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How to Lower the Cost of Installing Solar Panels

Stephanie — Fri, 08 Apr 2011 10:20:28 +0000

Lower the cost of solar panel installation

Worried about how much you might have to spend to go solar? You’re not alone!

But if you learn how to lower the cost of installing solar panels, you can reduce your energy bills, and cut down on the upfront costs that are involved with going solar.

A new report from SunRun to the U.S. Department of Energy establishes that the cost of installing solar panels can be cut by 50% or more, which can make solar energy much more affordable.

SunRun is perhaps most well-known for its solar panel lease program, which allows consumers to lease a solar system from the manufacturer, pay reasonable, low-cost monthly installments and enjoy substantially lower electricity bills as a result.

But a solar panel lease alone is not the complete answer. To lower the cost of installing solar panels, land use permitting regulations must be streamlined across the board. Applications, inspections, reviews and delays cost us all dearly. In fact, researchers say that we can save about $.50 per watt by reducing red tape.

In order to lower the cost of installing solar panels, most experts agree that standardizing the process surrounding permitting, interconnection and installation is necessary. This is working well in Europe, and we need to implement the strategy here in the United States. To break down the log-jam that can occur at the municipal permitting level, SolarTech has issued The Solar Challenge, which calls for solar installation to go from closing the deal to interconnection in 60 days.

The overall cost of installing solar panels can be slashed by up to $1.00 per watt of energy!

Easy Ways to Lower the Cost of Solar Panels

Stephanie — Wed, 02 Mar 2011 10:02:00 +0000

Go solar and save money!

Want to switch to solar energy, but worried about the high cost? You are not alone.

Many homeowners consider the benefits of solar power, including lower electricity bills, guarding against utility rate hikes, reliability in the case of power outages and more. But, with the average residential PV solar panel array system costing at least $15,000, the price is often a deterrent.

There’s plenty of good news to consider, however. Solar panel prices have dropped by more than 50% in the last few years, and a trio of federal, state and often local incentives can further cut the price from 30%-80%.

Here’s five easy ways to lower the cost of solar panels for your home or small business:

1. Do an energy audit first. Figure out how much electricity you are already using and where you can save electricity. Wash your laundry in cold. Update to Energy Star appliances. Turn off and unplug items before you leave. Adjust your thermostat for overnight and during the day when no one is home. If you use less electricity, you may not need as many solar panels as you might think!

2. Assess the slope and direction of your roof and clear vegetation away. Solar panels are much less efficient when they are shaded, even if only a little bit. Make sure that you have a south-facing roof slope at an angle that can maximize absorption of UV light. Many solar panel companies will come to your property to do this assessment for free.

3. Consider negotiating a group discount. There are companies like One Block Off the Grid (1BOG) that work with solar panel manufacturers to get cheaper solar arrays when more than one person in your neighborhood or city joins you in going solar. You don’t have to personally know the other people, or ask them yourself. Simply go to the website, type in your zip code and you’ll be connected with other people in your region with whom you might benefit in scoring a discount rate on solar panels.

4. Maximize solar incentives. Between rebates and tax credits, the government would love to see us switching to renewable energy. Research the incentives in your state first – some have new programs, but in other states, solar funds are running out. Many solar installers and manufacturers will help you prepare the paperwork as part of the cost of their services. But when it comes to solar tax credits, talk to a CPA.

Save money on your solar panels

5. Lease solar panels instead of purchasing them. A solar panel lease is quickly becoming one of the easiest ways to go solar with little or no money down. The manufacturer installs, owns, maintains and often insures the panels. You pay a monthly fee – less than your current electricity bill – and enjoy the benefits of solar power, including fixed cost for power over the term of the lease (usually 15-25 years). Solar leases are also usually transferable if you sell your property. As with any legal document, be sure to carefully review its terms before signing!

Now that you know these easy ways to lower the cost of solar panels, why not start taking steps to make the switch?

Solar Panel Efficiency Increase of 300%

Stephanie — Fri, 18 Feb 2011 10:39:36 +0000

Two of the things solar panels are most criticized for are price and efficiency. People grumble about the cost of solar panels and their relatively low conversion rate – how much energy from the sun can be turned into usable electricity.

Photonics can increase solar panel efficiency by 300%

Over the last few years, the cost of solar has dropped dramatically. Now, there is news of a potential solar panel efficiency increase of 300%. Researchers at HyperSolar have developed a film that can move certain light spectra to increase the conversion rate (and thus efficiency) of solar panels.

The solar technology, which uses photonics, also has the promise of further cutting the solar panel installation costs in half, from already reduced figures. Developed in the U.S., cutting edge renewable energy tech like this is important to keep the country as an energy leader.

Demand for cheap and efficient solar panels is rising as installations are increasing worldwide. Projections estimate that the 16 gigawatts of solar power that have already been installed globally will increase to 1,800 gigawatts over the next 2 decades!

Save Money Installing Solar Panels

Stephanie — Thu, 17 Jun 2010 10:30:13 +0000

Going solar one panel at a time

Many people are scared off from installing solar panels due to the cost. However, there are several important things to keep in mind when budgeting the actual cost.

First, there are a number of different ways that you can use to finance solar panels. Whether you enter into a solar power lease, or use a property tax assessment loan (your local government “pays” for the solar panels and the cost is included on your annual property tax bill), the upfront cost can be reduced. In addition, keep in mind that solar panel prices have dropped 50% in recent years, while tax incentives and rebates have grown significantly.

Perhaps most importantly is the fact that for every $1 you save in electricity costs each year, your property value increases by $20.

Solar panels saving you money

If you still have concerns about the cost of solar panels, consider this unique approach. Instead of considering how to take your home completely off-grid with an entire solar panel array, you can literally self-finance solar power at your house by installing panels one at a time.

By purchasing a PV solar panel kit at your local hardware store (or Costco), start defraying your overall energy costs month by month. If your monthly electricity bill drops from $100 to $60, then take that $40 and set it aside. You can use that money after a few months to purchase additional solar panels. Over a few years, you’ll probably have enough savings to cover your roof with enough panels to power all your needs.

Yes, you can truly save money installing solar panels!

5 Frequently Asked Questions About Solar Power

Stephanie — Wed, 14 Apr 2010 11:21:34 +0000

FAQ About Solar Power

After writing this solar blog for the past several years, I get many of the same questions from readers. You might be wondering about these issues yourself. So, without further adieu, let’s go over the 5 most frequently asked questions about solar power.

1. How much do solar panels cost?
The answer to this question depends on several factors, including your average monthly electricity bills, amount of solar exposure and solar radiation, number of panels purchased, available tax rebates and incentives, and whether you buy or lease, or use a solar financing program. Generally, a solar panel of 110-140 watts will cost about $500-600 retail. Depending on the size of your home and electricity needs, you may require 6-16 panels (there is a 2400 square foot home across the street from me with 10 solar panels installed).

Federal and state rebates can allow you to recoup 30-90% of the cost of solar panels. There are also programs that allow you to purchase or lease solar panels with no money down.

2. How much can I save on monthly electric bills?
If you install enough solar panels and cut down on power usage, you can have a zero electricity bill. Some people generate more solar electricity than they use, which can then be sold back to the utility through net metering. Laws vary from region to region, so be sure to check with your local government, as well as your electricity provider.

In short, you could say goodbye completely to any electricity bills – including future rate hikes!

Solar panels going up!

3. How long does it take to recoup your investment?
Again, it depends. Let’s say your annual electricity bills were $1000. After installing solar panels, they are now zero. If you invested $7000 on a solar panel system, simple math would say that it’s a 7-year recoupment period. But this does not take into consideration increases in utility rates (to which you would not be subject), nor the increase in value of your property from solar panels.

Experts say that for every $1 you save on annual electricity bills, you experience over a $20 increase in value for your home. That’s over $20,000 with this example.

4. How long will the solar panels last?
In general, new solar panels have a life expectancy of 25-35 years. Most can be installed with very little maintenance thereafter. Just be sure to clean them periodically, remove debris, snow or any other item that blocks absorption of sunlight. Even low-hanging branches can impact the efficiency of your solar panels. Some solar manufacturers include free maintenance with installation. Be sure to ask!

Going solar is one of the easiest investments in renewable energy!

Install solar panels and then let the sun power your life

5. Will my system become obsolete?
Certainly, solar research and development is continuing. Each month, new publications describe advancements in efficiency and lower prices for solar panels. While thin film solar technology does hold great promise in the future, for homeowners interested in going solar right now, photovoltaic (PV) panels are still the gold standard. Take your cues from corporate America, which continues to put PV panels on their rooftops to generate clean renewable power.

Overall, going solar is a sound choice for many property owners. Do your research, compare and contrast bids, and be sure to maximize incentives and rebates.

Oh, and be sure to enjoy getting zero balance electricity bills!

What Do Solar Panels Cost?

Stephanie — Fri, 08 Jan 2010 11:07:26 +0000

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!

Solar Power Incentives in Washington

Stephanie — Sun, 27 Sep 2009 00:52:06 +0000

Solar power incentives in Washington

This post follows up on the first one in a series that was entitled “Solar Power Incentives in Oregon.” Washington State, to the north, also boasts a number of generous tax and other incentives to encourage investment in solar power. We’ll review each of them here, including links and information needed to go solar.

With reduced costs and greater efficiency, solar panels are becoming mainstream faster than you can say, “low electrical bills.” And, with every $1 you save annually on power, your property increases in value by $20. Perhaps you’ll save $500 per year? That’s an automatic $10,000 equity boost, right from the start!

Definitely keep this in mind when considering the cost of solar panels.

Install solar panels in Washington state

In order to encourage people to install solar panels, Washington offers several key incentives. These are in addition to federal energy tax credits, which can be combined to reduce the cost of solar panels by more than 50%.

Perhaps most notable is the state law that waives 100% of the sales tax on purchase and installation of PV and/or solar hot water systems, through 2011 (hopefully the Washington Legislature will extend this generous offer).

In addition, if you qualify for a Bonneville Environmental Foundation (BEF)-Renewable Energy Grant, you could save up to 33% of capital costs for purchase and installation of solar power in Washington. Visit their official website to learn more about the application process.

Under the terms of Senate Bill (SB) 5101, consumers can obtain an annual tax credit for small scale solar systems that are connected to the grid. The Department of Revenue requires you to fill out a form that you must submit to your local utility, provided they are participating in the program (most are). If you’ve purchased solar power equipment that was manufactured in Washington, enjoy an additional credit up to $2,000 annually.

All this saving with solar power is worth singing about!

As with the first post on Oregon, here is a list of the solar power incentives in Washington state, with credit to the DSIRE (database of State Incentives for Renewables and Efficiency):

Industry Recruitment/Support

Tax Abatement for Solar Manufacturers

Local Grant Program

Private Grant Program

BEF – Solar 4R Schools

Production Incentive

Sales Tax Exemption

Renewable Energy Sales and Use Tax Exemption

State Grant Program

WSU Extension Energy Program – Manufacturing Efficiency Program

Utility Grant Program

Utility Loan Program

Utility Rebate Program

Just a few years ago, Washington State was criticized for not providing adequate, meaningful solar power incentives. Looks like the Evergreen state is stepping up to the plate, now. If you have utilized any of these programs, we’d love to hear your experiences. Please leave a comment below.

And, for more information and resources concerning solar power in Washington, check out Solar Washington.org.

Solar Panels 50% More Affordable

Stephanie — Fri, 28 Aug 2009 02:38:42 +0000

Solar panels 50% more affordable

What a difference a year makes! Solar panels are up to 50% more affordable now than they were 12 months ago. Add to that price differential the generous government incentives and tax rebates, and people are finally thinking that it may make sense to go solar. How would it feel to have free electricity each month? And, you’ll be able to guard against future rate hikes too!

The cost of solar panels does vary from state to state, depending on the market. While some areas are enjoying a 50% drop in solar panel prices, other regions are still experiencing at least a 40% reduction in retail cost.

So what has driven the price drop? Analysts at the investment bank Piper Jaffray notes that an increase in supply of polysilicon, which is an important element for solar panels, has had the effect of lowering prices. The combined effect of lowered prices, plus federal and state rebates, has reduced the ROI (return on investment) time period to about 13-15 years (not including calculations of increased utility rates and improved home value as a result of renewable energy installations). Oh, and don’t forget the green factor!

The increased supply of polysilicon has been flowing from China and other countries. A recent New York Times article examined this supply/demand effect:

“A ton of production, mostly Chinese, has come online,” said Chris Whitman, the president of U.S. Solar Finance, which helps arrange bank financing for solar projects.

Not only did the supplies increase, but demand dropped – at least in Europe, which has been the largest solar market. Chalk that up to the economic crisis in Spain, which cut its subsidy for solar panels last year due to budgetary concerns.

Solar panel prices are declining

If a 40-50% drop isn’t enough for you, solar panel prices are projected to continue to decline. And that bodes well for consumers, as well as manufacturers! This is because, as more people install solar panels on their properties, their friends and neighbors will become interested in doing so, too. Once solar becomes more of a “norm,” perceptions will change and others will consider investing in solar.

To quote one of my favorite sayings: All ships rise with the tide. In other words, more people installing solar panels helps the solar industry, as well as consumers!

How might the fact that solar panels are 50% more affordable help you? Consider this example, from the New York Times article:

“Mr. Hare in Texas cited the larger tax credit, which sliced about $23,000 from his $77,000 bill, as a major factor in his decision to go solar, in addition to the falling panel prices. Sensing a good deal, he even got a larger system than he had originally planned — going from 42 panels to 64. The electric bill on his 7,000-square-foot house and garage has typically run $600 to $700 a month, but he expects a reduction of 40 to 80 percent.”

Have you been considering solar panels? Now might be the time – before tax rebates and incentives are slashed, and while prices are low!