Why does solar cost so much

There are some reasons why you might want to pay a little bit extra for your peace of mind. Check all of the paperwork very carefully. This means that you can claim back a large part of the money you spend on your solar system, reducing your costs.

As well as the federal tax credit, many states and local utilities offer rebates, tax credits, and other incentives for installing solar. Your regular electricity bills are usage-based, and so while they may seem high, there is no fixed investment. You just pay high energy costs, cycle by cycle, year by year. You make a significant one-time investment and then reap the benefits of reduced electrical bills for many years to come.

The average life cycle of a solar system is in the region of twenty-five years. This means that after eight years, you will have paid off your initial investment, and for the rest of the working life of your solar system up to 25 years, remember , You will enjoy huge savings on your energy costs for free!

So I found some significant material costs in solar systems. But there is also a large installation cost element that a careful buyer can significantly reduce by shopping around, doing research, or installing the system themselves.

Then the initial solar investment can be further reduced by federal and local tax rebates and incentives. Using high-quality products is important to get the best results with solar power, but also make sure you check all the solar financial information available. Ideally, a solar panel system should be properly installed and covered by warranties, but it should also offer an attractive return for every dollar spent.

For homeowners with access to low-interest loans, it may be possible to go solar with zero net cost. If the annual savings are higher than the loan payments, your solar power system can purchase itself. This means you can cover part of the project cost with money that would have otherwise been paid in federal taxes. Depending on where you live, there may be additional incentives such as state tax credits, solar power rebates, or renewable energy credits. Solar panel systems seem expensive if you only focus on their sales price.

However, their operation and maintenance costs are very low and they have a long service life. The upfront cost of solar panels is normally recovered multiple times in the form of power bill savings.

We hope you liked this article. Please rate it or leave us a comment. Average rating 4. Vote count: No votes so far! Be the first to rate this post. Your email address will not be published. Your consent to this agreement is not required to make a purchase. I also agree to the ecotality. We respect your privacy. Home Why are Solar Panels so Expensive? Why are Solar Panels so Expensive? Page Contents. Comparing the Costs and Benefits of Solar Panels Solar panels may seem more expensive than conventional diesel generators when you only compare their upfront cost.

Installing Solar Panels as an Investment Decision For many homeowners, going solar can be as lucrative as investing in a small business. After installing solar panels, the money you save on electricity bills is strongly determined by local conditions: Solar panels are more productive in sunny locations. There is more solar radiation hitting their surface, which means they can produce more electricity.

Solar energy is more valuable in places with expensive electricity. If two solar panel systems in different cities have the same energy output, savings will be greater in the city with the highest kWh prices. The share of soft costs in the total cost of solar panels is another fact that often surprises consumers. However, the number makes sense when one considers the nature of solar panel companies and the installation jobs they perform.

Each home is different and requires a customized design and installation. Solar companies require staff with the proper skills and qualifications. And like other companies, they have to factor in profits, overhead expenses, and marketing costs.

Even with soft costs and extra tariffs, consumers can find ways to reduce the final bill of their residential solar power system. Learn more about incentives and rebates on our solar incentives page. Solar power companies often offer incentives to lure interested customers. These deals can have a positive impact on the final price of residential solar power systems. Check with several installation companies to ensure you get the best price available.

Keep in mind that lower prices do not always mean a better deal. The easiest way to shop around is to use the SolarReviews solar panel calculator. As components wear out, get damaged, or become obsolete, regular inspections and maintenance are key to protecting power sources.

While the solar company will cover any warranty claims, all other upkeep is the sole responsibility of the homeowner. Repairs and equipment replacement costs vary. Frugal energy users can try cleaning their own panels to reduce their costs. However, periodic professional cleanings are still recommended to maintain optimal system performance. The savings from solar panels come in the form of dramatically lower electric bills.

Another way to look at savings is by calculating your solar payback period. The payback period is the length of time it takes you to recoup your initial investment costs. After that time, every watt of energy you make is profit. In most states, the payback period for solar panels is currently years. Learn more about solar panel savings and solar payback period.

How much a household can actually save depends on many factors:. Use the solar panel calculator below to understand how soon your new residential solar system will start paying you back. Yes, solar panels are expensive. But in addition to offering energy independence and environmentally-friendly renewable energy, solar panels also have the potential to save you thousands of dollars over the life of the panels.

Furthermore, the high upfront costs needn't be an obstacle: most solar companies work with loan providers to offer many financing options. If you haven't already, start by getting an solar cost and savings estimate to see if the math is in your favor.

Zeeshan is passionate about promoting renewable energy and tackling climate change. He developed these interests while studying at beautiful Middlebury College, Vermont, which has a strong focus on sustainability.