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solar energy expensive

Why Are Solar Panels So Expensive? Where Are Costs Headed?

According to a Solar Energy Industries Association report, the median installed cost for solar energy systems dropped by up to 70 percent during the 2010s.

Data reveal that although solar panels prices have flat-lined, the cumulative drop in solar energy system costs has significantly altered the cost-benefit balance for installing solar panels on your dwelling.

Many homeowners who looked at solar when it was more expensive are unaware of how cost reductions in recent years have significantly enhanced the return on investment.

However, despite residential solar prices now averaging only $3.12 per watt, many are still shocked by how expensive solar panels are. This shock is compounded when users hear that residential systems are much more economical in several other countries.

When consumers see individual solar panels advertised online at a fraction of what's being charged for.

What factors affect the purchase price of residential solar energy?

How do homeowners get the best deal on their new installment?

These are the questions we’ll address in this guide.

What Makes Up The Cost Of A Solar System?

solar panels for home

Several elements in residential solar installations influence the final price.

Hardware is the most significant investment for new solar installations.

Batteries, panels, and collectors may account for 25% of the entire cost for a new system.

The Office of Energy Efficiency and Renewable Energy estimates that around 64 percent of solar system costs come from soft prices.

These include:

  • Permit fees
  • Sales tax
  • Labour
  • Transaction fees

The decrease in solar power costs is linked to lower equipment prices.

On the other hand, the soft prices that constitute the freshest installment expenses continue to grow.

Working with the right equipment maker is another way to control solar equipment expenses.

Find offers from solar battery producers that could significantly decrease your out-of-pocket costs.

How Do Recent Tariffs Impact Rooftop Solar Panel Costs?

installing 300 watts solar panel

In January 2018, the United States government raised tariffs on imported solar panels to 30%. The tariffs are now falling by 5% annually, ending at 15% in 2021.

In this short term pricing spike, installation firms are trying seriously to pass a minimal increase on to their customers.

In fact, customers should only find a growth of 10-12 cents per watt from these rates, accede on international power experts Greentech Media.

How Can You Reduce The Cost Of Your Solar Energy Installation?

Even with soft costs and tariffs higher, consumers can find ways to decrease the final bill for their residential solar energy system.

  • Take benefit of the federal tax credit for new installments to receive up to 26% of your investment back. Some states also offer their own incentives.
  • Pick an installation firm with funding terms that fit your budget.
  • Consider purchasing used equipment. However, this might save you some money upfront; used equipment can hide internal damage that prevents your system from generating the maximum amount of usable electricity, so proceed carefully.

In some areas, community solar farms create renewable energy available and affordable for everybody. Locate one in your area or arrange your neighbors and start a new job.

How Much Does It Cost To Maintain A Residential Solar System?

As components get damaged, wear out or become obsolete, routine inspections and maintenance are crucial to protecting power sources.

Once the installers are finished, the homeowner is solely responsible for the cost of maintenance.

An annual inspection by a regional solar installation provider costs approximately $150.

Repairs and equipment replacement vary.

A professional cleaning to free panels of debris and dirt averages $10 to $20 per panel.

Using these quotes, a house with 5 solar panels would spend $200 to $300 annually to keep their system running smoothly.

A household with 30 solar panels would require between $450 and $750 for routine maintenance fees.

Frugal energy users may attempt cleaning their own panels to decrease their costs. Though periodic professional cleanings are still required to maintain optimum system performance.

Does The Installation Company Affect The Purchase Price?

Solar Panel Installing

Solar power companies often provide incentives to lure curious clients.

These deals may have a positive effect on the final cost of residential solar energy systems.

Check with different installation companies to ensure you have the best price available.

Keep in mind that lower prices don't always mean a better deal.

Take care to read reviews and find an idea of the corporation's work quality before committing to work together.

How Much Can I Save With Solar Power?

While the price to install solar systems is decreasing, the cost of producing power is declining as well.

As per the International Renewable Energy Agency (IRENA), solar power costs approximately $.10 per kilowatt-hour.

Making an identical measure of power with fossil fuels varies from $.05 to $.17.

But just how much each family actually spends depends on several things:

  • The number of panels and how much power each can generate.
  • Hours of sunlight caught on the property each day.
  • Battery storage capacity.
  • Your agreement with your local utility provider.

The solar payback period is the period it takes you to recover your initial investment costs.

Next time, every watt of energy which you make is profit.

This solar payback period calculator can allow you to recognize how soon your new residential solar system will begin paying you back.

Is Going Solar Beneficial?

Flexible Solar Panel

Solar energy is safe, clean, environmentally friendly, cost-effective, and trustworthy.

Homeowners throughout the country are enjoying lower monthly utility bills and higher energy independence with solar power installations.

Speak with an installer in your area for a more personalized evaluation of your premises and possible savings.

About the Author David Roberts

I'm a Mechanical Engineer who's obsessed with solar energy and sustainable living.

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