Solar Product

Solar products are becoming increasingly popular as more people become interested in renewable energy. One of the biggest considerations when deciding to go solar—arguably, the most common reason people choose not to make the switch—is the cost. The cost of switching to solar can vary greatly depending on a number of factors. This article will break down the costs of installing solar panels for both residential and commercial buyers and explore the factors that affect those costs, so you can better understand what goes into the price of your solar power system.

The Cost of Equipment

The cost of installing solar panels on a residential property can vary from around $10,000 to $30,000 or more. One of the most significant factors that affects the cost is the size of the solar panel system. Larger systems that can generate more energy will cost more money simply due to the fact that they require more panels; naturally, more equipment means a higher cost for not only the equipment itself but for the time needed to install it all.

Additionally, the type of equipment you choose will impact the overall cost of your equipment. For example, two primary types of solar panels are on the market: monocrystalline and polycrystalline. Monocrystalline panels have a higher efficiency rating but cost more than polycrystalline panels. So, if you opt for monocrystalline panels, you'll have a higher upfront cost but will get more power from your panels in the long run. Similarly, microinverters that attach to every panel in your system cost more than purchasing a single string inverter but will increase the efficiency of each panel. Whether or not the increase in upfront cost is worth the investment or not is something best discussed with a solar power expert.

The Type of System

The type of solar panel system is also a factor to consider. On-grid systems are the most common type of solar panel system for residential properties. They are connected to the local power grid, allowing excess energy to be sold back to the utility company. Off-grid systems are an alternative for those who live in remote locations without access to the power grid. These systems require batteries to store excess energy for use during times when the sun is not shining. Off-grid systems tend to be more expensive than on-grid systems, primarily due to the fact that they require a backup battery source; it's also generally a good idea to oversize an off-grid system to ensure you have the power you need at all times, and that oversizing requires more equipment.

A third of the time, hybrid solar power systems are connected to the grid and to a backup battery bank. Again, adding this solar power storage will increase the cost of the system you install. Additionally, hybrid solar inverters tend to cost more than either off-grid or on-grid inverters do on their own.

Commercial Solar Panel Costs

For commercial properties, installing solar panels can cost much more than for residential properties. A commercial solar panel system can range from around $50,000 to $100,000 or more.

One of the biggest factors that affects the cost of a commercial solar panel system is the size of the system. Because commercial buildings tend to have much higher power needs than residential buildings, their systems will be much larger on average than a solar power system for your typical suburban home. As stated above, more extensive systems that can generate more energy will cost more money.

Installation Costs

Another cost factor to consider is the installation process. As stated above, installation costs can also be impacted by the size of your system; the more panels you have, the longer it takes to install them all, and the higher those installation costs will be. However, the cost of installation can also vary depending on the complexity of the project and the type of solar panel system being installed. For example, systems being installed on steeply pitched roofs may require specialized racking that is more complicated to install. Or, if you're installing panels on more than one side of your roof, this can also take longer. If you opt for microinverters on the panels instead of a single string inverter, attaching those microinverters can also take longer and increase installation costs. On average, installation costs can range from $2 to $8 per watt of power that the system is capable of producing.

Tax Incentives

Another factor that can affect the cost of installing solar panels is tax incentives. Unlike the other factors outlined above, this one can actually decrease the cost of your system. The federal government offers a tax credit for installing solar panels, which can help reduce the overall cost of the project. The federal tax credit is equal to 26% of the total cost of the solar panel system. Some states also offer tax incentives or rebates for installing solar panels, which can further reduce the overall cost. If you're seriously considering switching to solar power, research state and local incentives that can help reduce your system's upfront cost.

Talk to an Expert

When installing solar panels, it is essential to talk to an expert. The experts at The PowerStore, Inc., can help guide you through designing and installing your solar power system. We can help you understand the costs and benefits of solar energy and help you choose the best system for your needs. We can also help you navigate the complex tax incentives and rebates that are available to help reduce the overall cost of your solar panel system. If you are considering installing solar panels, contact The PowerStore, Inc., today. We can discuss your energy needs and provide you with a quote on the cost of a system appropriately sized for your home.