There are various benefits for homeowners who get solar power systems installed in their homes. These include lower carbon footprint, increased energy efficiency, reduced electricity bills, and high home values. However, you need to consider high system installation and maintenance costs before you can reap these benefits.
Moreover, the number of gains you can get will vary from home to another. So it is important to know the initial and overall costs of installing solar panels so that you can plan according to your budget. In this article, you can understand this aspect to determine the feasibility of a solar power system for your house.
What is the average cost of solar panels?
On average, solar panels cost around 16,000 dollars. The lowest cost you can get is anywhere from 3,500 dollars, and the highest cost is around 35,000 dollars, according to the model and type of system.
What is the cost of solar panels according to their types?
1) A mono-crystalline solar panel system
These are the most energy-efficient option you have to install solar panels. This type of solar panel costs, on average, 1 to 1.50 dollars /watt. This means that if you install a 6kW solar system, it will cost you around 6,000 to 9,000 dollars. Mono-crystalline solar panel systems are more expensive to produce than thin-film materials, according to solarenergyhub.com. The efficiency of monocrystalline solar panels, however, means that fewer of them are required to generate the same amount of electricity.
2) A polycrystalline solar panel system
A little less energy efficient but more affordable option is poly-crystalline solar panels. These solar panels cost, on average, 0.90 to 1 dollar/watt. This means that if you install a solar system, then it will cost you approximately 5,400 to 6,000 dollars.
3) A thin-film solar panel system
This type of solar panel is much more inexpensive than the other two, but it needs a large installation space and is mostly put-upon industrial. This type of solar panels costs, on average, $1 to $1.50/watt. This means that installing a 6kW solar system will cost $6,000 to 9,000.
What is the cost of installing solar panels?
The solar installation cost varies from location to location. Solar power costs more in areas away from the equator while it costs less in areas with a lot of sun. On average, the cost can be $15,000 to $25,000.
What factors affect the solar panels installation costs?
Estimation for the average costs of solar panels is already mentioned above, and this is what you should expect. But there are some factors that influence the overall cost of solar panels. These include:
1) Size of the system
Solar panels are available in different sizes depending upon the size of the house and the energy requirements. This means that the larger the solar system, the more the cost of installation. But it will also help you recover the costs sooner with large solar systems. So, for instance, if you want to install a 4kW solar system, then its installation will cost you 6,000 pounds.
2) Types of solar panels
As mentioned above, the three most commonly used solar panels for houses include mono-crystalline, poly-crystalline, and thin-frame solar panels. Mono-crystalline solar panels are the most efficient panels, but they are also the most expensive ones.
So if you want a more affordable option, then poly-crystalline panels are for you. They are feasible and offer a good efficiency rate.
3) Ease of installation
The ease of installation also determines the cost of solar panels. If you are handy at doing these jobs, then you can install the system yourself, but sometimes it can be challenging, so it’s best to get the job done by a professional.
So when determining the cost, the number of panels used, the angle at which they will be placed, and how strong the roof is will all be considered. The more effort needed to install panels, means the cost will be higher.
4) Labor costs
Installation depends upon labor costs that vary from location to location. The per-hour rate within that location will determine the total costs. Usually, it costs 300 to 500 pounds per day for a person doing the job. This rate can change depending on your area.
The installation costs will also depend on the season you are getting them installed in. If it’s a peak season, then the costs will be high. So the best time to install solar panels is during the winters when it is efficient and much more cost-effective.
This is because there is less demand for the installation service during winters. Since the companies that install solar panels have little to no work during the off-season, your solar system can be rapidly installed and start working in no time.
Moreover, in some areas, you may be able to generate more power during the winter season than in the warmer seasons. And even if the area you live in is cloudy, the solar system will be able to generate power.
6) Are there any additional components?
If you want to install additional components, then the cost of equipment will increase, but the installation costs will decrease, so if you want to install other things like battery storage systems, it’s best to get them installed with the solar panels to lower the cost of installation.
How much is saved by solar panels?
Even though there is a significant upfront cost of solar panels, they are bound to save you money and effort in the long run. So how much will they save? The answer to this is affected by various factors like:
- The size of the solar system
- The angle of the roof and the angle of placement
- The hours that your panels get direct sunlight
- The local utility rates
So to determine how much they will save you annually, you can calculate how much money you spend on energy each year. And then find out your current utility rate that keeps on increasing with each passing year.
You can use this information to estimate annual savings using an online calculator. People typically think that the solar system will eliminate all the energy bills. While this can happen but solar panels can significantly reduce your energy bills every month, and this is why they are a good investment.
Do you plan to improve energy efficiency or reduce your carbon footprint or simply decrease your energy bills? Installing solar panels will give you significant savings. The utility rates in your region solely determine the amount you can save with a solar system.
So if you live in an area with average or high utility rates, then you are bound to save significantly with solar panels. Solar panels system is a huge investment worth taking if you are wise.