The cost of solar installation has been and will continue to be a significant part of the total overall cost for a homeowner switching to solar power.
The price that a typical homeowner has paid to get a non-leased, fair-priced solar panel system installed is approximately $1.00 per watt. This figure is only for a contractor’s solar installation service. For a typical 5,000 watt system this would be $5,000. Money from this figure goes towards an installer’s supply chain costs, labor, overhead, and profit margin. These numbers are, of course, averages. Some installers charge less, some more.
As stated in the cost of solar page, the total cost of an installed solar panel system is $3.50 per watt, on average. So installation services are about one third of the total cost for someone who wants to go solar.
While prices for solar power will continue to fall in the coming years, drastic price reductions are unlikely. This is because prices for the panels themselves have already fallen by more than 99% and low cost installers are already charging very reasonable service fees.
Here is a chart from The Solar Energy Industries Association showing a breakdown of solar installation costs –
It is noteworthy to mention that the figures from this chart were drawn from solar companies of all types and sizes. Numbers from small and fair priced companies were mixed with larger and more expensive contractors. The $3.60/watt total cost to get a solar panel system installed in the third quarter of 2014 is an accurate average for solar installers across the country.
The fact remains that many homeowners are still getting their solar panels from long term leasing companies. The costs for solar installation with these companies, as with all of the other costs, are hidden in the lease payment. The bottom line is that solar power gets pretty expensive after lease payments are added up for a 20 year term. Whether this high cost gets attributed to the panels or installation service, the numbers remain the same.
Instead of taking on a 20 or 30 year commitment, many homeowners are finding that they can get their own financing and have their solar panel systems paid off within 7 or 8 years at most. This, of course, is only possible when people seek out solar contractors that charge a very reasonable installation fee.
Solar-Power-Now.com only works with low cost solar service providers. These companies know that they can help many more people switch to solar power if they keep their costs low.