Why do solar panels cost so much?

When you want to install solar, many people first research how much it’s going to cost and then decide they don’t actually want it anymore. They don’t think they’ll actually save money by going solar because it costs so much to install it. However, when going solar, you need to be thinking about the long term. Not only will the return on investment be worth it, but solar is cheaper now than it’s ever been. Keep reading this article to learn why solar costs so much and how it actually helps you save.

What goes into the price of a solar system?

When you get a solar system, there are multiple different factors that make up the total price. The first obvious cost is the price of the system itself. Between the panels, the inverters, the batteries, and the collectors, the system will make up roughly 25% of the overall cost. On top of that, permit fees, taxes, installation fees, and transaction fees, these soft costs make up the rest. The soft costs remain the same despite the decrease in the prices of the panels themselves.

Many people are worried that the new tariffs are also going into the price of solar panels right now, and while that’s true, it’s not significant, only increasing the prices of panels by 10-12 cents a watt.

How you can lower the price of your system.

You might not have thought about what you can do to save money on your system, but it’s true, there are things you can do. First of all, you’ll want to get any incentives, credits, and rebates you can find. This is why it’s so important to install solar right now. The federal tax credit, for example, will only be at 30% through the year. Then it will start going down until it’s completely gone by 2022. You could also consider leasing your panels so you can slowly pay for them over time. And you could even consider buying used equipment, though this is highly unrecommended and probably won’t be worth it. You also might consider joining a solar farm. Read here for our guide on exactly what that means and how it could help you.

Solar energy will save you money over time.

Despite the initial costs freaking you out, keep in mind that solar energy will save you money over time. You won’t be dependent on a utility company’s fluctuating prices. You won’t have to worry about the limited resource that is fossil fuels and the ever-increasing prices of power because of that limited resource. You’ll have what is essentially free energy for the next 25-40 years. And you can even make money if you choose to be on grid with net metering and sell any excess energy you generate back to your utility company.

What about maintenance costs?

Maintaining solar is actually super cheap and easy. Despite hosing it down occasionally and a yearly inspection from your solar company, you shouldn’t have to put too much into your panels. The only thing you’d have to worry about is severe damage, but even if that does happen to your system, your warranty should keep that from being a big deal.

All in all, the benefits of solar greatly outweigh the price, and there are ways to keep your costs down. Want to learn more about solar costs and financing? Check out the HahaSmart blog for more information!

HahaSmart Blog - More Solar Tips and Guide
HahaSmart News - Stay Informed
Your Solar Incentives - See Credits and Incentives in Your Area
Check Your Home's Solar Price - See How Much You Save
Register Now - Unlock The Lowest Solar Prices in Your Area