How much do Solar Panels Cost, and are they worth it?

What are Solar Panels?

Solar panels, also known as photovoltaic (PV) panels, are basically the devices that convert sunlight into electricity. Solar panels are usually installed on the rooftop of the house where sunlight can easily be acquired.

In recent years, solar panels have gained considerable acceptance worldwide as a renewable and affordable solution for fulfilling its energy demands. Due to an abundance of sunlight and the growing need for renewable energy sources, solar panels are becoming more and more popular in almost every other home, business, and industry.

We know that installing solar panels is one big investment for many, but is it even worth it? Let’s find out together!

What is the Average Cost of Solar Panel Installation?

So, how much does it cost to install a solar panel? Many of us have this as the first question as we think of installing solar panels. Well, when it comes to solar panel prices, they vary depending on factors like size, location and quality. While providing an exact price for the solar panel installation at your site may not be possible, we still gathered some information and came up with an idea of how much it may cost if you’re thinking of getting solar panel installation done. Before deciding if the investment is worth it or not, let’s first break down the average solar panel installation cost and benefits of solar panel installation!

According to a survey based on 1,000 homeowners with installed solar systems, solar panels priced between $15,000 and $20,000 for a 2,000 square foot house. However, the Solar Energy Industries Association (SEIA) reports that the installation cost of a household solar system might reach up to $25,000. So, On average, you can expect to pay anywhere between $15,000 to $25,000 for a residential setup. Seems steep, right? But wait, let’s breakdown the cost and see where will you be spending your money:

PV materials (47.2%)

Almost half of the cost covers the PV materials. The PV material includes panels, inverters, and hardware. These items are necessary to capture and convert solar energy into usable electricity.

Electrical Materials (7.2%)

Approximately 7.2% of the cost is attributed to electrical materials which will be required for the wiring and connection of the solar panels. It is important to use high quality equipments to ensure seamless durable service.

Taxes, Fees, and Permits (8.2%)

These costs include regulatory requirements, approvals of local authorities, or any fees that may be required for installing the solar panel on your property.

Administration, Grid Connection Request, and Design (12.2%)

Next comes the cost of administrative tasks, such as paperwork, coordination, designing the layout, and requesting the grid connection from the provider.

Labor and Installation Charges (12.2%)

Lastly, solar panel installation service and labour expenses covers approximately another 12.2% of the total cost. This amount pays for the labour expenses of hiring experts to install the solar panels, attach the hardware, and make sure the system is configured correctly and operating.

Benefits of Solar Panel Installation at Home

Now that you know where your cost of installing a solar system is being used, now might be a great time to know the advantages of Installing a solar panel! Here’s why solar panels are a beneficial asset for your houses.

1. Solar Panels are a Reliable Energy Source:

By installing a solar panel at your place, you stop depending upon any other sources of electricity. Solar panels help you generate your own electricity through the solar panels which are installed at your rooftop, and will use the sun’s heat and energy only.

2. Solar Panels Saves Electricity Bill:

One of the main reasons why people decide to install solar panels is the hefty amount they save on their electricity bills. We all can agree that by installing solar panels, there is a huge amount that can be saved. The key to cut your utility bill is simple. All you need to do is to install the panels of the right size and at the right position which will be capable of generating enough electricity that can cover the entire house.

3. Solar Panels Helps the Environment:

The sun gives out clean and pure energy that is used by the solar panels. As you install them at your home, you become less dependent on fossil fuels. The most common energy sources for power are coal and natural gas, both of which release air-polluting gases that are bad for the environment. On the other hand, solar energy helps to create a cleaner atmosphere.

4. Solar Panels Increases Property Value:

Residential properties which have solar panels installed are more valuable than neighbouring properties. Why? Well, considering the benefits of solar panels, the saving of utility bills, money earned by selling units back to the utility, all these are a great plus point for home buyers, and they will likely agree to pay more for a house with solar panels already installed. Solar panelled houses are highly valued and the resale value is alot $15,000 more that others!

5. Solar Panels are One Time Investment:

Installing solar panels is a one time investment. Once you’re done with the process, you can enjoy the benefits right away. The best part is that solar panels have low maintenance cost. They’re easy to maintain as no parts are attached that can wear out over time. All you need is to keep your panels in a good physical condition by keeping them clean. According to a report, the average lifespan of a solar panel system is 25 years!

Conclusion - Are Solar Panels Worth the Cost?

We agree that going solar may have a large upfront cost, but it’s still a worthy investment as you won’t be paying any electricity for the next 25+ years. The price that you spend in the installation may be covered in some years, which is amazing but the payback you get by returning power is worth spending the money! Moreover, the solar system panel installation leads to a prosperous, sustainable, and clean future which is important for us and our future generations!

How much do Solar Panels Cost, and are they worth it?

What are Solar Panels?