Thursday, September 29, 2022

How Much Does A Big Solar Panel Cost

Average Solar Installation Cost By Location

How Much Do Solar Panels Really Cost?

While most people picture solar panels on the roof, this is not the only place they can be installed. They can also be mounted on the ground using a frame. This can be beneficial if your roof cannot support the panels or is predominately in the shade. Both installation types have several factors to consider, including installation costs.

Location
$18,000 – $25,000

Estimate Residential Solar Panel Cost

The brunt of the expense with solar panels is in installation and the purchase of the actual panels.

» MORE: Compare solar loans and apply

Minimal long-term expenses can make up for the upfront costs. Most systems dont require much maintenance and are designed to last for 20 years or more with little change to the amount of electricity produced, Nilsen says.

When calculating the total price, consider how much energy you regularly consume your usage is listed on your monthly utility bill and what size system will generate the amount needed. Some tools, like the SolarReviews calculator, estimate the system size for you.

With installation, an average residential 5kW size system costs between $3 and $5 per watt, according to the CSE, which results in the $15,000 to $25,000 range. That cost is before any tax credits and incentives.

If you know your current energy usage, you can calculate how much youll need to pay for solar panels.

» MORE: Calculate your monthly payments on a solar loan

Then comparison shop for solar panels as you would other big-ticket items, such as a car or TV, says Vikram Aggarwal, CEO of the solar marketplace EnergySage. Some companies lower installation costs through rebates and other programs.

Aggarwal recommends getting quotes from three to five contractors. EnergySage compiles solar companies customer reviews, certifications, Better Business Bureau profiles and other information to help you find reputable providers.

What Kind Of Business Does A 100kw Commercial Solar Pv System Suit Best

This systems great for large manufacturing facilities and organisations with high energy usage. Weve installed 100kW systems at Gilmac, a premier exporter of Australian hay and straw located in York Universal Seafoods, an importer, exporter, distributor and wholesaler of high quality seafood supplies in Canning Vale and RAC WA in West Perth, to name just a few.

To find out if a 100kW commercial solar power system is the right fit for your business, request a callback with one of our expert energy consultants.

Also Check: Can I Add More Batteries To My Solar System

How Do Solar Panels Work

Simply put, solar panels absorb photons that then tap electrons free. Once theyre free from the atoms, it creates electricity! Solar panels take in light and directly turns it into a flow of electricity to use.

  • Solar panel cells absorb sunlight
  • They convert the light into DC power.
  • All systems need some type of inverter to convert that power to AC power.
  • The electricity is then sent through wires into your home
  • That powers everything connected to it
  • Any excess of electricity produced is then fed into the electric grid

Solar systems are not complicated and easy to understand once you have the basics down. Now that you understand how they work, lets take a look at how long they last

Rebates And Incentives: Reducing Your Solar Costs

How Much do Solar Panels Cost in California?

Weve been talking about factors that add on cost to a solar installation, but its also equally essential to consider the ways you can reduce your costs with solar rebates and incentives. Tax credits, cash rebates, performance-based incentives , and energy credits are all ways you can get money back on a solar installation. The availability of these types of incentives almost always depend on where you live utilities, cities, and states all usually offer their own solar incentives to people living in their service areas.

Also Check: How To Start A Solar Farm Business

History Of Solar Prices In Australia

Prior to the solar boom in 2008 solar power prices were as high as $15 to $20 per watt and was really only taken up by the early adopters with greater financial means.

Solar took off in 2008 and 2009 as the government introduced premium feed in tariffs which offered up to 60 c/kWh for solar energy exported into the grid. This attracted a lot of customers and installation companies to the market and ultimately all the schemes in each state were closed ahead of schedule around 2011 to 2012.

In 2011 the government introduced the federal rebate program which provided a significant contribution to the upfront cost of a solar system. At the same time product manufacturers were started to reach significant economies of scale and implementing robotic-automation in factories to steeply drive down the underlying cost of solar panels and solar inverters.

The Solar Choice Price Index tracks prices from Aug 2012 showing the continuing progression of solar panel technology and manufacturing processes driving down the prices presented to end-consumers. With over 300,000 solar power installs completed last year, residential solar is now considered a mass market product.

The Solar Tax Credit: Solars Best Incentive

The best incentive for going solar in the country is the federal solar tax credit, or the investment tax credit . This incentive allows you to deduct 26 percent of the cost of installing solar panels from your federal taxes, and theres no cap on its value. For example, a 10 kW system priced at the national average comes out to $27,600. However, with the ITC, youd be able to deduct 26 percent of that cost, or $7,176, from your taxes. This essentially reduces the cost of your system to the $20,424 price tag we highlighted at the beginning of this article.

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Solar Panel Tax Benefits

For people who purchase and install a solar panel system, the federal government provides a 26% tax credit for solar panel installation through 2022. That credit will lower to 22% in 2023, and there isnt a tax credit for residential solar systems scheduled after that.

For example, you could receive a $5,200 credit on a $20,000 system in 2021 with the federal tax credit alone.

You can take advantage of tax benefits as long as you own your system, no matter how you fund it.

The federal tax credit is nonrefundable, meaning if you dont owe taxes or owe less than the 26% credit will get you you wont get that money back in a refund. You can, however, carry the credit over to a future tax year.

Some states also offer tax benefits and other incentives for solar installation. You can look up your states offerings in the Database of State Incentives for Renewables and Efficiency.

Solar Panel Installation Cost In San Antonio

How Much Do Solar Panels Cost?

The size of a solar panel system also plays a role in how much the installation will cost.

Larger solar installations will typically have a lower cost per watt, because the panels can be purchased at a bulk price. However, these larger solar systems will still have a higher total cost, because they are made up of more individual panels.

Table 2: Average cost of residential solar systems by system size
System size*

Also Check: Are Solar Panels Tax Deductible

How Can You Find The Right Solar Installation Company

At SolarReviews, we recommend going with a reputable local solar installer. Generally, youll want the installer to meet these requirements:

  • Been in business for over 5 years
  • Hires their own installation crew
  • Has between 15 and 20 employees
  • At least one NABCEP-certified installer

But remember, you also want to make sure the company is charging a fair price for their services. If its too cheap, you might have to worry about a shoddy installation or low-quality equipment. If its too expensive, you might be paying an extra premium for no added benefits.

You need to find a happy medium of a solid price from a trusted company that uses high-quality materials. The best way to connect with companies in your area is by using our state-of-the-art solar calculator, which will not only give you a detailed cost and savings estimate catered to your specific home, but will also put you in contact with our vetted solar installers.

Learn more: Guide to the top-rated solar installers in your area

Your Ideal Rate Of Return

Your ideal rate of return will affect how you calculate the cost of commercial solar panels.

Your ideal rate of return, or hurdle rate, is the minimum rate of return you require for new investments. It assumes not only that you have choices in where you invest your money and want to achieve the highest rate of return that is reasonable for you to achieve.

Knowing your hurdle rate helps you choose the best investment when there are multiple investments to choose from.

But what is your ideal rate of return (also called a hurdle rate?

A venture capital investor might want a return of at least 30% whereas your average stock market investor might be happy with historical rates of return.

Some common rates of return for the historical stock and bond markets and high-yield savings accounts are below:

  • Stock Market Historical Rate of Return: 11.69%
  • Bond Market Historical Rate of Return: 5.5%
  • High Yield-Savings Account: 2.35% 9

Knowing your hurdle rate lets you compare that rate of return to an investment in commercial solar energy.

To do this you simply estimate what the future value of an investment at your hurdle rate would be over the length of time you would be investing in solar.

To do this you use an investment calculation called Net Present Value.

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Cost Of Solar Power Systems For Homes Farms And Businesses

Installing a solar power system in Saskatchewan is one of the best ways to save money, reduce your carbon footprint and add equity to your home, business or farm. Federal tax incentives for businesses along with the ability to sell back excess energy to the grid make solar panels an incredible vehicle for generating income.

Solar power is good for your grandchildren,great for your bottom line.

This article will provide the complete guide to installing solar panels in Saskatchewan and will go over how solar panels work, how many solar panels you need, the cost of solar panels , as well as frequently asked questions such as how solar panels work in the snow and winter.

How Many Watts Do You Use

Solar Panel Costs

When looking at your utility bill, you should be able to see kilowatt-hours . KWH for homes can vary greatly depending on location. A home in the south is more likely to draw massive amounts of energy from air conditioner units.

Finding the average daily energy usage will help you calculate your solar needs. Once you have your usage you can look at how much wattage youll need to be able to run everything.

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Solar Panel Maintenance Cost

Solar panel systems usually require very little maintenance. Two or three times a year, they should be inspected by a solar panel company. A general solar panel maintenance averages $400. Some warranties require twice-a-year inspections, while others require more frequent maintenance. The panels need to be inspected and cleaned on a fairly regular basis. The technician will also inspect all the components to ensure everything is functioning properly.

Also, there may be other maintenance required on an as-needed basis. This can include replacing brackets or fixing the glass on the panels if it breaks.

If You Have A Large House This Article Will Tell You How Many Solar Panels You Need To Power It

Homeowners interested in going solar often want to know how many solar panels it will take to power their house.

The most accurate way to find that out is to get a professional solar installer to perform an analysis on your home. A quick but somewhat less accurate way is to read your monthly electric bill and use our solar calculator to determine what your power generation and estimated system price would be.

Using the calculator takes only a minute, but if you simply want to know how many solar panels it takes to power a 3,000 sqft house based on the average electricity usage across the nation, here it is. According to the Energy Information Administration , the average house in the United States that is 3,000 sqft or larger in size uses 14,214 kWh annually, or 1,185 kWh per month.

If that house has a south facing roof without any shading during the day, it would need anywhere between 19 and 30 premium solar panels to generate that much electricity. In this case, âpremiumâ refers to solar panels with an output rating of about 400 watts, which are the highest efficiency panels currently available. These include, for example, the SunPower A Series and LG NeON 2 series.

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Feed In Tariff Scheme:

As of the 31st of March 2019 the feed in tariff no longer exists. Currently, you can make money from any unused electricity by selling it back to the National Grid.

Now that the Feed in Tariff has ended there are two other options:

The first is a battery which will store the unused electricity and means that you can run off grid depending on the amount you collect and use.

The second is the Smart Export Guarantee introduced by the government which means that energy suppliers will compete to give households the best price for their excess electricity. Homeowners will still see a long-term payment and faster return on their investments.

It is true that solar panels will never be cheap, but never the less, they are a good investment. Annually you can expect to save between £85 to £500+ on your energy bills depending on how much power you use daily and how many people live in your household. Those eligible for the FIT payments will save more money every year for 20 years. Even without FIT payments or when the payments end the power produced by your solar set up will be free.

Old feed in tariff rates:

If you were lucky enough to sign up before the 31st of March 2019 you would have received these payments. If you have a property which has an EPC of D or above, the FIT rate was 3.79p at scheme end. You can find the rates on the Ofgem website.

Once receiving the FIT, you would have continued to receive it for 20 years.

Approximate Costs Of Solar Systems After The Rebate

How Much Do Solar Panels Cost?

The range of prices in Australia below is mainly down to the quality of the hardware used in the installation. To use a car analogy , expect the lower price range to be Kia level brand and the upper cost to be a BMW level brand. Ill leave you to decide if BMWs are worth paying more for than Kias!

Approximate cost of a good quality solar system installation with Tier 1 solar panels as at August 2021 in Australia:

System size
27 $8,000 $12,000

Note that the above assumes the use of 370W solar panels, so the final solar panel capacity may be a bit more or less than the figures mentioned above.

See Real-Time Australian Solar Pricing

The costs quoted above are based on thousands of data points. To see real-time, average prices being paid for full system installations of various capacities in your state, check out the SolarQuotes Solar Price Index.

Microinverter/Optimiser Cost

If you want a good quality microinverter or optimiser system installed, expect to add around 20% in cost to the above price ranges.

Budget Inverters

If you want to downgrade to a reputable budget inverter , you may be able to save about $700 on these prices.

Finding The Money

You may be looking at those prices and thinking: Wow, thats a lot of money to find!, even with the rebate. I agree. Which is why it is important for Australians to understand the payback and cashflows involved with solar panels, so you can assess if the cost of an installation is going to be a worthwhile investment for you.

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Solar Panel Return On Investment

The ROI on solar panels varies from project to project. The system size and cost of electricity in your area play a role in how fast you recoup your costs. In general, most people find a return on investment of 20% the first year and a full recoup within 7 to 10 years. There are often local and federal incentives, which can lower your overall costs and help you realize a 100% ROI much faster. These vary by region and installation type, so contact your local authorities to find out more.

How Much Will Solar Panels Cost To Install On Your Specific Home In 2021

The cost to install solar panels on your specific home in September 2021 will vary depending on your location, your energy usage, the brands of equipment chosen, and whether it is a DIY installation or a job done by a professional solar company.

Since more than 95% of homeowners choose to go with a reputable local solar company, our solar calculator below shows estimates for professionally-installed systems in your area.

$28,860

*Based on 350-watt panels

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Fast Payback On Additional Kws

The cost of increasing the size of the system to 5kW is only $657 per kW. If we assume that you receive a feed-in tariff of 11.1c for every kWh you export back to the grid, it will only take 4 years to pay back the extra 2kW this is assuming that all of the additional solar power output is exported back to the grid. If you self-consume the power, it will pay back much faster. You can expect the panels to continue generating solar power for another 20 years.

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