Home Solar Panels Cost – A Complete Breakdown

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Home Solar Panels Cost – A Complete Breakdown

How much does home solar panels cost? A lot of home owners that are considering [tag-tec]renewable energy source[/tag-tec] may be asking this question. But before you install a solar power system for your home, you should consider the overall energy needs of your household.

Do yo want to use a battery bank to store the power generated? How many electrical components or appliances do you want to be powered with renewable energy? Depending on your budget, many specialist contractors will offer a complete package to meet your needs.

The reality is, the initial investment for home solar power system is expensive. This is because the semi-conductor material used to make solar panels are expensive. Back in 2005, home solar panels cost averaged at $3 – $4 per watt. The cost will reduce though as manufacturers find better ways to lower production cost.

There are numerous factors that influence the final costing of a home solar power system. The bulk of the cost will be in the Photovoltaic (PV) modules. When you are given a quote by the solar power contractor, about 70 percent of the cost will be the PV modules.

Next is the labor cost. Installing the solar panels can be labor intensive. Hence about 10 percent of the budget is for manpower. The other 20 percent of the budget will be used for the power inverter, batteries, PV mounts, cabling etc.

Here’s some generic [tag-tec]home solar panels[/tag-tec] costing. A small solar power system with a single PV module that generates approximately 75 watts can cost about $900 to install. If you want a bigger system, a 2 kilo-watt setup that will meet most of your home energy needs can cost from $16,000 – $20,000 to installed.

Despite the high initial investment, a residential solar power system can reduce your overall energy cost over a time frame. Not to mentioned the added value to your home. In addition, you may also be eligible for government grants to buy the solar panels.

As an alternative, you can always build your own home solar power system via a Do It Yourself (DIY) approach. For this to work, you will need a good step-by-step home solar power guide.

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By | 2012-11-06T12:35:29+00:00 June 9th, 2009|Home Solar Power|1 Comment

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  1. Zelannii August 7, 2009 at 1:50 pm

    OK, 1) failed to mention whether or not subsidies were counted in the figure. I had quotes from 2 companies to put solar on a new construction (easier than existing construction) in SC where the house was considered a “perfect candidate” for solar due to facing of the home and a good roofline. For 1.4KW, it was over $30,000. Both quotes were within $1000 of each other. This did not include “storage” batteries, and was for a grid connected system. There are no state subsidies in SC for solar power. In NJ, this same system would have cost under $15,000. The article should specify the subsidies.
    2) Increased insurance costs are not included in this pricing. Adding $20+K value to your home, especially solar systems which dramatically increases your costs due to potential for storm damage, is several hundred dolars a year.
    3) Costs assume you pay cash for the install, and that your home is unfinanced. Having a home with a mortgage, paying the 30K as a principal payment against your motgage is a FAR better investment over tim than solar, but it later… If you have to finance the solar install itself, you could be looking at an additional 30-50% in costs over 10 years.
    4) Maintenance costs. Solar panels degrade in performance over time. They also require periodic cleaning, component replacement (cheaper systems use plexi, not glass, and yellow over a decade or so further impacting performance). Batteries need to be replaced every 5-10 years. Inverters also fail after 10-15 years.
    5) Recouperation costs over a 20 year period assume your power company allows you to “run the meter backwards” and basically put overproduction into the grid during the day and buy that power back at night for the same price. Many power companies don’t do this (only 1 in SC does), and far more actually charge differing rates at different hours of the day, so your overproduction might be valued far less than nighttime power, or they only offer you wholesale rates.
    This is a bad article, and only takes into account INSTALLATION costs, which can be as little as 50% of the costs to own solar over a 30 year period, especially if you live in an area where heavy storms or hail is common (like most of the south east of the USA).

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