How Soon Can The Upfront Costs Be Recovered
A solar system thats properly sized to a home, and used along with solar smart energy-saving practices, can completely pay for itself in a fairly short amount of time.
Typically, for new-build homes, you can look forward to a payback period of 5-8 years, after which youll have fully recovered initial costs and your power savings amount to extra money in the bank. Keep in mind, however, that the payback period is affected by how you use energy at home.
If you use most of your solar energy during the brightest part of the day, and store whats left over in the utility grid or in a solar battery, you can make your payback period shorter.
All said, knowing the costs, the savings, and what payback period to expect makes you an informed solar consumer.
To fully understand the costs of solar for your new home, we invite you to talk to us at World Solar.
Our experts can be by your side as you design your home. We can show you the exact cost of a system for your unique house, what your monthly savings will be, and when you can look forward to breaking even and fully enjoying the returns on your solar investment.
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:
Will It Cost To Maintain Solar Panels Once Installed
Solar PV panels themselves are unlikely to need any maintenance during their expected 25 year life. If a panel fails it should be covered by the manufacturers warranty check the details of this and all other guarantees before agreeing to an installation.
One piece of equipment that probably will need replacing is the inverter this is the box of electronics that converts the solar output into 240V electricity that can be connected to your supply. The inverter is unlikely to last as long as the panels, and will not have the same length of warranty, so you should expect to have to replace it at some point during the life of the system. Expect to pay from around £600.
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Do Solar Panels Really Save Money Do They Pay For Themselves
Yes, solar panels really do save you money. In many cases, panels can save well over $50,000 throughout their lifetime. You can expect your solar panels to pay themselves off after four to eight years. After that, your panels will be making you completely free electricity for the rest of their 25-30 year working life!
The reason that solar savings can add up to such large sums of money is because of the compounding effect of electric rate inflation. If you don’t get solar then the price you pay for electricity will go up, and up, and up over the years. Solar panels are like an insurance policy against increasing electric rates.
While this may sound too good to be true, worry not – solar is not a scam. The other reason why solar panels provide such great savings is because of a utility program called net metering, which most states have, that lets you sell any excess solar electricity your solar panels produce during the day back to your utility company at the same rate you buy electricity at night.
Its important to note that not all net metering policies are created equal, and many utilities are fighting to cut back on net metering programs if they havent done so already. .
Factors That Contribute To The Cost Of Solar Panels
There are many factors that contribute to the cost of solar panels. Understanding the how and why of any cost variance will help you plan your solar installation accordingly. Lets review the elements that impact the overall cost of your solar system and how you can use them to your advantage.
The cost of solar panels has become more and more affordable as the industry grows. In fact, government incentive programs have allowed homeowners to install solar panels at a reduced cost. However, the type of solar panel system, property location, and the size of the system are variables that greatly impact the overall solar panel cost. When you are considering going solar, you should also consider these factors to determine the right system and method of installation for you.
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What Are The Benefits Of Solar Panels
- With energy bills set to rise, taking the annual cost of an average household bill to over £2,500, take control of your energy bills by making the switch to solar energy.
- The cost of solar panels are at their lowest point since 2010.
- They’re an investment that will not only see you rely much less on your energy supplier and receive government payments, you’ll be adding value to your property so all in all while those initial costs may put you off at first, you could soon make it back and begin profiting.
- Store excess energy generation during the day in a solar battery storage system for use after the sun has set compare the Best Solar Batteries.
Find out if solar panels are the right choice for your home in Are Solar Panels Worth It?.
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.
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Other Benefits Of Solar Power
Solar panels can be very liberating. The more youre able to power your home entirely with solar energy, the less you have to rely on energy suppliers. If you can capture all the power you need from the sun, youll be living a life of electricity independence.
Most importantly, youll avoid the price hikes that suppliers often impose on their customers.
In late 2021, around 15 million UK households were told their annual energy bills would increase by £139 to £1,277 per year, as a result of Ofgem lifting its price cap.
These caps are revised every six months, which means that another increase might not be far away. Remember: the sun never increases its rates.
Additionally, a self-sufficient, solar-powered household will avoid any power cuts that hit the National Grid. Since Brexit took effect in 2020, the UK has narrowly avoided blackouts on multiple occasions, as Bloomberg has reported.
60% of the UK’s imported gas comes from the EU and Norway, and 91% of our imported electricity comes from the EU. Brexit has made the nation more vulnerable to supply shortages.
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.
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What Savings Can You Make With Solar Panels
The savings you can make with solar PV panels will depend on where you live and whether you use the smart export guarantee .
In Great Britain taking advantage of the smart export guarantee brings higher savings, paying for renewable energy you export to the grid. In Northern Ireland, you can get paid for exporting a surplus by one of the organisations that offers this service.
In London and south-east England and with the SEG you might save from £225 to over £300, depending on how much time you spend at home each day, according to the EST. Meanwhile, in Stirling, Scotland, savings could be from £185 to £290 with the SEG and again depending on how much time you are at home each day, the ESTs figures show.
A solar water heating system might save you from around £60 per year if you currently use gas to £115 per year if you currently use LPG to heat water, according to the EST. Actual savings will of course vary depending on the system and your usage.
Bear in mind that solar water systems normally provide around half of your hot water requirement that is nearly all of it in summer, but less in winter says the EST. Youll still need your boiler or an immersion heater to fill the gap.
Cost Of Solar Panels For A Small Household
If youre in a one-bedroom or two-bedroom property, a 1-2kWp solar panel system will produce more than enough electricity . This system consists of 4-8 panels, and needs around 10 square metres of roof space.
Want to find out what solar panels we recommend installing? Check out our guide to the best solar panels.
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Get Paid For Your Solar Panels’ Electricity
Some energy companies will pay you for electricity generated by your solar panels that you don’t use but put into the grid instead. This is called the Smart Export Guarantee .
You won’t get it automatically when you export electricity you’re not using. You’ll need to sign up with an energy company.
Find out about the Smart Export Guarantee explained, including how much you could earn and which companies offer it.
The SEG replaces the governments Feed-in Tariff scheme, which closed in March 2019. If you’re already signed up to it, read our guide to the Feed-in Tariff.
Solar Panel Cost By Manufacturer
Another way to break down solar panel price data is by the panel brand. The following table was made using data from the EnergySage Marketplace and tracks the average cost of 6 kW and 10 kW solar panel systems by the brand of solar panel used in the installation project.
Cost of solar panels by panel manufacturer
NOTE: These ranges are system prices BEFORE the 26 percent federal tax credit for solar.
The price you pay for a solar panel brand is reflective of panel quality to a degree. For example, systems using SunPower panels see the highest average prices , and SunPower is known for producing well made, high-efficiency products.
Interestingly, there arent that many outliers when it comes to brand pricing, and most manufacturers generally see similar cost ranges. Its important to keep in mind that when comparing system prices based on panel brands, there are so many factors aside from just panel manufacturer that impact the final system price like installer experience, location, racking equipment, inverter brand, and more.
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Cost Per Installed Watt
As stated, the cost per installed watt is one of just two pieces of information that you need to determine the total cost of your solar system.
Here is the average cost per installed watt broken down by province:
Its important to note that these numbers represent average costs. Systems can cost more or less than the average depending on the size and the type of equipment used.
As a general rule, a solar system in your province will be priced:
- Higher for premium equipment and installers, or if your required size is below 7.5kW
- Lower for standard equipment and discount installers, or if your required size is above 7.5kW
How Much Does A Solar Panel Cost
Prices have been coming down steadily over the years. The total cost will depend on how many kilowatts of power your array will generate. According to consumer reports, after solar tax credits are accounted for, the cost for a solar panel system on an average-sized house in the U.S. in 2021 ranges from $11,000 to $15,000.
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How Much Does It Cost To Install Solar Panels In The Uk
In 2021 solar panels cost around £6,000 £7,000 for the average sized residential home, this is over 60% cheaper compared to what they were in 2010. It means solar panels are now more affordable than ever. And thats great news for homeowners!
Even though theres never been a better time to invest in solar energy, solar panels are a considered purchase. Its not like nipping out to the shop to buy a new pair of shoes. Although prices have dropped a lot, systems still cost several thousands of pounds. So its important to do your home work around not only which are the best solar panels, but also how long it could take to recoup your investment through energy savings and government payback. Use our solar PV calculator to find out how much payback you can expect.
To get the best solar panel deal you should compare multiple solar PV quotes from MCS certified solar installers to ensure you get the best possible price and the right number of solar panels to meet your requirements.
To put these prices into context, the cost of solar panels for a 3 bedroom house will be around £5520 £6040 as they’ll need to install a 3-4kW system to meet the higher electricity demands.
As we mentioned earlier, the price of solar panels has dropped pretty significantly. In fact, solar panel prices are 70% cheaper than in 2010. We’ve included a chart below to illustrate just how much prices have dropped for a typical 4kW system in the UK.
Are Solar Panels Worth The Investment
Thanks to the lower-than-ever cost of solar panels and various solar incentives, solar panels are a cost-effective investment for the majority of homeowners that will provide an excellent return on investment.
Not only do they lower your energy bills, but you also get to power your home with clean renewable energy and reduce your dependence on your local utility company.
Even though spending up to $20,000 is daunting, federal incentives eliminate 26% of solar system costs after 1 year. There are also various ways to finance a solar system – from solar loans and leases to PPAs – so you can pick whichever option that works best for you.
Plus, solar panels provide significant utility bill savings in most areas. An average home solar panel system can save between $1,000 and $1,600 per year on electricity bills depending on the states net metering policy and the homes energy consumption.
Actual solar savings will depend on the system size, the cost of electricity, home energy usage, and what net metering policies are in place, but the average solar homeowner can expect their solar payback period to be between 8 and 11 years. After that, theyll be enjoying completely free solar electricity for at least 15 more years!
If youre still not convinced, you can use our solar panel calculator to find out how much solar costs and can save you for your specific home based on your average electric usage and prices in your area.
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Evaluate Your Sunlight Exposure
More sun means more energy produced and a greater potential to save with solar. Certain states, like Arizona and California, average more sunlight hours per day.
Your home’s orientation toward the sun, the amount of shade and its roof type also affect a solar system’s output. You can estimate the efficiency of panels in your area by using the SolarReviews calculator. Enter your address and the average cost of your monthly energy bill.
Is A Diy Solar Installation A Good Idea
While you can install solar panels yourself, it may not be the best idea simply because of the potential danger involved. DIY solar installations let you save money on labor costs and you can even find DIY solar kits online, which range from $8,000 to $10,000.
However, the potential savings may not be worth the risk: youre working on a roof, plus youre completing electrical work. Not to mention, youll need to work out all of the permitting and planning yourself, which can be hard to navigate. You also run the risk of voiding out warranties and not qualifying for certain incentives.
So, while you can install solar yourself, we dont advise it. DIY may save you a buck, but going with a professional installer will save you a headache.
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