Prices for Solar Panels: What’s Important

If you’re considering a shift towards solar energy, one of the first questions to pop in your mind is related to the prices for solar panels. After all, you need to make sure that your investment won’t stretch your budget or exhaust your savings. So, to help you determine whether you can financially accommodate generating green energy, the following lines highlight the prices and overall costs linked to installing solar panels on your roof.

The Prices for Solar Panels in Today’s Market

While the cost of solar panels differs based on their type and efficiency, the types used for residential solar installations are quite standard and their rates are constant. According to CleanTechnia, the average price per watt for solar panels in 2013 was $3. Now the prices for solar panels have reduced immensely over the past few years. In fact, they are almost half of those offered in 2008. This is due to a number of rebates offered through Federal, state and local programs.

To give you an idea of the final price to expect, here’s an example:

For most parts in Colorado, each resident will need a system that produces 4.38 KW to meet their home’s electricity needs. If, for instance, they require 18 panels that produce 180 watts each, the prices for solar panels at the rate of $4 per watt will come up to $12,960. By availing the 30% Federal tax credit alone, the cost of your panels will reduce to $9,072. So you can imagine how much you’ll gain with the other incentives.

Additional Costs You Should Know

Aside from the prices for solar panels, there are a few extra costs you have to pay before generating green energy.

  • The Cost of the Power Inverter – Used to convert DC to AC and ultimately connect you to the grid, a power inverter will cost between $1,000 and $3,000.
  • The Cost of Mounting Hardware – If your home requires the addition of standoffs, rails and other mounting system necessities, expect to pay an additional cost ranging from $800 to $2,000.
  • The Cost of Wiring – Electrical components, starting from wires to wiring boxes, will add around $1,000 to $2,000 to your total costs.
  • The Cost of Installation – Installation costs between $2,000 and $4,000 extra. Though you may want to install solar panels on your own, it may not be a good idea for you or the system.
  • The Cost of Monitoring Equipment – Whether you’re installing monitoring equipment or signing up for monitoring services, expect to pay an additional cost of $3,000.
  • Permits and Fees – Local permits and inspection fees may be added to the prices for solar panels. These can cost as low as $2,500 and go all the way to $6,000.

Before being overwhelmed by these, remember that you can save on these by applying for different programs and incentives. That way, the prices for solar panels and the additional costs you incur can burden you less financially.

For a better idea about the prices for solar panels and the costs related to installing them, your local solar panels dealer can be of assistance. When you fill out the form at the top of our home page, we can connect you to quality solar panel installers in your area.