Solar experts have countless years of experience to support their claims and theories. They actively test and research new ways to make solar energy more feasible, accessible, and easy to use. They can easily guide you in comparing local solar companies with the correct installers.
If you want to save money on solar and go for a very low-priced system, you’ve already made the wrong decision. As consumers, it’s our habit to go for the lowest cost. However, solar panels are a long-term investment. One that can last 25 years if you keep them in proper care.
In the process of going for solar, you have two choices; either pay for a premium system and service that you can live with for 25 years or pay a low cost for a poor installation and unreliable service.
Solar Panel Cost In 2022
You can usually find a solar panel system for residential use in the range of $16,000-$20,000 without incentives. The cost drops significantly after adding the 30% federal solar tax credit. Solar companies will offer solar systems for $2.00 per watt and $4.50 per watt. It’s difficult to choose between the two due to the large difference in pricing.
You should always know how low you can go without compromising the installation and product quality. You should also have the guarantee that the installer will stick around for 25 years and provide support.
Calculating Solar Panel Cost
The cost can fluctuate according to your electricity consumption and location. Try to find a system compatible with your home’s electrical needs. Then find solar installers that offer a price to your satisfaction.
You can use an online solar panel calculator to see the price of solar installations in your area. You’ll also get an insight into the savings if you install solar and the prices offered by different local installers.
A Good Price
After applying for the federal solar tax credit, a high-quality solar system from a trusted solar company will cost you between $2.60-$3.20 per watt. The price will be slightly higher if you have a solar financing option, specifically around $3.60 per watt.
Don’t ever go for more than $3.60 per watt, as you’ll be paying extra with no additional benefits. Also, avoid going for very low prices, as the companies offering them cannot be trusted to provide you with the support you need for 25 years. This is because the companies come in offering low prices but go out of business due to insufficient or zero profits, so it’s risky to invest in them.
Even if you’re saving $1000-$2000 on a system, it isn’t worth it if the business will just evaporate, leaving you with zero support. A solar orphan is a homeowner whose solar company has gone out of business, and they cannot service the panel from another solar company. This is a real phenomenon, so you should always stay wary of low prices.
Installer Reputation
The reputation and reliability of the installer are of utmost importance. This is because even if you pay more, you’ll be at peace knowing that the installer will support you until the end of the solar panels’ lifetime.
To get a good price, research your area and compare the reputations and costs of different solar installers. Avoid big corporate installers, as they can go bankrupt too. Also, they won’t offer the level of personalised customer service you require with your solar panels compared to local installers.
Getting Value For Money
We have shared three tips to help you get the solar panel system and installation service you require without sacrificing quality or support.
Avoid Cheap Inverters:
Inverters are the brain of a solar panel system and hold a lot of important software. Having a cheap inverter can make all the systems go out of wack. Therefore, it’s important to invest in a good-quality inverter from reputable brands like Fronius, SolarEdge, SMA, Enphase, or APS.
Upfront Purchase:
Buying a system directly with cash can lead to lower installation charges and higher long-term savings. Solar installers have to charge a ‘dealer fee’ if you go for a solar loan. This dealer fee is not brought to your knowledge but ends up being added to the total price of the installation.
Low Priced, High-quality Panels:
LG Solar and Sunpower make Tier 1 solar panels with high quality. However, they come at a high price. You could go for large-scale Chinese manufacturers like Canadian Solar, Longi Solar, Jinko Solar, and Trina Solar, which have state-of-the-art manufacturing processes resulting in high-quality solar panels at lower prices.
The Value Of Solar Panels For Your Home
Most of the time, your electric bill savings from solar will pay off the cost of the solar system in 4-8 years, after which you can enjoy free electricity for another 20+ years. Higher electricity prices will contribute to shorter payback periods.
You can also calculate the solar payback period for your home through a solar calculator. You just have to put in the monthly utility bill and your utility provider. Solar panels can increase home value by about 4.1%.
This equates to $16,400 for a $400,000 home. That is more than the cost of installing a solar system in the U.S. with a federal tax credit. Solar panels help you save money, protect the planet, and increase your home's value.