With more than 5 million installations all throughout the country in 2025, solar energy keeps becoming popular in the United States. Chicago fits this trend as people investigate the advantages of living green.
Still, given the most recent economic data, many homeowners worry about the present solar panel cost. So, today, we’ll examine the solar system price for an average 1500 square feet home and what affects it.
Estimating the costs of installing a solar system for a 1500 sq ft home involves examining various factors influencing pricing. Here is a list of major components that influence the average cost of solar panels for a home in Illinois:
Let’s inspect each aspect that affects solar panel costs.
Usually measured in kilowatts (kW), the solar system’s size directly affects cost. Currently, the typical cost per watt in Illinois is $2.97.
How much does it cost to install solar panels? Considering that regular families consume 5 kW to 7 kW, the average cost of solar panels for a home varies from $15,000 to $21,000. However, the precise price depends on a variety of extra factors.
This decision influences the solar panel system cost as well as performance. Monocrystalline solar panels are the most costly choice with a 25-year lifetime and range in efficiency from 16% to 22%.
Polycrystalline panels are more affordable, but their efficiency ranges from 12% to 17%. Their average lifespan is closer to 20 years. They are a great option for a lower solar panel cost for your 1500 sq ft home while getting stable and predictive energy production.
Emerging technologies promise higher efficiency at lower costs but are still gaining market traction. So, if you consider installing solar panels in the next 1-3 years, choose between predictable mono- and polycrystalline options.
The solar system’s price consists not only of panels but also of additional equipment. Inverters and mounting kits are obligatory for any system. Meanwhile, you can choose whether you need batteries or you can connect the system directly to the grid. Let’s examine them in more detail and how they affect the home solar system cost.
Solar inverters convert the direct current (DC) power generated by panels into alternating current (AC) electricity for appliances. The cost of inverters varies based on type and capacity:
The choice of an inverter impacts the system’s efficiency and reliability. However, more advanced options increase the home’s solar power cost.
Adding battery storage allows homeowners to store excess energy during power outages or at night. In Chicago, the average cost for battery storage systems is approximately $1,687 per kilowatt-hour (kWh).
A typical 7 kWh system for a 1500 sq ft home translates to an increased solar panel cost of almost $10,000 before incentives. The net cost can be significantly reduced after applying the 30% federal Investment Tax Credit (ITC).
While high-quality wiring is essential for safe and effective energy transfer, proper mounting guarantees solid panel attachment. Usually, these parts contribute 10% to 15% of the system cost. Roof type, system size, and install complexity will all affect the precise equipment cost.
Installation complexity is the key factor that affects the solar panel cost. The more intricate the installation, the higher the expense. Since each property is unique, there is no one-size-fits-all answer to this question.
Challenging designs may require additional labor and materials. It’s easy to install panels on a new roof with approximately a 30° to 40° angle, as they require minimal improvement. Meanwhile, the solar system cost can skyrocket for houses with old, rusty, and steep roofs.
To install panels in Chicago, you must adhere to all local regulations. Depending on the project’s complexity, the solar panel cost increases by up to 10%. Projects eligible for the Solar Express Permit program can be reduced. Typically, these are small systems with an inverter output of 13.44 kW or less. They can receive same-day permit approvals at a reduced fee of $275.
If your system exceeds 13.44 kW or involves more complex configurations, you’ll face a standard plan review, increasing the solar panel cost for your 1500 square ft home. You must submit detailed drawings and calculations prepared by an Illinois-licensed architect or structural engineer and electrical diagrams signed by a Chicago-licensed supervising electrician or a licensed design professional to local authorities.
After installation, the City of Chicago’s Department of Buildings conducts a final inspection to verify that the system complies with building and electrical codes. Additionally, ComEd’s local utility company performs an inspection to ensure proper interconnection with the electrical grid.
Government solar incentives significantly reduce the solar panel cost for a 1500 sq ft home. The Federal Solar Investment Tax Credit (ITC) allows you to deduct 30% of the installation cost from federal taxes. We also encourage you to check state and local programs, as they offer additional rebates or federal tax credits, lowering the cost of solar panels.
Depending on your system and life situation, you may also submit for the Illinois Shines and Illinois Solar for All programs. Starting January 1, 2025, new solar customers are eligible for a one-time rebate due to the new Distributed Generation Rebate of $300 per kilowatt of installed capacity.
Source: Energy.gov
You can also apply for net metering to sell your green electricity to the grid. It won’t lower the cost of solar panels for a 3-bedroom house, but will reduce the bills. But keep in mind that as of January 1, 2025, Illinois has modified its net metering policy:
Investing in solar panels in Chicago gives you confidence in your future electricity independence and provides substantial financial benefits. While the initial average solar panel cost of approximately $18,000 may shock you initially, the payback of 5-8 years and average 25-year savings estimated at $60,000 shows the significance of the green transition in the next few years.
Explore your solar options and get a free solar quote today!