Get All The Information On Soft And Hard Costs Of Solar Panels

Do you think the number 60 is cool?  I do too.  In fact, there are some interesting facts about it.  The Babylonian number system had a base of 60. The atomic number of neodymium is 60. 60 Minutes, a CBS investigative television show is a pretty decent show.  And, Gone in 60 Seconds is a movie starring everyone's favorite actor, Nicolas Cage.  Could you imagine what might happen if you added one number to the already awesome 60?  Well, here we go, and you are going to love it.  61 is the next big thing.  The cost for domestic solar panel systems has fallen a remarkable 61 percent since 2010. That’s according to the National Renewable Energy Laboratory’s (NREL) 2017 solar cost benchmark statement.As one can imagine, a solar panel system is composed of many pieces. You may already understand the cost of a solar panel system before and after tax credits.  If so, maybe you are a superstar of Nicolas Cage proportions. Here’s a summary of what it normally costs to have a solar panel system installed in your house or business.  The current industry median cost is between $3 to $4 per watt.  Also, the ordinary size solar panel system typically generates between 5 and 6 kilowatts.  

Solar Action Alliance Examples

For a solar panel system coming in with specs like $3.26 (per watt) x 5,000 (watts) will end up costing you around $16,300 per system (before the 30% ITC tax credit). But let's take a closer look, and break this solar pricing down. 

Residential Solar  Panel System Costs

The soft costs of solar panels haven’t altered much, typically accounting for everywhere between 55 percent to 64 percent of a new solar panel system. What about hard expenses vs. soft costs correlated with installing residential solar panels?

Hard Costs Of Solar Panel Installation

Think of hard costs regarding hardware as the physical merchandises installed to get your new solar panel system up and producing electricity in your home or business. Solar panels themselves can account for about 25 to 30 percent of the total solar panel system price.  These, however, are the hard costs you will need: the solar panels themselves, inverters, solar mounting racks, a battery for storage, etc.

Soft Costs For Solar Panel Installation

Soft costs include handling costs for the company of which you bought the solar panels, client acquisition and marketing, system planning, permits and fees for attaching to the grid, and labor for installation. Below is a soft costs analysis from the Department of Energy.

Solar Soft Costs

Even though soft costs totals range smaller in proportion to hard costs but it still really adds up. In fact, the Solar Industry Information Association (SEIA) recently issued a report putting the amount for soft costs at 68 percent. To some degree, soft costs are just part of operating a business. Solar energy companies have to pay employees, bring in new customers and profit, so we can see the need for these soft costs on solar panel purchases.

Soft Cost Reduction Solutions

Some solutions to the soft cost issue with solar panel pricing comes from the government.  The Department of Energy’s Solar Energy Technology Office (SETO) launched an ambitious initiative called Sunshot in 2011. The purpose is to put solar energy financially on par with all other power sources by the year 2020.

Several forms of permitting, entities, and regulations throughout numerous jurisdictions can reduce down the method of solar installation and raise costs. Through organizing and unifying solar, SETO is struggling to cut red tape and costs.

Curious about solar hard costs vs. soft costs near you, and how that might affect your own solar panel pricing? Just make sure, and promise us here at HahaSmart you will have a look at what we can offer you on the cost of solar panels and cost of solar installations.  We will strive to find you the best prices available.  Follow the solar experts. Try our price checker tool. It tells you how much solar power you need and how much you can save on your energy bills each month.

Please visit our solar blog to find out more about the benefits of going solar.