Much has been written on this site about solar panel prices and the overall cost of solar. This post is a continuation on that theme as the general awareness of the affordability of solar power is still something not widely known.
The price for solar panel systems typically range between $15,000 and $20,000. Some may cost less, some more depending on energy usage. A common, initial reaction to these numbers is “I don’t have $15,000 or $20,000.” This is a justifiable reaction, as this is a considerable amount of money even compared to the average home improvement project.
In actuality, these numbers are quite low because they represent a prepayment on 25 years or more of electricity usage. For a homeowner who would need a $20,000 system, that person would spend at least $40,000 on electric bills with a utility by not going solar. It’s at least this much because utilities have historically raised rates through the years.
Solar power is a long term investment, much like home ownership. This is how solar needs to be viewed.
Years ago, not having the cash for a solar panel system may have been an issue. This is not the case any more. There are currently numerous ways that one can get financing to go solar. Many financial institutions now offer home energy efficiency and green energy lending programs. There are also government sponsored programs to help people finance their solar investment.
Financing for a system will typically have homeowners paying about the same monthly amounts for their solar loans as they were paying their utilities. Instead of paying a utility, the majority of money spent for your electricity will be used to pay off your solar loan. Again, this is an investment. Much like making the transition from renting to owning a home, the savings are seen over the long term. They are not immediate. Solar loans can typically be paid off in less than ten years, leaving the homeowner will at least 15 years of free electricity.
Here’s another way to look at the savings possible with solar power. Homeowners should be asked – “Would you like your electric bills to be cut in half over the next 25 years?” Of course they would. This is what is now possible due to low solar power pricing.
Quite a few homeowners may be waiting for pricing to get even lower or efficiency to improve. It’s a better idea to start investing in solar now. The prices for the production of solar panels have gone from $70 per watt to as low as 50 cents per watt in 2015. Not only was this a dramatic price reduction, but there’s not much room left to go any lower. As far as increased efficiency is concerned, even if solar cell efficiency were to double it would not have a truly transformative effect on pricing. This is because the cost of the panels is only 25 percent of the total cost of going solar. Sure, there would be some savings, but it’s not worth waiting years for. Go to my cost of solar page to get more information.
What about installation costs? This is where homeowners can save the most. Finding a truly affordable solar panel installer can save thousands of dollars. The current solar industry is filled with all types and sizes of solar installers. The difference in pricing is just as varied.
Now is the time to go solar for those looking for great solar panel pricing.