Solar Installation Costs: Making Sense of it All

“What’s a solar installation going to cost me…?”

This is the most frequently asked question from homeowners who are considering a solar installation on their property. It isn’t the same as reading a number off of a price tag. “It depends…” is always the answer you’ll get.

Here are some guidelines and examples that will help you estimate what YOUR solar installation costs will be.

HOW ENERGY HUNGRY IS YOUR HOME?

The average American home uses approximately 830 kilowatt-hours (KWH) every month. Your electrical usage will vary widely, depending on the season and what your energy use habits are. So, how can you gauge your electrical appetite you ask? Well a good place to start is to check out your monthly electricity bill. Most have an annual usage that will give you a good idea of how much electricity your home uses. And now with most utility companies billing you electronically, you can pull up your usage history on the web and generate a variety of graphs of your usage to give you an even better sense of how you are using energy in your home.

Great! Now you know how exactly hungry your home is. Now’s the time to consider steps to improve the efficiency of your home. This will make a huge difference on your solar panel installation costs. Every dollar you spend on making your home more efficient decreases the cost of your solar installation by approximately $3 to $5 US.

LOCATION, LOCATION, LOCATION – pertinent to determine your solar installation cost

Where you live also affects how much your solar installation will cost. Less sunny locations will call for larger systems to generate the same amount of electricity that a smaller system in a sunnier spot can produce. The number of peak sun hours in your area and average temperatures will also affect your system size and cost as they will effect the efficiency of your system.

A PLACE IN THE SUN

Even the sunniest regions won’t guarantee you good system performance unless you have unobstructed solar access. Your “solar window” is the daily access to the sun your system gets.

Remember the following planning when planning your solar installation:

a. Face south if at all possible, but east- or west-facing arrays could make sense in some situations;
b. Make sure your location provides enough space for the number of panels you need, possibly including room for expansions;
c. Make sure your solar installation’s location enables the entire array of panels un-shaded exposure to the sun between the hours of 9 am and 3 pm, year-round.

Compromising any of these conditions can mean having to increase the size of your system, which increases its cost.

A NIBBLE OR A BITE?

One of the beautiful features of solar electricity is its scalability. Planning ahead, you can begin small and build your system gradually if that fits your budget better. Perhaps your system could be designed to meet just a portion of your home’s daily needs.

FREE MONEY

The genius behind the exploding popularity of grid-tied electric solar installations is the possibility of generous financial incentives. In some states, rebate programs refund as much as 60 percent of a solar panel installation costs to you. Add state tax credits, exemptions, low interest loans and you will see how the incentives add up and exactly what all the fuss is about.

CALCULATE YOUR SOLAR PANEL INSTALLATION COSTS

Download our easy worksheet to figure out what a professionally installed
solar-electric system might cost you. If you have last year’s electricity bills
handy, grab them (or download them from your utility company’s website) and your calculator, and get started!

Decisions, Decision: DIY (Do it Yourself) OR GO PRO?

Not a decision you should be taking lightly when pondering your solar panel installation costs. Doing it yourself can realistically save you 15 to 25 percent. But, and this is a HUGE BUT, it’s important to realistically gauge your ability to design and install an efficient, code compliant and safe system. Not only to you risk damaging your home or greatly reducing its resale value if you perform the solar installation yourself, but some rebate programs actually require that a professional solar installer installs your system so be sure to check out your local, state, and utility rebate requirements before going “Tim the Tool-man Taylor” on your property.

Summing Up Solar Installation Costs

So, now you see why there is no “one-size-fits-all” sticker for determining your solar panel installation costs. But, with a little homework and understanding your options, you can plan a reliable and affordable installation. There are still many factors involved in a solar installation beyond just the design.

Don’t get caught off guard or unprepared to handle these important decisions. Because I know how overwhelming this type of home improvement project can be I created a complete eBook and Workbook to walk you through the planning, financing, and managing of a solar installation for homeowner’s (Click Here for More info). It’s called “The Homeowner’s Solar Installation Handbook: Your Comprehensive Guide to Planning, Financing and Managing Any Solar Installation on your Property.” This book will help you manage your solar installation.