Learn How to Price a Solar Installation Job | A Guide

Solar energy is more than a trend - it’s a smart investment. If you’re a solar installer, knowing how to price a solar panel installation job can make or break your business.

The right pricing helps you stay competitive while ensuring you turn a profit. It shows potential solar customers that you’re reliable and professional.

A fair, clear solar quote builds trust and helps you stand out in the solar industry. Overpricing can drive customers away, while underpricing could leave you in the red. This can also be true when determining how to price a pest control job.

How Much Do Solar Panels Cost in 2025?

As more people look to harness the power of the sun, understanding the costs and factors associated with solar panel installation is essential, including how much electricity each panel offers, for example, which can affect the average labor cost.

In 2025, the average cost of solar panels has continued to drop, making it a great time to consider installing a solar energy system.

The average cost for a 5kW solar panel system in Florida is around $10,553 before incentives, which translates to about $2.11 per watt.

After applying the federal investment tax credit (ITC), which lowers costs by 30%, this price drops even more.

On the other hand, the average cost for the same 5kW system in California is approximately $11,553, or $2.31 per watt.

Again, after tax credits, you could save around $3,466, bringing your total down to about $8,087! These tax incentives are among the benefits received thanks to the Inflation Reduction Act (IRA).

According to the International Renewable Energy Agency (IRENA), we can expect a remarkable 59% reduction in electricity costs generated by solar PV by 2025, making it one of the most affordable energy sources available.

As more people install solar systems, manufacturers can produce panels at lower costs due to higher production volumes.

Follow These Eight Steps for Setting Solar Panel Prices

Pricing solar panels the right way can set your business apart in a competitive solar industry. However, where do you start?

By considering our eight key factors, you’ll be able to create pricing that is fair, competitive, and profitable.

Whether you’re just starting or refining your current pricing strategy, these steps will help you stay ahead.

Company Size

The size of your solar company plays a big role in pricing. Larger companies may have higher overhead costs, like salaries, office space, and equipment. Labor costs will also be higher for companies with more than 10 employees.

These expenses often mean higher prices for customers.

On the other hand, smaller businesses may offer more competitive rates because they’re more agile. Identify your fixed and variable costs to set a baseline for pricing.

Solar Panel Type

Not all solar panels are created equal. Your pricing should reflect the type of panels you’re providing.

• Monocrystalline Panels: High efficiency, sleek design, and premium pricing.

• Polycrystalline Panels: Budget-friendly and reliable but less efficient.

• Thin-film Panels: Lightweight and affordable but ideal for specific situations like RVs or industrial use.

Know your inventory and the benefits of each type so that you can explain the cost differences to customers. For more ideas, consider websites for solar installers.

Quality of Panels

Higher-quality panels often come with better warranties and longer lifespans, which can justify a higher price point.

Customers may be willing to pay more for panels that are known for their durability and efficiency.

When determining your pricing, consider the trade-off between quality and cost.

Offering different tiers of products can help cater to various customer budgets while maintaining a focus on quality.

Dimensions

The size and dimensions of a solar energy system directly affect pricing. Larger systems need more panels, which means higher costs for materials and labor.

Calculate the price per watt to offer customers a clear and consistent pricing structure.

Here's an example:

• A 5kW system might cost $12,500 to $15,000.

• A 10kW system might range from $25,000 to $30,000.

Breaking it down per watt helps customers compare your offered quote with others.

Location

Where your customers live affects pricing due to permits, regulations, and sunlight availability.

In sunnier states like California or Arizona, solar systems tend to pay for themselves faster because they generate more energy.

Meanwhile, locations with high energy costs might see quicker returns on investment, even if sunlight isn’t as abundant.

Factor in location-specific costs like:

• Permitting fees

• Transportation costs

• Local labor rates

Solar System Maintenance

Solar panels need minimal maintenance, but occasional cleaning or inspections are necessary.

Including a basic maintenance package in your pricing can make your offer more appealing to customers. If you’re offering optional maintenance plans, clearly explain the benefits.

Example: “For just $200 a year, we’ll clean and inspect your solar panels to keep them running at peak efficiency.”

Warranty

Warranties protect your customers’ investments and give them peace of mind.

Longer warranties often justify higher prices because they show confidence in your products and services.

Most solar panel warranties last between 10 and 25 years. Be sure to include warranty details in your pricing breakdown.

Highlight the warranty as a selling point. In this case, you could say something like - “Our panels come with a 25-year performance guarantee, ensuring long-term savings.”

Soft Costs

Soft costs refer to expenses that aren’t directly related to physical materials but still impact overall pricing - think licensing fees, design costs, and trade expenses.

• Permits and Inspections: Vary widely by location.

• Marketing Costs: Building a strong site can attract potential solar customers and boost your business. Blue Collar Websites can custom-make you a website for only $97 within two weeks!

• Customer Acquisition: The time and money spent on consultations and proposals.

The Benefits of Running a Solar Installation Business

With the increasing demand for renewable energy solutions, now is an excellent time to dive into this booming industry.

Running a solar installation business not only offers financial rewards but also contributes positively to the environment and your community.

Growing Market Demand

The solar industry is experiencing rapid growth, driven by a global shift towards renewable energy sources.

As more homeowners and businesses seek to reduce their carbon footprints and energy costs, the demand for solar installations continues to rise.

According to the Solar Energy Industries Association, the U.S. solar market has grown enormously, with installations reaching 14.5 gigawatts in recent years.

This expanding market presents ample opportunities for new businesses to thrive.

Financial Incentives and Tax Benefits

Starting a solar installation business can be financially advantageous due to various government incentives and tax benefits.

In many regions, businesses can benefit from tax credits, rebates, and grants designed to promote renewable energy adoption.

For example, the federal Investment Tax Credit (ITC) allows organizations to take away a notable amount of their solar installation expenses from their federal taxes.

These financial incentives can help offset initial startup costs and improve your bottom line, making it easier to establish a profitable business. how to price a garage door repair job

Long-term Profitability

Once you set up your solar installation business, you can enjoy long-term profitability as more customers turn to solar energy solutions.

The average commercial business owner who switches to solar sees their monthly electricity bills drop significantly - often by 75% or more! In short, solar panels save everyone a huge amount of money annually.

This reduction in operational costs makes solar an attractive option for businesses looking to save money.

Installing Solar Panels Can Contribute to a Sustainable Future

While saving money is a fantastic benefit of installing solar panels, there’s also an environmental aspect to consider.

Solar power is clean and renewable, reducing greenhouse gas emissions and dependence on fossil fuels.

By choosing to install solar energy, you're making a positive impact on the environment while enjoying financial rewards.

Each kilowatt-hour (kWh) of electricity generated from solar reduces harmful emissions like CO₂ and other pollutants, contributing to cleaner air and a healthier planet for future generations.

Equipment and Materials Needed in a Solar Energy System

You’re probably wondering what equipment and materials you’ll need to get your system up and running.

Let us walk you through the things you'll need to kickstart your solar project.

Solar Panels

At the heart of any solar energy system are the solar panels - also known as photovoltaic (PV) panels.

When selecting which solar panels to offer, you’ll want to consider factors like efficiency, durability, and warranty.

Most residential systems use monocrystalline panels, known for their high efficiency and sleek design, but polycrystalline panels are also available at a lower cost.

Inverters

This piece of equipment is necessary, as it converts direct current (DC) electricity into alternating current (AC) electricity, which is what a residential property uses.

• String Inverters: These are the most common and cost-effective option but can be less efficient if some panels are shaded.

• Microinverters: On the other hand, these are attached to each panel, allowing for optimal performance even if some panels are obstructed from sunlight.

• Power Optimizers: Similar to microinverters, these devices enhance the output of each panel before sending the DC electricity to a string inverter.

Racking Systems

Solar panels don’t just sit on a roof - they need a solid foundation!

There are various types of racking systems available, including fixed racks and adjustable ones that let homeowners change the angle of the panels seasonally. Make sure you offer different types of racks to your customers.

Net Metering

When connected to the grid, homeowners will likely need a net meter installed by a utility company.

This device tracks how much energy they draw from the grid versus how much energy they send back when the newly installed solar panels produce excess power.

Contact Blue Collar Websites to Upgrade Your Solar Installation Business

If you're looking to boost your solar installation business, contacting Blue Collar Websites could be a game-changer.

In today's competitive market, having a robust online presence is essential for attracting potential customers and generating leads. This can also be important when considering how to price a garage door repair job.

Your website is often the first impression potential customers will have of your business. We ensure your site looks great and also functions effectively to convert visitors into leads.

Best of all, you can have us build your company a custom-designed website for only $97 within two weeks! You can also make unlimited edits to the draft.

In a rapidly growing industry like solar energy, investing in a strong online presence is crucial for success. Don’t miss out on the opportunity to elevate your business.

Call us at (740) 675-6104 to reach out to Blue Collar Websites today!