Thursday, May 16, 2024

How Much Should I Pay For Solar Panels

If You’re Likely To Move Home In The Next Decade It Probably Doesn’t Add Up

Buying Solar panels to save $$$$

As it takes typically more than 10 years to recoup your installation costs, if you’re considering moving it’s probably not worth it .

While you could physically remove the panels from your old home and install them on the new one, this could prove costly. Plus, while you could still use what you generate yourself at your new address, you’d no longer get paid for what you export. To receive payments your panels need to be certified by the Microgeneration Certification Scheme and the organisation told us it wouldn’t certify panels that have been moved.

It’s also worth noting solar panel installations are tailored to each home to fit the roof and be positioned to maximise the level of sunlight they receive so it’s likely they wouldn’t perform as well if you installed them on a different home anyway.

You Need To Know How Much You Pay On Your Electric Bill

This estimate assumes you will get all of your power from solar. While some homes will be able to get 100% of their electricity from solar, or even sell some surplus energy back to the grid, others will still have an electric bill to supplement usage. This will vary widely from home to home, depending on how many solar panels are installed, normal energy consumption and more. Get more tools to calculate your home’s potential savings here.

Now you have a sense of how much energy you’ll save, login to your electric utility company account and calculate an average of your last several electricity bills. Go back at least six months, if possible, to account for seasonal temperature changes and other fluctuations in cost. Let’s assume you get 100% of your usage from the panels and currently pay an average of $125 per month in electricity bills, or $1,500 per year. Now you have the information you need to estimate the payback period for solar panels.

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.

Read Also: How To Get Solar Panels

Cost Of Solar Panel Maintenance

In general, solar systems are designed to run smoothly for decades without requiring much maintenance or upkeep. However, even the best systems require routine solar panel cleaning and checkups as grime, dirt and debris can accumulate over the solar cells.

Any sizable costs associated with malfunctioning panels should be covered by your panels warranty, but its not a bad idea to factor in the costs of a simple few cleanings and occasional maintenance.

Approximate Costs Of Solar Systems After The Rebate

How Much Energy Do Solar Panels Save?

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 November 2021 in Australia:

System size
27 $8,000 $12,000

Update: November 2021 There have recently been major disruptions to solar panel supply , which have pushed prices of 6.6 kW systems up by about $1,000. Current prices of panels are fluctuating daily so dont be surprised if your quotes are only valid for a few days.

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

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Affordability Without The Compromise

Unbound Solar doesnt just sell high demand solar equipment like most online solar suppliers Our seasoned technicians will guide you through the entire design process & beyond with guaranteed lifetime support. Were here to make sure your system is compatible, code-compliant, and sized to suit your needs for the next 25+ years.

Google Phil Eichar.

Our Process Is Built Around Your Success:

Are Solar Panels A Ripoff

Solar energy is a safe, clean and affordable electricity for your home. Read also : Solar Power Energy. Recent advances in the production of photovoltaic panels used in the conversion of free solar energy from the sun have made solar energy in the home a viable option for many consumers, not it is a SCAM.

Does it matter if they say yes or no? The answer is yes if you connect to the sequence. You see, even in some states like New York, New Jersey, and Massachusetts, the local incentives with the highest electricity prices are four. save the sun financially. However, for the most part, if your home is installed on the internet, the sun is useful in the long run.

Read Also: How Many Solar Panels To Run Pool Pump

How Much Do Solar Panels Cost

Solar panels are a considerable investmentnot just for the sake of your community and planet, but for your homes value. Various factors influence how much a solar system costs, including the panels you choose, your homes energy needs, and applicable state and federal tax incentives.

We have conducted in-depth research on the best solar installation companies in the United States and the industry overall. This guide breaks down the significant factors that influence what solar panels cost, as well as the national average for a solar energy system.

Find Top Solar Installers Near You

Hawaii Solar Panel Costs

How Many Solar Panels Should You Buy?

The average cost of residential solar panels varies by system size: the more solar panels you buy, the better bulk price per watt.

SolarReviews estimates the average cost of solar panels for a 6kW system in Hawaii to be $2.67 per watt as of April 2022. This is lower than the U.S. average for residential power systems, which cost $3.00 per watt.

After applying the 26% Federal Investment Tax Credit, the average 6kW solar system cost in Hawaii is about $11,837. Although, your net price will look a lot higher before taxes, it will likely end up being much lower with other state and local incentives, including the Hawaii Energy Tax Credit that allows individuals to claim up to 35%, or up to $5,000 per 5kW system, of the cost of the equipment and installation of a residential solar system.

Beyond the equipment and installation fees, the cost of solar additionally includes permitting costs, inspection costs and installer profit margins, which will vary by region and company.

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In Conclusion: Are Solar Panels Worth It

At the end of the day, the cost of solar is only as important as the return youll get from installing solar panels. For most homeowners, solar is a worthwhile investment, and you can break even in as few as 7 or 8 years. From that point on, youre essentially generating free electricity and racking up the savings. During those 7 to 8 years, youll be generating your own electricity instead of paying for electricity from the grid, and any extra electricity you produce you might be able to get credit for thanks to net metering policies .

Of course, just like the cost of solar panels varies by state, your payback period with solar will also vary depending on where you live. As a general rule, places where electricity is most expensive will lead to the most lifetime savings from a solar panel system. Check out our article about electricity rates and solar savings for a more in-depth explanation of how this actually works.

You can read more about the payback and cost-benefit of solar in our article, Are solar panels worth it?. Or, head to our solar calculator for an instant estimate of your savings potential!

If You Already Have Solar Panels And Get The Feed

If you already have solar panels and get the feed-in tariff, the closure of the scheme won’t affect you. Depending on when your panels were installed and certified you’re guaranteed to get the payments for at least 20 years:

  • 25 years if installed and certified before 31 August 2012
  • 20 years if installed and certified between 1 September 2012 and 31 March 2019
  • Also Check: Does Solar Increase Property Value

    Post Sale Lifetime Support

    We’ve been supporting our customers’ solar installations for nearly 30 years. With Unbound Solar, you can trust the security of your solar investment with free lifetime support for decades to come.

    We are Real People that Want to Help You Power Your Own Way.

    We are Unbound Solar, a 100% employee-owned company in the Pacific Northwest. We play guitar. We ski and snowboard. We go biking. We mountain climb. We hunt & fish. We hike. We swim and surf. We love visiting new places and exploring everything around us. We are here to help for a lifetime.

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    Is There A 500 Watt Solar Panel

    What you need to know when going Solar in Perth

    What is a 500- watt solar panel? Among the most innovative of the solar industrys developments in recent years is the 500- watt solar panel. The 500- watt solar panel was designed to meet the energy output needs of medium and large solar systems using fewer panels, ultimately increasing efficiency and lowering costs.

    Recommended Reading: How Many Watts Do I Need For Solar Panels

    How Much Does A Single Solar Panel Cost

    If youre looking to buy your own solar panels and install them yourself, you can expect to pay somewhere between $200 and $250 per solar panel. That doesnt include other costs, like inverters, wiring, and installation, which is why the cost of a full solar panel system installation seems much higher.

    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.

    Read Also: How To Wire In Solar Panel To Home

    How Much Does It Cost To Install Solar Panels

    The average cost to install solar panels in the United States is about $12,000 after federal tax incentives. On the low end, you can install a smaller system for around $5,000, while a high-priced Tier 1 solar panel system can cost $40,000 or more.

    There are additional costs that go into an installation project beyond the price of panels. In fact, only about a quarter of the installation costs are actually for the panels. Labor costs, operational costs and additional equipment, such as inverters and control circuitry, make up the rest of the price.

    Solar energy companies install the solar panels, provide maintenance and offer warranties on both the panels and the work. These additional services arent free, but they are often worth it. A few additional factors affect the price of solar panel installation.

    How Much Do Solar Panels Save

    Doubling My Solar Power from 1kw to 2kw! Much Better.

    Switching to a solar energy system could potentially cut your energy bill by 75%. The savings you and your family see will depend greatly on where you live, what the climate is like and your particular energy needs. For instance, an average homeowner in Portland, Oregon, will see total savings of $38,000, whereas a homeowner in Los Angeles could save as much as $90,000 over 20 years.

    Many solar energy companies provide a free calculator tool to help you easily estimate the cost and savings of installing solar panels on your home. Different solar calculators may estimate electricity costs in different ways. Numbers can be based on the national average, regional averages or other information you provide.

    The average American electric bill is between $100 and $200 per month, and the average yearly energy cost is about $1,500. Depending on how much you pay out-of-pocket for the solar panel system, it could take five to 15 years to break even. To calculate how long it will take you to break even on savings versus the cost of your solar panels, first subtract your incentives and rebates from your costs. Divide that number by the amount you are saving on utility bills per year.

    Even if your solar panels generate 100% of your electricity needs, you may still receive a utility bill. However, instead of asking for payments, you will get net metering credits for the month.

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    Solar Incentives Rebates And The Federal Tax Credit

    The great thing about installing solar panels is that it earns you a big tax break at the end of the first year. If your solar panels are fully connected and operating before January 1st, 2023, you can claim a tax credit equal to 26% of the total installation costs.

    Many states offer additional solar incentives like solar rebates and performance-based incentives, as well.

    Subtracting the dollar amount of available incentives from the total system cost gives you your net cost of solar panels.

    Example 3:

    Our friend in Bakersfield is in a great place for solar. In fact, California is so great that many early incentives that were needed to jumpstart the industry are no longer available.

    For example, most rebates for home solar in California ended before 2014, but helped bring solar costs down for everyone by getting the industry going. But have no fear! The 26% solar tax credit still applies.

    The 6-kW system in question would earn its owner a tax credit of $4,446 based on our estimated upfront cost of $17,100. That means the net cost of the system is just $12,654. Thats the number well use to start subtracting energy bill savings from.

    Total System Cost Before Incentives

    The next step is determining how much your system will cost. This number represents the final price of a solar installation before considering incentives like the federal solar tax credit. It is the number well use to begin subtracting savings from to determine the payback period.

    Example 2:

    As of April 2021, the national average cost of a 6 kW home solar system is about $2.85 per watt, or $17,100, before incentives. The homeowner in our example will either need to pay cash or take out a solar loan for around that amount.

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    S Of A Solar Energy System

    In this chapter, were going to break down the parts of a solar energy system. If youve ever wondered, How do solar panels work? this ones for you.

    Including:

    Understanding the components of a solar system is like geeking out on the latest tech gadgets. Moreover, theres great things to come from understanding how solar panels work. Knowledge is power and you can answer tons of burning questions, like Do solar panels get hot? Or maybe, Do they work on cloudy days? Answer these questions with ease once you learn more about solar energy.

    If this doesnt appeal to you, skip over this part, but dont miss the pro tips at the end of the section. For those curious tech hounds, lets dig into the parts of a solar panel system.

    What To Look For In An Unsecured Solar Loan

    How Much Are Solar Power Systems

    Unsecured loans with low rates and short repayment terms can help you pay off your solar panel system quickly. In contrast, you may be making smaller payments on a home equity line of credit for 10 or more years.

    Annual percentage rate: The APR is the total cost of your loan, including interest and fees. Rates on personal loans range from about 6% to 36%, with the lowest rates reserved for good- and excellent-credit borrowers with little other debt. The APR can help you make an apples-to-apples comparison between personal loans and other financing options.

    Fees: Some lenders charge an origination fee, which can be 1% to 6% of the cost of the loan, and is usually taken off the amount youre given.

    Term: The amount of time you have to repay your loan helps to determine your monthly payments. With longer repayment terms, you have lower payments but youll pay more total interest.

    Use a solar loan calculator to see how the loan’s rate and term affect monthly payments and overall interest.

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