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 Incentive Program in New York

This week, there is welcome news for New York residents who wish to add solar panels and other features to their properties.  A new solar incentive program will be offered by the New York Power Authority (NYPA) which joined forces with the Municipal Electric Utilities Association and the New York Association of Public Power.

In addition to federal tax rebates and incentives, New Yorkers can receive approximately 50% of the installed cost of a solar photovoltaic (PV) system, up to 10 kilowatts.  The solar incentive program in New York will help meet the state goal of 45% of its electricity generated by renewable energy by the year 2015, also known as the “45 by 15” plan.  Under the program, residential, commercial and municipal facilities are all eligible to participate.

We expect many people to tap into this program.  If you live in New York and are wondering what solar panels will cost, be sure to use a Solar Calculator, and then factor in the additional savings provided by the local solar incentive program.  Don’t forget the added home value when you install solar!

There are many benefits to solar power:

Solar panels in New York will now be more affordable

New York is not alone in offering a solar incentive program.  Other utilities across the country have implemented efforts to encourage solar investments, including the solar incentive program offered by Snohomish County PUD in Washington State.  That program allows up to $10,000 for qualifying solar installations.

The New York Power Authority is the country’s largest state-owned power organization. It provides low-cost electricity in New York State, and operates 18 generating facilities, plus 1,400 circuit-miles of transmission lines.  Regarding the solar incentive program, Richard Kessel, the NYPA’s CEO stated:

“In these difficult economic times, it is critical to do everything possible to alleviate the burden on New Yorkers coping with high electricity costs.”

NYPA anticipates it will be able to provide funding for approximately 50 to 80 photovoltaic systems statewide under the program. All 51 municipal systems and rural cooperatives and participants are eligible to participate.

For more information about the program, or how to qualify, be sure to visit the NYPA official website.

Solar calculator gives you cost of solar panels

You want to convert to solar power, but before you plan to do so, what is the cost of solar panels?  There are several tools that you can use to help you calculate the expense of a solar system, based on the size of your building.  But before we get to the solar calculators, consider these fast facts:

• Solar Panels are 50% more affordable than 12 months ago
• There are many ways you can save money with solar energy, including improved home value and reduced energy costs
• For every $1 you save in annual energy costs with solar energy, the value of your house increases by $20
• Even if you don’t want to install panels, you can still rely on solar energy without the investment

We have found several solar calculators to use in determining the size and cost of solar panels you may wish to install.  Just click on the links below and follow the instructions.  Keep in mind that the resulting figures are only rough estimates and some do not include federal or state tax incentives or rebates.

Coolerplanet.com solar calculator

Kyocera Solar PV calculator

Solar-Estimate.org

Calculate your solar panel costs with online tools

Just remember that using a solar power calculator is only the start of your inquiry.  Prices for solar panels may vary from manufacturer to manufacturer.  Ask around and see if there are any specials or other discounts.  In fact, you may be able to save even more if you join together with neighbors who are also considering solar panels.  Group discounts can be negotiated by companies such as One Block Off the Grid.

Your true cost of solar power can be less (or perhaps more) than shown by solar calculators.  In a related post we reviewed the factors to be considered in determining solar panel cost:

1. Current utility bills, averaged on a monthly basis
2. Projected future utility bills, over your estimated years of ownership of the property
3. Amount you may save annually in electricity bills
4. State and federal solar energy tax rebates and other incentives, such as no money down
5. Type of solar panel system you want to install: PV Panels or Solar roof shingles?
6. Other potential energy savings, through energy efficient bulbs, shutting off lights, adjusting thermostats
7. Other potential energy retrofitting measures, including windows, insulation, Energy Star appliances, etc.

Solar panels are a significant investment, but one that you often hear people say that they are glad they made.  Use a solar calculator to determine cost of solar panels, but do a thorough investigation.  You could save even more!

Good luck!