What Do Solar Panels Cost?

Figuring out what solar panels cost

Its the first question most people ask when considering renewable energy: “what do solar panels cost?”  These five simple words do not necessarily lead to a straightforward answer.

In short…. it depends.

There are a number of things that affect the cost of solar panels, from energy requirements to the type of system you are considering.  Before you install solar panels, you’ll need to consider various factors to decide how to best (and perhaps most cheaply) generate solar electricity.

Fortunately, in 2010, there are still government tax incentives and rebates to help ease the upfront burden.  In fact, some cities and counties may even help you finance solar panels through relatively small increases in your property taxes.

The more people that install solar panels, the cheaper they are!

Across the board, the cost of photovoltaic (PV) solar panels per watt has dropped significantly over the past decade.  According an article at Science Daily, “average installed costs, in terms of real 2007 dollars per installed watt, declined from $10.50 per watt in 1998 to $7.60 per watt in 2007, equivalent to an average annual reduction of 30 cents per watt or 3.5 percent per year in real dollars.”

And what a difference two years can make!  In 2009, the $1 per watt barrier was claimed to have been broken by First Solar.  But experts state that the true cost is closer to $2-4 per watt, when you include mounting costs and other necessary equipment.

Aside from the hard costs for solar panels, what can you do to minimize or reduce the actual financial outlay?  Plenty!

First, minimize your energy usage.  The less electricity you use, the less you have to generate.

Second, look for a package deal.  Some manufacturers will offer reduced pricing if you and several other property owners purchase at the same time.  You could either negotiate your own deal, or use a site like One Block Off the Grid to work out the details for you.

Third, consider long-term, as well as short-term savings.  Over time, your costs per watt will not rise, even when the utility companies raise their rates.  There is real value in this regard.  According to the Appraisal Journal, you can increase your property value by $20 for every $1 saved each year in electricity bills.  That means that a solar energy system that saves $400/year will add $8,000 to the value of your home.  It could pay for itself within just a few years!

You could wait to see what the solar panels will cost in 2011, or you could start saving some serious cash on your monthly bills right away.  No time like the present, I say!

Tags: cost solar panels, finance solar panels, generate solar electricity, install solar panels, photovoltaic solar panels, solar panels cost