The Cost Of Solar After Installation
Its not talked about as much, but one thing to keep in mind about the cost of a solar panel installation is the cost to keep and maintain that system. In general, solar panels require little to no maintenance over their lifetime, and you shouldnt expect to shell out much money at all once your panels are installed and operational. Theres always the off-chance something happens thats not covered by your warranties, however. You may need to trim trees as they grow, or hire a cleaner if you live in an area of the country with abnormal air pollution. Learn more about what you could run into post-installation in our article about the costs of solar panels after theyre installed.
Other Types Of Solar Loans
Some solar companies offer financing through third-party lenders. These loans can be similar to home improvement loans unsecured with no down payment required. The payment plans could have lower rates than personal loans and longer repayment terms, making your monthly payment lower.
Compare a quote from your solar company with other options to find the most affordable one.
Home equity loan
If you already know how much your solar panels will cost, you can apply for a home equity loan. These loans have lower rates and longer repayment terms than unsecured loans because putting up your home as collateral reduces some of the risk for a lender.
Home equity line of credit
A HELOC is another low-rate option that is secured by your home. Its more flexible than a home equity loan because you can draw on funds as you need them for the project, and you often have the option to only pay interest during the initial portion of the loan.
If youre considering a home-equity option, learn the pros and cons of each before you choose.
A cash-out refinance can get you a new mortgage at a lower rate that includes the cost of solar panels and installation. Its a good option if current mortgage rates are lower than what youre paying and if you can keep closing costs low.
Leasing or getting a power purchase agreement
The U.S. Department of Energy has more details about the difference between a lease and power purchase agreement.
What Is The Base Cost Of A Solar Panel System Installation
Costs for solar energy systems have come down substantially over the past decade. A fully-installed system in 2008 could run you about $40,000 now, prices are only a fraction of that amount. The cost for a solar system starts around $5,990.
While thats a rough idea of what a homeowner could pay, costs vary. Its important to talk to solar consultants to learn exactly how big a system you will need. Solar experts can design a system thats unique to your homes wiring and other features, and that will yield the best utility savings and ROI possible.
The Question Of Warranty
Many buyers will also want to know about the warranty on the solar package, especially if theyre not incredibly thrilled to be stuck with solar in the first place. Zaragoza mentions that you should always ask your solar provider what will happen to your warranty if you decide to sell the home. Knowing that you can transfer the warranty to new owners offers them a big peace of mind, and if this isnt possible, then this might be a reason to reconsider the purchase or lease agreement.
Pros And Cons Of Solar Panels For Your Home
Like most things, solar power has its benefits and drawbacks. At the same time, some economic costs may be defrayed by the social benefits to the environment and lowering your carbon footprint, which exceeds pure monetary evaluation.
Green energy that lowers your carbon footprint
Net metering allows you to sell back excess energy produced
You may be eligible for certain tax breaks
Installation and maintenance costs still high
Solar only works when the sun is out
Parts of the system need to be replaced every few years
Some tax breaks may have expired or will be expiring
Is It Still Possible To Make Money From Solar Panels
The Feed-in Tariff scheme which entitled solar panel owners to earn money for the energy generated by their solar PV system unfortunately closed in March 2019. At the time, a replacement scheme hadnt been lined up but now we have the Smart Export Guarantee .
Through the Smart Export Guarantee anyone generating their own electricity with a solar PV system smaller than 5MW can once again earn money. The scheme works differently to the FiT, in the sense that energy suppliers set their own tariffs Compare Smart Export Guarantee Tariffs.
In addition to SEG payments and saving money on your energy bills, if you decide to move out of your home then by installing solar panels you will have added value to the property. This is because, not only do they require little maintenance, they also mean that the potential buyer will be able to benefit from lower energy bills.
How Many Kwh Can Your Solar Panels Produce The Complexities Of Production Ratios
The amount of power your solar energy system can produce depends on how much sunlight exposure your roof receives, which in turn creates your production ratio. The amount of sunlight you get in a year depends on both where you are in the country, and what time of year it is. For instance, California has more sunny days annually than New England. But in either location, youll be able to produce enough power to cover your energy needs and say goodbye to your utility billsif you live in an area that gets less peak sunlight hours, youll just need to have a larger solar array system installed at your home. Thus, production ratios differ according to geographic location and a lower production ratio means youll need more solar panels to get the amount of energy production you need.
How Many People Are Having Solar Panels Installed
Residential solar panel installations saw a huge peak in the 2015/16 financial year, with 95,122 0-4kW solar systems installed. Installations have dropped off a bit since then but are beginning to rise again with 32,370 installed in 2018/19 compared to 19,708 the year before.
With prices at a much lower level than they were around 10 years ago, its no surprise that the number of installations is beginning to rise again. If youre interested in generating your own renewable solar energy then you can get free quotes from up to 3 solar installers using Solar Guide. All you have to do is complete our simple online form.
And Finally Lets Do Out The Math
We have our three main assumptions now how do those numbers translate to an estimated number of solar panels for your home? The formula looks like this:
Number of panels = system size / production ratio / panel wattage
Plugging our numbers in from above, we get:
Number of panels = 10,649 kW / 1.3 or 1.6 / 320 W
which gives us between 20 and 25 panels in a solar array, depending on which production ratio we use . 25 panels each at 320 W results in a total system size of 8 kW, which is right around the average for EnergySage shoppers looking for a solar installer. Tada!
Why Doesnt My Solar Energy System Offset 100% Of My Solar Energy Needs
The short answer is because your habits may have changed since getting solar. We used your utility bill to custom design a solar energy system that would meet the energy needs of your household. If you suspect that your system isnt producing enough energy, its possible that youve started consuming more energy since activating your solar energy system. Additional energy consumption is often the result of new appliances or consumption behaviors, such as:
- Getting a pool or hot tub installed
- Running heat or air conditioning for longer periods of time
- Getting an electric vehicle
- The introduction of medical devices
- A new person living in your home
All of these things have an impact on your electric bill, so you end up pulling more from the electric company because your solar panels cant keep up.
State Solar Panel Rebates & Deductions
Individual states and cities offer their own policies, incentives and credits, as well. Some utility companies will even offer 10 to 20% rebates on your installation. With these incentives, combined with the ITC, you may be able to save as much as 50%.
- Washington: Utility companies offer rebates up to $2,000
- Massachusetts: Utility companies which offer rebates of $0.50/watt and up to $625/kW.
- New York State: Tax credit of 25% for PV systems.
- Florida: Permanent sales tax exemption for solar energy products. Also several utility companies offering $500 rebates on solar water heating systems, which cost an average of just over $3,500.
Leave Solar Panel Installation to the Pros
What Impact Does Adding A Battery Have On Solar Panel Cost
Here is the number one, first thing you should know about batteries:
Just as the cost of solar panel installation has drastically diminished over the past few years, the price of the type of lithium-ion batteries used in solar installs has fallen by about 80% over the past five years!
In addition, work is ongoing to make battery technologysafer, more powerful and more accessible, bringing a carbon-free energy system ever closer to reality.
Moreover, when evaluating the cost of adding a battery to your home solar system, you need to think about the additional benefits you get compared to getting energy from your utility, or even from a solar-only system its not necessarily an apples to apples comparison more like apples to oranges.
Unlike a solar-only system or traditional utility energy, a battery enables you to power your most needed lights and appliances during a power outage, and will also protect your from rising peak utility rates. Now those are two distinct advantages that homeowners can appreciate! See how long a home battery backup can power your home with our home battery backup calculator.
In fact, homeowners, and businesses as well, are increasingly demanding solar systems that are paired with battery storage. While this pairing is still relatively new, the growth over the next five years is expected to be significant. By 2025, more than 25% of all behind-the-meter solar systems will be paired with storage, compared to less than 5% in 2019.
What Happens To The Solar Panels If I Move Out
If you get solar panels installed and later decide to move home, you can’t take the panels, smart export guarantee or feed-in tariff payments with you.
Solar payments are paid to the owner of the property where the solar panels are installed, so normally when you move, the new owner will receive the payments.
While you could physically remove the panels from your old home and install them on the new one, you still wouldn’t receive payments, as the panels would be considered ‘second-hand’ and so not eligible for the scheme.
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.
Owning Vs Leasing Matters
While this might not be at all obvious to the unsuspecting homeowner, theres a big difference between owning and leasing your solar panels especially when its time to sell the home later on. Were guessing the solar company mightve left this detail out, as they like to say leasing is one of the cheapest and easiest ways to acquire a solar package but the truth of the matter is that if you did lease your solar package , this complicates selling your home quite a bit.
Possible Reasons For Adding More Panels
There are a few different reasons that someone might want to augment their solar system with more panels, and many of them overlap. Weve detailed a handful of them below.
- You have an oversized inverter that was installed with your original system, and youre ready to fill out the remaining capacity.
- You recently lost access to a premium feed-in tariff and want more solar capacity.
- You still have free space on your roof and want to take advantage of it.
- You want to add battery storage and need extra panels to increase your energy independence.
What Is The Roi On Solar Panels
You can calculate the return on investment for installing solar panels by calculating your total payback. Calculate the amount you spent to install a solar panel system and then figure out the amount you will save on energy bills monthly. These two numbers show how quickly your savings will cover your initial costs. Electricity rates will vary by region, being higher in the Northeast than in the Northwest. Solar tends to be more cost effective where electricity prices are high and sunshine is abundant.
40 percent of homeowners
If I Already Have Solar Panels From Another Company Can I Add Vivint Solar Panels To My Roof
Yep. Keep in mind that you will receive three different billsone from your utility company, one from your existing solar provider, and one from us. If you reach out to us, we may be able to reduce the cost of your utility bill even if your current solar provider has a set cost for the energy your system produces.
How Does Solar Energy Work
The way solar energy works and gets stored in the cells of the solar panels is quite interesting.
So, how does solar energy power our homes?
The answer is solar power inverters.
The solar panel converts sunlight into direct current .
But, direct current cannot be used in houses so the inverter converts direct current into alternative current , powering the house with electricity.
However, its necessary to look into different brands and types of solar power inverters before going for installations.
Keep An Eye On Trade Policy
Changes in government trade policy also impact prices. In January 2018, President Trump imposed a four-year tariff on imported solar cells and panels that started at 30% and was set to drop 5% each year until February 2022. In 2020, the tariff rate for the fourth year was raised from 15% to 18%. The tariff resulted in a 16 cent per watt increase for the average consumer in 2018, which translated to an overall increase of $960 for a six-kW system, according to EnergySage.
The cost of foreign-manufactured panels may still drop, lessening the tariffs effect over time.
How Many Solar Panels Are Needed To Power A House
The sun is the most important star in our solar system.
It has been around for billions of years.
One cannot even begin to fathom the existence of life without the mighty sun.
It is the only source that sustains and nourishes life for all living beings.
Since time immemorial, the sun has not only provided us with energy but has also helped the man in keeping track of time and showing direction.
The sun has also helped man use its powerful energy directly in homes.
A lot of research and records indicate that ancient Egyptians were the first civilization to use solar energy in their homes.
Its quite fascinating how the progressive ancient civilization designed and built their homes to store solar energy in the day to keep their homes warm in the night.
With non-renewable sources of energy-depleting rapidly and contributing immensely to carbon emissions, there has been for years research, development, and encouragement for organizations and individuals to switch to clean and renewable sources of energy at work and home.
Sun is the source of one such renewable source of energy that people have actively inclined toward having it installed in their homes in the past decade.
And, they sure have excellent reasons for using solar power.
How Much Is The Average Electric Bill
As of 2019, the average U.S. household spent $115.49 per month on electricity, with the average U.S. resident consuming 877 kilowatt-hours per month, according to the U.S. Energy Information Administration.
Average electric bill costs differ by state, and some states are more affordable than others. Missouri is the most affordable state to power your home, while Hawaii is the most expensive, according to the EIA. Also, according to the EIA, electricity rates are determined by multiple factors including rates charged by power plants, fuel, weather, demand and regulations.
Like a water bill, the rate of consumption and appliance efficiency are fundamental factors in how much an electric bill costs. Other factors, including the size and physical characteristics of your home, influence the overall cost. From an energy perspective, living in a bigger space, such as a single-family home, will usually cost more than living in a smaller space, like an apartment. Running various appliances, notably those that are not energy efficient, can also cause your electric bill to increase.
Estimated Solar Energy System Costs Per Watt
|10kW||$31,500 – $35,500|
Although the per-watt price of installing solar ranges from $2.50 to $3.50, it varies regionally You’ll see the greatest difference between the Southern and New England regions. This does not necessarily mean that it is less cost-effective in New England as opposed to other regions. Different states, even different counties, will have varying returns on investment dependent on other factors.
These factors include:
- Average electricity bills.
- Amount of sunshine expected per day.
Below you will find the average rates of having your system professionally installed, according to region and wattage. These figures do not include any tax credits or incentives. Consider that the average size is 5kW. Hawaii, included in the Western region, has a high rate per watt at $2.85 on average. Georgia, in the Southern region, has a lower rate at $2.53 on average.