment in solar energy systems.

While the cost of solar panels can vary based on individual circumstances, these national trends provide valuable insights for homeowners considering solar energy as a viable option. The report from EnergySage highlights key findings that can help potential buyers make informed decisions about transitioning to solar power.