Solar Cost Is Lower Than It Has Ever Been
Solar panels are converting more and more of the energy from the sun into electricity for a home than ever before, meaning you need fewer panels to generate the same amount of energy.
The first silicon solar cell, introduced in 1941, was reported to have had less than 1% energy conversion efficiency. Due to the many recent advances in solar cell technology over the past five years, average panel conversion efficiency has increased from 15% to 20%!
The more energy that is converted by a single panel, the fewer panels a home will need.
The average nameplate power output of a standard 72-cell multi-silicon module was around 290 watts in 2010. Today, consumers can expect at least 345 watts, at one-tenth of the 2010 price.
The upshot is that an average-sized residential system has dropped from a pre-incentive price of $40,000 in 2010 to roughly $20,000 today!
Example Of How Much You Can Save
This example uses a typical family home that has a $201 power bill in a month. They have installed a 3.7kW Harrisons Solar Power System that has 10 premium LG long lasting and high power solar panels with a top quality Fronius inverter.
Their power bill has been slashed monthly – even more, as retail power prices continue to rise, they are saving $50,129 over the 25+ year product/performance life of the system.
Get Paid 16c Per Unit For Your Extra Solar Generation
Install your solar with Harrisons and switch your power to Trustpower on a 24 month term, Trustpower will buy back your extra solar generation at 16c per unit . Maximum of 500 units per month and is guaranteed for the life of the 24 month contract.
Well also install an export meter, required to export your extra solar power to the grid, for free.
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Additional Considerations And Costs
- If you cannot go completely off-grid, you can still benefit from installing solar panels. The technology becomes cheaper every year. Zero-down loans are available so that you start saving on electric bills right away even as you pay off the loan. Tax rebates and credits are also available to offset the cost.
- If you live in an area prone to power outages or failures, going off-grid can be beneficial.
- Not every off-grid system has the same warranty. Check with the manufacturers to find out their warranty policies.
- Care and maintenance for each system vary by manufacturer as well. Always check the manufacturers guidelines for best practices.
- You may need a permit for this project, depending on where you live. Check with your local government for more information.
How Much Do Solar Panels Save
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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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!
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 Incentives And Tax Credits Are Available
A one-time Residential Renewable Energy federal investment tax credit is available for residential solar PV systems. The credit is based on a percentage of the total solar PV system cost. If the system is placed in service before Dec. 31, 2019, a federal tax credit of 30% of the total system cost is available. After Jan. 1, 2020, the tax credit will start to decline.
Federal Investment Tax Credit
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When Might You Pay Less Than 5300
On the other hand, if everything is in your favour, you may pay as little as £4,800 for a 4 to 4.5 kWp system.
Conditions conducive to a low price include:
- Bungalows with easy roof access, meaning scaffolding costs are lower.
- A big roof allows you to use lower capacity panels which are cheaper.
- Concrete tiles are easier and cheaper to install on than slate or clay tiles.
If you can then find a local installer who is fair and reasonable with their pricing, you are on to a winner.
Beware, though, if the price is too low, lets say close to £4,000. It may be the installer is cutting corners to get the price down that low.
For example, they might be:
Choose Long Lasting Quality Equipment
Choosing high quality panels with a 25 year performance warranty and 25 year product warranty, like LG, will mean the panels will last longer, and the savings are higher. There is also less risk of anything going wrong that would cause replacement costs, or worse, damage to your home.
LG provides around double the warranted power generation compared to many alternative brands. So with LG there is peace of mind that year after year the system generates what youve paid for.
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What Are The Labour Costs
When you are given a quote for your solar panel system, labour costs are typically included. There are two common ways of calculating the labour costs for solar panel installations in the UK.
One way is to calculate approximately £300-£500 per person, per day. As it usually requires two people to install the system, a final installation fee is normally £600-£1,000. If you are installing a larger system, it may take more than one day and the costs will naturally rise.
Another way to calculate the installation fee is to charge 20 pence per watt. So, for a 4kW system, you would be paying 20 pence for 4000 watts, resulting in £800.
What Is The Right Price For A Solar Panel Installation
The SolarReviews Editorial team believes a fair price for a professionally-installed solar system in 2021 is between $2.60 per watt and $3.20 per watt.
If you are being charged more than that, there are probably better offers available. However, if you are paying less than $2.60 per watt, you may run the risk of getting a low-quality installation or sub-par customer service. Not only that, solar companies that charge such low prices probably wont be able to earn enough money off of their sales to offer you the customer support you need for the 25-year lifespan of your solar panels.
Above all, you want to go with a solar company that has a good reputation and will be around for the long haul.
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Solar Panel Cost By State
As interesting as it is to look at the average solar panel cost in the United States, its also very helpful to understand what solar will cost in each state, as prices can vary significantly depending on where you live. Why? There are a number of reasons, but one important factor to keep in mind is system size.
In general, states where homeowners need to use air conditioning more often have more average electricity used per household. As such, some of the largest solar panel systems are installed in sunny, warm states like Arizona and Florida. Why does this matter? For solar installers, the larger your system, the less they will usually charge per kilowatt-hour . Its like buying in bulk at Costco you might pay a higher sticker price, but your per-unit costs are lower when you buy more at one time. Well dive into this phenomenon more below.
Back to solar panels. In the end, this very roughly translates to lower $/W pricing in warm states and higher $/W pricing in cold states. But in the end, total pricing is usually close to a wash warm states have a lower price per watt, but larger system sizes, and cold states have a higher price per watt, but smaller system sizes.
Cost of solar panels by state
|$14,160 $16,800||$23,600 $28,000|
How Much Will The Whole Installation Cost Me
While it can be useful to know the price per solar panel, the real price comes from the entire solar power system and the installation. We are not a DIY-focused site, so for this cost analysis we are going to focus solely on installation costs through a certified solar installer.
Beyond just the cost of solar panels, there are many costs that go into a full-scale solar installation on your home. Here is a quick breakdown of all the costs that go into an installation:
- 25% Solar Panels
- 45% Operational Costs
We will do a future post with a full breakdown of these costs, but what is the actual cost of a solar power installation on your home?
Lets start by looking at the average installation. The average installation on an American home is a 5 kilowatt system. For 2020, the average cost per watt of solar systems in the US is $2.96 cents.
So lets do the math! If we multiply 5,000 watts by $2.96, we get $14,800.
But wait, dont forget about the Federal Solar Investment Tax Credit! With this credit , you save 26% of your total solar installation cost through a tax credit. When we take this 30% credit out of $14,800, we arrive at $10,952.
The average cost of the average solar system in the United States is approximately $10,592 after available tax credits.
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What Impacts The Cost Of A Solar Panel Installation
Theres a lot that goes into the sticker price a solar installer charges you for your individual solar panel installation. Solar installations are a unique product: the price you pay is heavily dependent on your unique situation and factors related to your electricity use and property. Here are some of the top factors to keep in mind that can and do influence the cost of solar panels for your property:
Finance Options For Solar Panels
There are a number of companies offering finance for solar technology in the United Kingdom. Finance, in the form of loans and leasing agreements, is available for domestic, commercial and industrial installations, in both the private and public sectors. Finance for renewable energy technologies allows customers to avoid large upfront costs and make payments out of the income from any Feed-in tariffs, as well as energy bill savings.
Finance may be offered on a range of bases, each offering varying levels of financial risk and reward, as well as varying interest rates. Typically, the finance company will provide the money to fund the cost of installation in return for payments spread over a period of time. Depending on the type of agreement, the client will most likely own the technology from the outset.
The arrangements offered by finance companies will vary, and each company will offer different advice. It is therefore advisable to obtain quotes and agreement terms from a range of companies. They should be based on clients energy needs and financial situation. Caution should also be taken when calculating ones ability to make repayments, as the returns offered by some renewable technologies depend in large part on the weather. Remember that if using finance arrangements this may impact on your future benefits and savings from having the solar panels and this should be carefully considered.
Look Here for some UK companies offering finance for renewable technologies.
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How Does Solar Energy Save Money
If your average monthly electricity bill is high, and youre living in an area with high energy rates then its worthwhile installing solar panels in your home while the 26 percent tax break is in place. It is not only amazing for your wallet but also good for the environment. Here are a couple of reasons why you should invest in solar panels:
- The price of energy is not dropping
- The cost of installing solar panels has improved and prices have fallen
- Installing solar panels provides a long-term subsidy benefits
- Save money on your pension by reducing energy costs on your monthly electricity bill
- Solar panels are long-lasting and require little upkeep
Solar Panel System Costs In : Average National Pricing
On average, a 10 kilowatt solar panel installation costs $20,424 after taking into account the federal solar tax credit .
What is the average cost of a solar installation? For a 10 kW solar panel installation in the United States, quotesrange from $17,612 to $23,236 after taking into account the federal solar tax credit .
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Estimate Residential Solar Panel Cost
The brunt of the expense with solar panels is in installation and the purchase of the actual panels.
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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.
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.
How Much Power Does A Solar Panel Produce
If your electricity bill is too high, you may be interested in solar power. Many homeowners are installing a solar panel system as an environmentally friendly way of cutting down the cost of electricity.
However, if youre considering a solar panel installation, you may be wondering how much power a solar panel can produce.
When you browse around and look at different solar panels, you may notice that the panels will have watts. The most common numbers you will likely see listed are between 245 W and 400 W.
The solar panels wattage will help you determine how much energy it can produce.
On this page, we will discuss solar panel output and how much power it can produce. First, we will help you determine how much power your solar system is producing.
Then, keep reading for more information.
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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.