How Do Solar Companies Make Money
Nonetheless whether the solar panel business is a franchise or wholesaler they all make money through the successful installation of solar units. Some leasing programs generate regular income by charging their customers a monthly bill, which includes the cost of the panel installation and any extra power the customers are using from the grid.
Aside that, customer mostly pay the retail rate upfront for their panels and appropriate labour costs for connecting their panels to their home and the power grid. According to reports, a residential installation can be priced anywhere from $15,000 to $50,000, depending on the size and type of panels installed.
Leases with a zero dollar down payment can run anywhere between $25 $200 monthly depending on the type of client and the size of the installation. To accurately state the exact amount a solar panel business can make in the United States, there are key factors to consider. These factors include:
Top Guidelines Of How Much Does Solar Panel Installation Cost
surplus power produced . Arizona 25 %Credit up to$ 1,000. Sales Tax Exemption. Rewards of$ 0. 05 per watt, approximately 50 kW, topping at $2,500. Arkansas State energy company redeems surplus energy in a net-metering program. California Property Tax Exemption. House Energy Restoration Opportunity Financing Program. Financial incentive in between $200 and $750 per kilowatt.
What Is A Electrician Salary
The national average annual wage of an electrician is $59,190, according to the BLS, somewhat higher than the average annual salary for all occupations, $51,960. The average electrician salary can vary significantly depending on the state. Below is a list of the top-10 highest-paying states for electricians.
Also Check: Do Houses With Solar Sell For More
The Amount Of Energy Depends On The Amount Of Sunlight Available
Lastly, the amount of sunlight that a solar panel can access and turn into electricity is dependent on how much sunlight there is in any location.
The amount of sunlight plays a big role in how much energy a solar panel can actually make in practice. Quite simply, the more sunlight a solar panel can access, the more electricity it can generate.
For instance, solar panels used on houses in the sunny states of California and Arizona would be able to produce more electricity than houses in Alaska.
If you live in a less sunny place, you could need to install three times as many solar panels to produce the same amount of energy you could get from just one solar panel in a place that is almost always full of sunshine.
How Much Do Solar Panels Cost For A 2500 Square Foot House
For a 2500 square feet house, installation of monocrystalline panels would cost between $17,000 and $36,400.
According to the Energy Information Administration , a house in the United States sizing around 2,500 square feet requires around 12,280 kWh annually, or 1,023 kWh per month.
It further adds if that house has ample roof space such that there is no shading during the day, it would need between 17 and 26 premium solar panels to produce required electricity.
Here, premium refers to a solar panels which has output wattage rating of about 400 watts . If we go with previous per kilowatt price , then installation cost range can be determined as follows
17 panels * 400 kW per panel * 2.5 dollars per Watt = $17000
26 panels * 400 kW per panel * 3.5 dollars per Watt = $36400
So it can be said that installation cost of solar panels for a 2500 square feet house can range between $17,000 and $36,400. Average cost, thus, comes out to be / 2 = $26,700.
Don’t Miss: What Type Of Battery Is Best For Solar
How Much Do Solar Panels Cost And Are They Worth It
This guide aims to answer the question of how much do solar panels cost. And, crucially, if that is worth it for you. Does the outlay for all the new kit mean youre going to be making savings in the longer run? And when will you get your money back?
While everyones circumstances are different, this guide aims to give clear examples that show how your specific situation could benefit or not from investing in solar panels for your home.
To be clear, solar is a more environmentally friendly choice. And in the future, with electric cars putting more strain on the grid, their value will likely continue to rise. But they will cost you up front, so is this an investment worth making? Or simply too much hassle for not enough return?
How Much Can You Save By Installing Solar Panels
You can reduce your power bill by up to 75% by switching to solar panels. In the US, residents usually spend between $100 and $200 per month on electricity, with an average annual energy expense of $1500.
A widespread myth is that solar panels can completely eliminate your electricity costs. They can’t, at least not yet. However, they can indeed cut your monthly electricity expenditure by a significant amount. Depending on how much you pay upfront, you can expect to break even in 7-10 years.
Recommended Reading: What Are The Best Solar Panels In The Market
Education For Solar Photovoltaic Installers
Most employers require PV installers to have a high school diploma. Some PV installers take courses at local community colleges or trade schools to learn about solar panel installation. Courses range from basic safety and PV knowledge to system design. Although course lengths vary by state and locality, most usually last a few days to several months.
Some candidates may enter the field by taking online training courses. This option is particularly useful for candidates with prior construction experience, such as former electricians.
Going Solar Saves Versus Traditional Energy Costs
Per the US Energy Administration, the current average cost of electricity from the traditional grid is 12.75 cents per kilowatt hour . This is a nationwide average. Some states see even higher averages. In California for example, the average price is 17.97 cents per kWh.
Keep in mind, these prices continue to rise each year. Historically utilities display an upward cost trend. On average, prices have risen about 2.5% every year in the US, and theyre only getting higher!
In California, utility companies are raising their rates by at least 5% annually. Its not unusual for these rates to fluctuate suddenly leaving customers subject to insanely high electricity prices. Just recently electricity rates increased 13% in northern California one month alone!
You can check where your state falls with electricity costs in comparison to the rest of the U.S. using EIAS monthly electricity pricing data.
Read Also: Do I Qualify For The Solar Tax Credit
Job Outlook For Solar Photovoltaic Installers
Employment of solar photovoltaic installers, often called PV installers, is projected to grow 52 percent over the next ten years, much faster than the average for all occupations.
About 2,300 openings for solar photovoltaic installers are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.
Can Solar Panels Boost The Value Of My Property
One question many homeowners ask in regards to solar panels is how they impact property value. This can be seen as another way in which solar panels are a worthwhile investment.
Its been found across the U.S. that adding solar panels to a property will usually increase the value of your home by approximately 4%. For many homes, this can cover a large portion of the installation costs by itself.
This value can also increase in certain areas where eco-friendly homes are more popular with buyers. When combining this fact with the money saved on energy costs, solar panels are proven to be an economically viable and environmentally friendly solution for American homeowners.
Don’t Miss: How Much Does Solar Window Film Cost
How Many Acres Do You Need For A Solar Farm
Solar installations benefit for scaling up and the initial capital cost tends to reduce the bigger the farm. In general, you should aim at a minimum installation size of 1mW installed solar.
Depending on the installer, 1mW of solar panels needs about 4 acres of land. The table below shows the annual energy produced in various states, according to the irradiance values:
Solar Farm Return On Investment
As you can see, the initial startup costs of a solar farm are not cheap, unless you decide to lease out your land.
From the siting and permitting process to the purchase and installation of the actual solar equipment, a 1 MW solar farm can cost anywhere between $820,000 and $1.36 million.
According to Paradise Solar Energy, in 2019 their Utility farms had an average ROI of 15.55% and a payback period of 8.1 years across all states. Community solar farms had an average ROI of 13.91% and an average of 8.21 year payback period.
Sara Gambone from Paradise Solar Energy notes, “The amount of electricity you use, the rate you pay, your systems size, the system’s installation cost and your local weather are just some of the variables that will cause your numbers to deviate from these averages.”
If you have the initial capital to install a solar farm, the ROI is quite good and the maintenance is low, so you don’t need to worry about incurring a lot of additional costs.
Also Check: How Much Solar Power Needed To Run A House
Solar Panel Installer Salary In California
How much does a Solar Panel Installer make in California? The average Solar Panel Installer salary in California is $34,093 as of January 27, 2022, but the range typically falls between $29,576 and $40,573. Salary ranges can vary widely depending on the city and many other important factors, including education, certifications, additional skills, the number of years you have spent in your profession.
|10th Percentile Solar Panel Installer Salary||$25,463|
|25th Percentile Solar Panel Installer Salary||$29,576|
|50th Percentile Solar Panel Installer Salary||$34,093|
|75th Percentile Solar Panel Installer Salary||$40,573|
|90th Percentile Solar Panel Installer Salary||$46,472|
Different Solar Panel Cost For A 1500 Square Foot House
There are three major types of solar panels based on manufacturing technology:
- Monocrystalline Solar panel
- Thin-film Solar Panels
Cost With Monocrystalline Solar panels For 1500 Square Foot House
Monocrystalline solar panel are widely known as single-crystal panels. Because these are made from a single pure silicon crystal. The use of pure silicon also makes monocrystalline panels the most space-efficient and longest-lasting among all types.
However, this benefit doesnt come without additional cost. Lot of silicon is wasted while producing one monocrystalline cell, usually reaching above 50%. This results in a hefty price tag of these solar panels.
Cost With Polycrystalline solar panels For 1500 Square Foot House
Polycrystalline solar panels come from different silicon crystals instead of one. Polycrystalline cells are much more cost effective because there is hardly any wastage. However, these panels are less efficient in terms of energy conversion and occupy more space. These panels are less efficient in high-temperature environments because they have lower heat tolerance than monocrystalline panels.
Above price calculations are made for monocrystalline panels. Exact difference between the prices of different types of panels will vary depending on solar installation company and model. As a rough idea, polycrystalline panels are 20% cheaper than monocrystalline panels but also 20% less efficient .
Cost With Thin-film Solar Panels For 1500 Square Foot House
Recommended Reading: What Is The Average Life Expectancy Of Solar Panels
How Many People Use Solar Energy In America Today
Firstly, lets assess the popularity of solar energy across the U.S. Despite how new solar energy is to the country, it has continued to grow in adoption rates and overall energy usage.
As of May 2019, the U.S. surpassed a total of 2 million solar installations. This is particularly impressive when you consider that the first 1 million solar installations in the U.S. took 40 years to accomplish.
The time it took for 1 million to double and become 2 million installations was just 3 years.
These figures prove that solar energy is an on-trend energy solution, with more and more companies and residential properties making the switch. At the end, estimates showed that enough solar energy was produced in America to power a total of 12.3 million homes.
Solar Panel Installer Pay
A solar installers salary will vary slightly depending on which research you look at, but the overall consensus is that a solar installer will make $35,000 $45,000 each year.
Numbers falling within this range are mentioned on at least 8 different salary-related websites. This estimated solar installer salary range falls in line with Indeed.coms research, which evaluated 1,837 employees, users, and past and present job advertisements on Indeed in the past 36 months . Indeed.com found an average salary in the U.S. of$21.31/hour.
These numbers may change depending on:
Well dive into each factor below.
Its important to note that, as with any occupation, minimum wage may differ by jurisdiction and wages and benefits vary by employer. You should consult your prospective employer for actual salary figures.
Don’t Miss: What Is The Best Solar Powered Generator
Salary For Solar Photovoltaic Installers
Also known as: Bridge Ironworker, Construction Ironworker, Iron Guardrail Installer, Metal Tank Erector, Ornamental Ironworker, Pre-Engineered Metal Building Ironworker, Precast Concrete Ironworker, Steel Fabricator, Steel Fitter, Structural Steel Erector
SEE MORE SALARIES FOR
Solar Photovoltaic Installer Training
Some PV installers learn their trade on the job by working with experienced installers. On-the-job training usually lasts between 1 month and 1 year. During training, PV installers learn about safety, tools, and PV system installation techniques.
Electrician and roofing apprentices and journey workers may complete photovoltaic-specific training modules through apprenticeships.
Solar PV system manufacturers may also provide training on specific products. Such training usually includes a system overview and proper installation techniques for the manufacturer’s products.
Military veterans may benefit from the Solar Ready Vets program, which is a joint effort of the U.S Departments of Defense and Energy to connect veterans with training and jobs in the solar industry.
Also Check: How Much Would It Cost To Get Solar Panels
What Is The Average Cost Of A 3kw Solar Pv System
After gathering appliance consumption information as well as total battery storage and individual solar panel dimensions, you can see that the price of various solar systems fluctuates a ton. However, there is also a general figure that will help you figure out how expensive 3kw solar panels can get.
In England, the price of a 3kw solar panel system would be approximately £500. This also depends upon your roof space, that is, your house roof. In addition to this, if you prefer an advanced version of the solar panels, you can also find a system worth £7,000.
Moreover, you can bargain and get this plug in solar kit for a mere £2500 also. This is how you save money!
States That Have The Highest Pay
The BLS reports the following states as having the highest average annual pay for solar photovoltaic installers:
- Oregon: $58,180
- Massachusetts: $53,180
- Arizona: $51,840
The higher wages in these states are generally attributed to their primary industries. They all have economies based on tourism, government or military presence, and high-tech industries.
Please note that only twenty-three states and Puerto Rico have reported employment and wage statistics for solar technicians. Twenty-two cities and metropolitan divisions, and three non-metropolitan areas are all that have detailed employment and wage statistics. The states and cities that have not reported may have significantly higher or lower averages.
The reported salaries do not necessarily reflect the economic status of individuals because the numbers do not account for the differences in the cost of living. For example, according to the Missouri Economic Research and Information Center , the cost of living index for Hawaii was 191.8. That is the highest cost of all the states, which some attribute to the Jones Act, and it means that Hawaiians paid $191.80 for what cost $100 in other states.
Recommended Reading: Does Granite Come In Solid Colors
The Inverters And Charge Controllers
Inverters convert the kind of electricity generated by the solar panels or the electricity stored in the batteries to electricity that your home system can use. Charge controllers convert the electricity generated by the panels so that it can be stored in the batteries. The type of equipment that you choose here, or the way it is configured can be a big factor when it comes to cost. Note that some entry-level basic inverters could damage electronic devices that use a motor such as a vacuum cleaner or a hair dryer.
Save On Electricity Costs With Solar Panels
Whether you are aiming to lower your electricity expenses or reduce your carbon footprint, the benefits of solar panels are hard to overlook. Invest the time to obtain all of the necessary information including house size, solar insolation, current electricity rates, and your yearly consumption. Go about the installation process wisely and make it worth the investment!
Recommended Reading: How To Get Into The Solar Industry
What Are The Requirements To Become A Solar Technician
Most companies require that solar technicians have a high school diploma and a valid drivers license. Learning safety procedures is a priority for companies that offer on-the-job training. Professionals who have attended classes and training programs have better job opportunities, as well as individuals who have related trade experience, such as electricians, roofers, or carpenters, as they already understand aspects of construction and only require minimal additional training.
Salary data website PayScale confirms the report above by the BLS, noting that companies are beginning to expect solar installation applicants to have specific certifications and job experience.
Outside of the hard skills and training required for this profession, successful technicians must also have excellent communication skills and be able to interact effectively with co-workers, supervisors, and customers.