Cost of Solar Panels and Installation
Solar energy is the thing of today. It is not only user friendly; it is eco-friendly as well. It is harnessed from the abundantly available sunlight. It’s genuinely renewable and leaves a minimum carbon footprint. Resorting to solar energy is one of the easiest ways you can contribute to overcoming environmental challenges. It guarantees a sustainable future and saves user’s money. It is cost-effective, but it involves a considerable upfront investment. The installation cost depends on multiple factors. Moreover, installation cost varies with different states. With time, the solar panel cost has decreased over time, and with technology development, it is expected to decline further. In addition to that, its demand is gradually increasing globally. It will benefit the consumer as well as manufacturers. This blog will aim to analyze the average cost of solar panel installation and related factors. Furthermore, we will discuss in-depth if a solar panel system is worth the investment
Average Cost of Solar Panels
The solar panel system is cost-effective, but it does require a considerably high installation cost. The solar panel system average installation cost varies with states. Multiple factors influence the installation cost in these states. Therefore, it is a complex process to calculate average cost. Different states offer attractive incentives such as tax credit to promote solar panel system use. The Federal solar tax credits offer deduction up to 26% of the total cost, thereby making it more attractive. The following table elaborates on the cost of installation of a 5-kilowatt system and after tax credits are applied.
Factors effecting cost of solar panels
Different factors can impact the installation price of the solar panels system in other states. When the user pays for the solar panel system installation, he/she is paying much more than the original system components. The solar panel component makes only 15% of the total cost. The additional cost includes labor, permit fees, design, supporting equipment, inverter, hardware, wiring, etc.
The performance of the solar panel depends on its size and quality. Every household and business has unique needs and demands. The system should have potential to complement those needs. At the same time, superior quality systems are typically priced high. Better accessories and hardware add to the system’s performance, and it can produce more electricity with the same quantity of sunlight. The warranty also increases with the quality of the solar panel system.
Legal permits and labor
There are some additional fees for connecting your solar system to the grid. It requires labor for engineering, design, and installation. The customer has to pay the HOA approvals, permit filings, site inspections, and installation.
Your unique needs and home characteristics
The electricity needs are user-specific, and the system should be equipped enough to complement those unique needs. Furthermore, your location also plays a critical role in the average installation cost of the system. The true south-facing roofs are ideal for solar panel systems. The solar panels are placed at approximately 30 degrees to maximize production. The size of your house can influence the cost of installation. For example, if the house has multi-roofs, the installation and wiring costs will increase. Sometimes the customer needs to do specific alternations in the building, which again increases the installation value.
How can you save money with solar panels?
The solar panel system requires an initial investment, but the system can save thousands of dollars for the user over its lifespan. It may need 10 to 12 years to break even. Although the initial cost is higher but it starts saving spending on the electricity as soon as the production starts. The system saving depends on your electricity usage, system potential to harness the energy, and amount spend on installation. When a user decided to switch to solar power using a solar panel system, it increases the building value. The properties with installed solar panels have more market value than the ones without it The user can supply the excess energy produced to the grid and enjoy bill credit.
Solar Shoppers dos and don’ts
Customer behavior has changed during the last few decades. They prefer to make a well-analyzed and calculated decision based on market research and analysis. Before buying the solar panel system, the user should collect all the needed information and feedback. He/she should do comprehensive market research before making the purchase decision. In addition to that, the user should be clear about his/her solar power needs. Before opting for the solar panel, companies critically evaluate their customer service, pricing options, and problem-shoveling approach.
Furthermore, quality solar panels are priced high. It is critical to understand the factors which can add to the solar panel cost. Before making the decision, explores all the available options. Critically evaluate their advantages and disadvantages. Select the system which can fulfill your distant needs. Focus on the inverter, monitoring equipment, and racking as well. Besides, the warranty differs from company to company. Finally, complete your paperwork carefully.
In a nutshell, it is essential to resort to solar energy to ensure a sustainable future. The user can save a lot if the system is according to the user’s needs. Here it is critical to understand your electricity needs and how the solar panel system can address those needs. It requires upfront cost, which varies with different states. The government offers incentive to motivate user to resort to solar panel system. Additionally, there are many alterative available to make the process more smooth and affordable.
District of Columbia