Solar Panels Cost

So, specifically what is needed for calculating solar panels cost? When it comes to solar power very few of us know the way the cost of solar panels is determined. Nor, for instance, do we at once grasp the connection between the cost of solar power and the value of solar power. We all know that gas costs are in dollars per gallon. We also all know approximately what distance we will have the ability to drive after shelling out forty bucks for a tank of gas. Unlike a tank of gas, the value of which is consumed pretty much immediately, solar panels deliver their value spanning over a period of time.

With that thought, the purpose of this article is to address a couple of questions: (1) How much do solar panels cost? AND (2) Can the value of solar panels provide more benefits than the cost?

The initial question is more directly related to solar panels cost, so we will address that first. Solar photovoltaic (PV) panels (which change the sun’s rays into electrical power) tend to be priced in dollars per watt ($/W). There are several specifics associated with this measure. It's possible you will notice some people look at DC watts versus AC watts. Also they may well discuss another thing known as dollars per watt peak ($/Wp). Yet the primary point to realize is the fact that, when you purchase a solar energy system, you’re in reality buying the ability or "capacity" to produce electrical energy right now and into the foreseeable future. Very interesting, huh?

Now, exactly how much are you going to be spending? What's the out-of-pocket cost of a solar PV system?

Because every single solar home installation is a bit different, the result differs to some degree from location to location. And, simply because solar rebates and solar tax credits are typically offered at the local and/or state level, the price varies somewhat from region to region. Note that any US homeowner with federal income tax liability can take advantage of a federal solar energy tax credit worth 30 percent of system costs. Listed here are a few useful resources about solar energy costs:

(1) The Open PV Project, an endeavor of the National Renewable Energy Lab, has pricing information from the solar installers across the country. The 2010 nationwide average cost of solar PV was $7.15 per watt. Not all of the solar installation companies are involved in this program, which means the figures aren’t perfect. But the data offers a look of how much, let's say, the typical Arizona homeowner could be spending ($5.64/W) versus the typical homeowner in New Jersey paying ($7.64/W).

(2) A number of states require solar installers to submit the prices from the solar installations and authorities may retain solar rebates in the event that figures aren’t submitted. The end result is fairly comprehensive solar panels cost figure. Pennsylvania’s Sunshine Solar Rebate Program, as an example, is reporting an average rate of $5.32/W for residential solar energy ventures with a median system size of 8 kilowatts (kW). Go Solar California, a joint project of the California Energy Commission and the California Public Utilities Commission, is currently reporting quarterly updates on household solar costs, which are presently averaging around $7.19 per watt.

(3) If you aren't certain, look for a rule of thumb. Any time you are computing the cost for solar panels start with a default price of $7.00/W for residential solar projects. Even if this number might not be perfect, it’s an acceptable figure to start with. Remember the fact that this pre-incentive amount is going to end up being reduced by whatever solar rebates combined with tax credits that are available in your region.

(4) Obtain at a minimum of two (preferably three) solar home energy estimates from qualified solar installers. In the end, it is not until you are given a definite proposal that you’ll be able to know how much solar panels will cost for your home.

As pointed out above, given that each and every project is unique, it is rather tough to make generalizations. However, assuming a pre-incentive price of $7.00/W, an average 5-kW system would have a gross cost of $35,000 ($7.00/W * 5,000 W = $35,000). Any sort of solar rebates would lower this gross cost further, as would the 30 percent federal solar tax credit.

Can the value presented by solar panels exceed the cost?

Similar to the first response, this one differs from project to project, and region to region. Within states that are "good" for solar, for instance New Jersey, Pennsylvania, California, Arizona, Massachusetts Colorado and Hawaii, among others, a solar panel system pays for itself in as few as three to five years and provide reliable, long-term energy savings. When considering any a residential solar energy project, you will need to take into consideration the following factors, each of which plays a part in solar panels’ return on investment:

(1)The actual price you have to pay for electrical power. Everything else the same, people that pay a fairly high per-kilowatt hour (kWh) rate for their electricity definitely will have the best financial return on their solar home energy system.

(2)The particular solar energy incentives available in your area. If you are living in a state where you will be allowed to sell solar renewable energy credits (SRECs), a residential solar energy system will not only reduce your electric bill, it will also produce revenue above and beyond utility savings.

(3)The amount of sunlight or "insolation" in your area. While the majority of the U.S. receives a sufficient amount of sunlight to make solar power a beneficial idea, solar energy systems do deliver more power in sunnier regions.

(4)The likely impact solar panels should have on the value of your home. In general, solar panels improve a home's worth and, also decrease its cost of ownership.

A proper estimate will specifically demonstrate the year-after-year monetary savings associated with a specific system. It will likewise include a cash flow analysis that indicates an estimated investment recovery time period and return on investment (ROI).

In the end, it’s up to you, the homeowner, to decide what sort of monetary return you want in a home energy upgrade. Some individuals are comfortable having a ten year repayment and comprehend the fact that a solar panel system is going to continue to generate inflation-proof benefits for at least an additional 15 years following that 10 year mark. Some other individuals might be looking for an investment recovery of, perhaps, 5 years or less.

As a whole, a lot of new solar power ventures are significantly decreasing homeowners' power bills and providing a positive ROI. The value of solar panels is much more than the start up solar panels cost. To be truthful, on the other hand, there are also examples in states that regional solar incentives are low and/or electricity is comparatively inexpensive. These include Kentucky, Alabama and Nevada. At the moment within these locations, it is harder to suggest whether or not the value of solar is greater than the costs. Facing a 19-year payback along with a return on investment in the low single digits, an individual in Nebraska, for example, might be forgiven for their hesitation.

While solar panels cost is becoming a little more cost-effective all the time, and while a growing number of states are taking steps to increase demand for solar power, you should believe that the value of a home solar energy system will increase for virtually all property owners across the country. In the event that you are fortunate enough to live in a state where the value of solar already is greater than its cost, do not lose out on an awesome opportunity!