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What is the price of a solar panel?

Jul 13

It's obvious that solar panels can be expensive. Most homes will spend between $10,000 and $30,000. Two main reasons solar panels are so expensive:

The cost of the equipment is the first. It requires sophisticated manufacturing and expensive raw materials like high-grade silicon for solar cells and lithium for solar battery production.

This is due to the soft costs. These include a professional installation that is safe and compliant with local codes, manufacturer warranties, as well as passing all inspections.

This is, however, the short answer. There are many factors that influence the price of solar panels. We found that solar panel prices can vary depending on the brand, system size, location, roof type, and other factors.

How have these prices changed over the years? How can homeowners get the best deal for their new solar installation? Is it worth the cost of solar panels? All these questions will be answered in this blog

How much are solar panels?

Before incentives, solar panel installations typically cost between $2.50 to $3.00 per watt. An average 6 kW home installation would cost between $15,000 and $18,000 without any incentives.

A 10 kW solar system may be more practical if you have a large house or use a lot of electricity. A 10 kW system costs between $25,000 and $30,000. This is before any incentives.

Sticker shock?

It is possible that you were shocked when you first saw the cost of solar panels. You will be even more shocked to learn that solar panels are cheaper in other countries.

Solar panels are now much cheaper than they were a few decades ago, and many states offer a great return on investment.

Solar panels are now cheaper than ever

According to the Solar Energy Industries Association, (SEIA), in 2010, the median price of solar energy systems was 70% lower than it was in 2010.

We can see that solar panel prices dropped 37% if we reduce the timeframe and only look at the second half of that decade.

According to the above, a 6-kW residential solar panel system would cost an average of $17,000. At current prices, it would cost $28,095 and $59,000 respectively in 2015.

Here is our analysis of solar panel cost trends.

  • Residential solar's cost-benefit equation has been significantly altered by the price drop.
  • The solar payback period in most states is between 4 and 9 years.
  • Due to rising commodity prices, and supply chain constraints, solar panel costs have stagnated since 2020.
  • As solar manufacturing technology matures, we won't see significant price drops in the near future.

The final price of residential solar panels is affected by many components.

Our data shows that the cost of a project can be divided into two types: hardware costs and soft costs.

  • Average solar panel costs are 46% higher than the average hardware cost. This includes solar panels, inverter(s), and the balance of the system (racking, mounting, wiring, etc).
  • 54% of the average cost of solar panels is accounted for by soft costs. These include installation and labor costs, sales and marketing expenses, permit and inspection fees, as well as margins for installers.

How can you reduce the cost of solar power installations?

Consumers can reduce their final solar power bill even with extra tariffs and soft costs.

  • The federal tax credit: To receive as much as 26% back on your investment, you can take advantage of the federal investment credit for new installations. Anyone who pays taxes can take advantage of this incentive.
  • Look for incentives at the state and utility levels: Many incentives are available at the local, state, and utility levels. Some of these incentives can be worth thousands of dollars.

 

Smart Solar New Haven

New Haven, AZ

(475) 278 9244