The cost of solar panels has significantly declined over the last decade, making solar systems more valuable to homeowners. However, just like with any other component of a solar system, solar panels are only one part of the total system.
The Cost of Solar Panels Over Time
The cost of solar panels has significantly declined over the last decade due to the emergence and success of the global solar industry. Over the last decade, the cost of solar panels has fallen by around 90%.
The rapid growth of solar technology has dramatically lowered the cost of electricity. This has led to a dramatic decline in the cost of traditional energy sources.
The Key Terms for Considering the Cost of Solar
A couple of terms that are commonly used to communicate the relative energy-value of solar panels.
Solar Panel Price Per Watt
The price per watt is the price that the consumer will pay for each watt of solar that they install. This is the simple and straight-forward way to determine the system’s cost.
This figure allows homeowners to easily compare the relative value of different solar options. It does so by taking into account the total watts and other factors that affect the cost of solar.
The average cost of a solar system is typically around $2.75 per watt. This figure is often expressed as the cost of adding in extras such as ground-mounting or a main panel upgrade.
Solar Panel Price Per Kilowatt-Hour
The price per kilowatt-hour shows the cost of a solar system compared to the energy it produces.
Kilowatt-hour is a unit of energy that is equivalent to the amount of power that was consumed over one hour.
While price per kilowatt-hour is most useful for comparing solar bids, it is also used to highlight the value of solar compared to the base case of buying power from the electric utility. As long as your electricity bill is locked-in at a steady price, you can rely on solar for years to come.
Solar Panel Installation Cost
Aside from the panels, solar systems also have various other components that are required to complete the project. Some of these include the wiring for the system, the mounting equipment, and the electrical connections.
Aside from the solar system, many homeowners also install additional upgrades. For instance, some choose to add a home battery to their system to provide resiliency against grid outages.
Aside from these components, solar power installations also require various soft costs such as labor, engineering & Design, permits, and sales & Marketing.
Although solar panels make up the majority of a solar system’s cost, other components such as the inverters are also critical to its longevity and performance.
Incentives
Aside from the federal tax credit, various state and local incentives are also available to help reduce the overall cost of solar.
Before you decide to go solar, talk to a professional energy advisor about the various incentives available to you. Over the last decade, the prices have significantly decreased and the incentives have increased.
Conclusion
The cost of solar has significantly fallen over the last decade, making solar systems more accessible to more homeowners. Understanding the various terms associated with solar system costs can help you make an informed decision.