Solar Panel Cost

There is no doubt about the popularity of solar energy as more people are having installed for their residences. With today’s fluctuating energy costs, solar energy represents a renewable source of stability that provides homeowners with a little peace of mind knowing that their energy bills will be more consistent especially during the hot summer months when utility bills tend to skyrocket.

However, the total cost of the installation can catch some people off-guard even though they are offset somewhat by tax credits. This means that it will take years for the solar energy to start paying for itself, but it will add value to your home and in the long run become profitable for you.

Solar panels cost

The answer will depend on a number of factors such as the number of panels being installed, the actual cost of the panels themselves, labor and so forth. Given that solar panels may represent nearly half the total installation cost, it is fair to say that the typical homeowner may pay from roughly $7,000 to $14,000 just for the solar panels alone.

When you consider that the total cost of installation is generally double which includes a variety of costs, you can see how expensive an installation can be. However, it must be pointed out that tax credits from state and federal sources can offset the cost of the solar panels considerably. This means that the typical homeowner is paying a percentage of the overall cost.

Why are solar panels so expensive?

There are a number of reasons why, but the main one is that solar panels use advanced technology and material to collect the energy from the sun. The overall expense of the materials is the main reason why solar panels are expensive and will remain so for quite some time. The panels are made from different materials that have unique properties in capturing and transmitting the energy so that it can be used for your home.

The good news is that the panels are very tough and durable which means that under most conditions they should last a long time to come. In addition, if there are new breakthroughs in terms of solar panel technology, they can replace the panels that are currently being used by your home. However, it must be pointed out that solar panels will work for many years and replacement may not be necessary at all.

Overall, the cost of solar panels are certainly impressive, but the savings that they offer are even more profound, especially for homeowners that are looking to save money in the long run. Plus, they are the type of investment that will actually add value to your home if you should ever decide to sell. Buyers are often attracted to solar energy because they understand the cost savings that it brings.

While solar panels may be expensive, the benefits they bring to your home combined with the savings from tax credits make them a great investment.

Installation cost

Again, there's no simple answer to that - the final cost will depend on a number of things such as the number of panels being installed, the tax credits received and the company providing the installation as well as several other factors.

On average, the typical cost for installation on a standard home can run anywhere from $15,000 up to $29,000. However, it must be noted that a portion of the installation is offset by the available tax credits in your state as well as any from the federal government.

Additionally, many solar power companies offer lease and financing options which can help the average homeowner with purchasing costs.

The breakdown of the installation cost

The cost is essentially broken down into three different sections:  

• Permits and installation

• Equipment

• Sales and Operations

Of the three, equipment cost generally comprise about half the total cost for installation. This is mostly because of the advanced solar panels that are used along with the supporting equipment which represents most of the cost. About 35% consists of the actual installation cost which includes labor and the permits needed to put solar panels on your residence. The rest goes to the sales and operations of the company which can be interpreted in part as profit to pay the people and to maintain the equipment after it is installed.

The good news is that the solar panels are low maintenance barring some natural disaster which means that they will start paying for themselves sooner than many other alternate forms of energy such as wind which tends to have higher maintenance costs.

Why solar energy is cost efficient for you

The bottom line is that even at the upper end of installation costs, solar energy does start paying for itself in the long run. This is why adding solar energy to your home is the perfect investment once the installation costs are fully paid, your lower energy bills will keep more money in your wallet.

Another important factor is that solar energy should raise the value of your home as well. Solar energy is a very attractive feature that buyers understand means lower energy bills in total. So as a selling point, solar energy may make the difference in getting the right price for your home.

Regardless, solar energy is the type of addition that actually pays for itself and then stabilizes your electricity bills, particularly in the summer when they tend to rise dramatically. For the average homeowner, solar energy represents a smart investment.