Solar installations serve as a smart decision for homeowners due to increasing electricity prices from traditional sources and government incentives to use renewable energy. However, going solar isn’t always as simple as it seems, and the upfront solar panel installation cost can be a barrier for some people. This article will explore the solar panel installation cost in more detail to help you decide whether solar is right for you.
Solar panel installation costs are influenced by what factors?
Let’s explore the different elements that determine solar panel installation costs.
Type of Solar Panel
The solar panel type plays a significant role in your solar panel cost. Moreover, it can be a monocrystalline, polycrystalline, or thin film.
Monocrystalline panels are made from a single large silicon crystal and are usually more efficient than other solar panels. The cost of these systems tends to be higher as well.
Polycrystalline panels come from multiple smaller silicon crystals. They are usually less efficient than monocrystalline panels. They are typically cheaper, making them a good option for people on a budget.
Thin-film solar panels consist of a thin layer of photovoltaic material applied onto a substrate. It is the most affordable solar panel type but also the least efficient.
Panel Quality and Size
The equipment you select for electricity production can have a significant impact. You should find the right balance between quality and price, as expensive equipment doesn’t always offer substantial savings, and cheaper alternatives might sacrifice value. In addition, you must be aware that large solar panels require more labor to construct than smaller panels.
Labor and Location of Installation
The wage for labor will differ based on your location, with more expensive areas requiring a higher salary. Also, different solar installation companies charge special rates. When you first get a quote, it should include estimated labor fees. Another factor is that the price of solar panels varies from state to state and is often the most expensive, where electricity is already costly.
Home Electricity Use
It pertains to the demand usage of electricity in your home. A standard 5kW system will cost more to install than a 3kW system because it requires more panels. Your energy requirement for the house affects the installation price of your solar panels.
Solar Incentives
In some states and municipalities, the government offers solar incentives to help offset the cost of a solar panel installation. These incentives take the form of tax breaks, rebates, and credits. So, check your local incentives to see what’s available.
Level of Sunlight
To generate electricity, solar panels need sunlight, so locations with more sun will see more significant savings than those without as much exposure. In other words, the sun your home gets daily largely determines your ability to save money with solar power.
How much does solar panel installation cost?
A recent Forbes article states that the average cost of solar panels in the U.S. is $16,000 [1]. However, price pricing can differ based on your state and region. In areas of the U.S. that are sunnier and have higher product usage, there are typically more robust incentive programs than in other regions.
New Updates on Solar Tax Incentives
The Climate Bill signed by President Joe Biden offers a 30% solar panel tax credit [2] for residential purposes that decreases to 26% and then 22%, respectively, in 2033 and 2034. You can claim the credit on your annual federal income tax return, which would lower the amount of taxes you owe. You can only give the updated credit if the solar system generates electricity for a home in the U.S. during that specific year.
Takeaway
About solar panel cost, it’s essential to educate yourself on the matter. It pays to be one step closer to making an informed decision about solar power for your home. Always refer to trusted solar energy companies like Solaria Energy Solutions for accurate pricing and more information.
