Solar Has Become More Affordable
According to Our World In Data, the price of solar has gone down 99.6% since 1976. The lowering cost of solar panels is spurring many homeowners to buy them instead of renting or leasing. With the increase in public support for green energy, grants that encourage large investments in solar panels, and generous tax incentives, solar has quickly become more affordable than oil, gas, wind, or hydro. If things remain on the same trajectory for the foreseeable future then solar will also become cheaper than coal.
What Goes Into the Cost of Solar?
The cost of a solar energy system is calculated by many different factors; the materials, installation, tax credits, permitting costs, shading, current energy consumption, size of the system, and energy production expectations are all taken into account when determining the price of your energy system. In this article we are going to go through these elements so you know what you are paying for and some tips on how to make the most of your money.
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Solar Inverter
Roof Racking
Solar Panel Installation
Solar Panels are an essential part of your solar system. They generate electricity by harnessing the photons produced by the sun. Solar panels are made up of solar cells; multiple panels can be wired together to create a solar array. When sunlight hits a solar cell, DC energy is collected. This DC energy then goes into the inverter. The more panels you have, the more electricity you can generate.
An inverter receives the DC currents collected by the solar panels and converts them into AC currents, capable of powering your home. The excess energy produced by your system will either be stored or be sent back to your utility company, depending on whether or not your utility company has a net metering program. Net metering allows you to basically ‘sell’ back the excess electricity that your system produces back to your utility company.
Roof Racking is used to mount your solar panels to your roof. Racking is a very important part of your solar system not only because it is what holds your solar panels to your roof but it can prevent water damage depending on what kind you invest in. Racking with flashing, a metal plate that protects your shingles is able to divert water from the most vulnerable parts of your roof. In the long run, choosing the right kind of racking can save you time and money on repairs.
The installation process starts with an initial consultation so that a specialist can confirm that all of the measurements are accurate.
Then there is usually a waiting time of 1-2 months after you decide to go solar until your solar system can be installed. On installation day, it typically only takes 1 day to install your solar panels and the rest of your energy system.
Mae and Lee - Virginia
Mae and Lee, a couple from VA saved $7,665 by taking advantage of the federal solar tax credit when they purchased their solar system in 2020
The Price of Going Solar is Different for Everyone
The reason it is essential to have a personalized proposal designed for each customer is that each home is different so a cookie-cutter price won’t be accurate. To calculate the monthly payments solar companies look at:
- The size of your roof and what type of roof it is
- The amount of energy your household consumes
- Your expectations for how much energy your system should produce
They use this information to design a system that would produce enough energy for your home, or they will let you know if your home is not a great candidate for solar panels.
The cost of your system depends on how much energy you want your panels to produce. Most solar companies have a goal of designing their systems to offset 100% of the energy that the customer consumes. This would allow you to replace your utility bill with your monthly solar loan payment, which will eventually go away when the loan is paid off.
The last factor that makes a large impact on the price of your system is if you qualify for the Federal Tax Credit. This tax credit allows homeowners who qualify to write off 26% of the cost of their solar system. That is more than ¼ of the total price, which as you know, can make a big difference.
To learn more about the federal tax credit, the potential return on your solar system, and financing options check out the articles below.
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