How much do solar panels really cost?
I often get the question: how much do solar panels cost? On the surface, it seems like a pretty straightforward question, with an answer that is easily attainable. However, the concept of “cost” includes much more than the sticker price of a few solar panels. When considering any alternative energy project, you need to consider the materials cost, the installation cost, maintenance cost, and energy savings. You should also think about the added value to your home or building.
In short, there is no direct, simple answer.
Turning first to materials cost, plan on an investment of about $6-9 per watt of solar energy (the higher end, if you are paying for installation). The size of your house is largely irrelevant, but you’ll need to look at your recent electric bills and decide how much energy you use in a given month (on average) and how much direct sunlight you get. A rough range for upfront costs, including installation, for solar panels, inverter box, wiring, etc., is approximately $30-40,000 for a single family house, if you are looking to entire replace grid-based electricity with solar energy. Your particular needs may range higher or lower. You could also experiment with a do-it-yourself solar panel system, which is explored in another post. Be sure to shop around to get the best bids for a solar panel system, if you are buying from a retailer.
The initial cost does not take into consideration any tax rebates or other incentives, which can save you up to 80% of the overall cost. Even with an 80% discount, many people might still believe that spending $5000-10,000 on solar panels is too rich for their blood. So let’s turn now to maintenance cost and energy savings. Taking these into consideration, along with the increased value of a building with solar panels vs. one without, your investment could be recouped in about 5-8 years. Stay in your house longer than that, and you’re paying yourself:
Considering solar panels' cost, they pay for themselves pretty quickly
Buy installing solar panels, you guard against energy rate increases in years ahead. You also have the security of an energy source during times that the grid is down. When you consider that your savings in electricity bills will pay for your system in less than 10 years, you’ll recoup your investment about 3 times over during the solar panels’ lifetime.
The added value to your home as a result of installing solar panels is fairly easy to calculate, using an appraisal tool that has been reliable for the past 30 years. The Appraisal Journal states that, in the United States, value rises about $20 for every $1 decrease in energy costs. Thus, if your utility bills run you $500 a year (and you save that much), your home is increased in value by about $10,000. All of a sudden, the question of how much do solar panels cost becomes a lot less daunting.
Of course, for those that are interested in more than just saving energy, you can hardly put a price on the positive feelings associated with environmental stewardship. Doing your part to reduce your carbon footprint is a benefit that you can pass onto the next generation – with or without your home.
So next time you find yourself wondering how much solar panels cost, be sure to take into account the number of positive benefits that go beyond the price tag. You’ll be seeing the light soon!
Tags: cost of solar panels, solar panels cost, solar panels expense
March 31st, 2009 at 10:05 pm
Dear Sir
We are conducting an engineering analysis for setting up of a solar power plant in our institute, GIKI, upto 2.5 MW capacity
Kindly inform us how much will it cost in terms of
1: Initial cost of solar panels and accessories
2: Installation cost
3: Maintenance and operating cost per year
4: Service life of plant
Regards
April 19th, 2009 at 6:03 pm
Very few people will buy this with a payback that is 10-15 years. It will only become more mainstream with a payback of under 5 years.
April 28th, 2009 at 3:26 pm
ho
July 19th, 2009 at 3:18 pm
If you can achieve 1kw of solar energy and link it to a geothermal pump you would achieve free heating and hot water for 3 adults.although expensive to install it would take only 8 years to break even.
MARMALADE-ART GALLERYSALES
August 1st, 2009 at 3:16 pm
hai this is manivannan i want to known the solar panel cost which give me(6v-12v) or 10w-15w please tell me where it be sold in chennai
August 27th, 2009 at 4:35 pm
pls, am interested in this solar power and I want to go into the business , can you e-mail me for more details ,and what is the renge of power that will cover two bedroom house ,how much will that cost?
finally pls can you link me with any company in chinna ,where I can get this solar panel .
November 15th, 2009 at 9:12 pm
Yeah I have been investigating them because i have to do a report on them and this seems like a pretty good site..!!??
November 30th, 2009 at 3:15 pm
can you give an exact amount of how much to pay to get solar panels? to they charge taxes and installation
December 11th, 2009 at 3:20 pm
i love boys with solar panels cause they are rich.
March 2nd, 2010 at 1:57 pm
Sir,
I would like to install solar energy pannel for meeting domestic needs[ water, lighting, cooking etc.]
How much would be the cost for installation at my home? Please letme know the details.
Regards
Gara Latchanna
March 12th, 2010 at 4:39 pm
Seems like if they started making solar panels mandatory as part of the building code in highly-populated sunny areas like Los Angeles, San Diego, Houston, Las Vegas, etc. the cost would come way, way down for everyone.
There is no reason why they can't develop some sort of solar roofing tile. Plastic should not cost $40,000.
Until then, I can't afford it and it doesn't make a whole lot of financial sense. Very frustrating with the technology being there in the middle of an energy crisis.
April 3rd, 2010 at 7:37 am
We are interested in solar power, enough to provide our needs to run a DVR and 6 security cameras. Can you help ?
July 27th, 2010 at 5:12 am
I saw this idea for solar panels to be put in the pavement on roads and parking lots and stuff. Does that exist and how much would that cost? Here's the idea http://bit.ly/9tQTrq
August 26th, 2010 at 4:43 pm
G’day mate,
I think you are selling a environmentally friendly product that will sell very well and i like the fact you want to save the earth. cheers, for all the tips and hope this business does well.
yours sincerely, William Eaton.
August 30th, 2010 at 5:05 am
When someone asks for costs of something we are not asking for how much we can save by buying it – DON’T FIGURE THAT INTO THE COST- THINK LIKE A CONSUMER WE WANT HOW MUCH MONEY WE ARE SPENDING NOW! We are asking what it will cost us NOW. So if I say what will it cost to buy solar panels for my house, I want to know what it will cost to pay for the panels, pay for the wiring, the batteries and the hook up. As in how much will it cost to convert my house to solar power. How much I save is a sales gimmick to try and distract me from the high cost of going solar. (Kind of like Hybrid vehicle scam) When people ask for cost we want to know what comes out of our pocket right now to pay for it, we do not want the runaround and be told in 15 years it will pay for itself – not if I took out a loan at 10% or more interest to build it. Notice they only tell you how much you will save when they need to convince to buy something really expensive when there are cheaper alternatives available (cheaper being coal and I don’t care about the environment I will be dead by the time global warming causes a problem)