The price of solar panels is probably going to keep dropping over the next decade.
GECONA SOLAR are exported all over the world and different industries with quality first. Our belief is to provide our customers with more and better high value-added products. Let's create a better future together.
Solar has already become half as expensive as it was 10 years ago. New federal incentives that are giving certainty to the solar industry will likely push the price down even further. The combination of cheaper panels and new incentives helped drive record rooftop solar installations in .
So, if solar panels are getting more affordable, why buy them now? Why not wait, say, another decade for an even lower price?
Can solar panels save you money?
Interested in understanding the impact solar can have on your home? Enter some basic information below, and we&#;ll instantly provide a free estimate of your energy savings.
"The data will tell you the time to invest is now. And timing the market is a fool's errand," said Ed Hirs, an energy fellow and lecturer at the University of Houston. "If it makes economic sense for you today, it's not going to make less economic sense for you tomorrow."
How do you make your own decision on the right timing for home solar panels? Here's what to know to make an educated choice.
No one can predict the future. That said, solar experts have reached a general consensus on where the industry is going next.
"Are there better techniques ahead? Yeah, maybe," Hirs said. "Are things going to become cheaper? Potentially."
Pamela Frank, vice president of energy consulting firm Gabel Associates, recently told CNET that the federal solar tax credit -- which will be in place for at least the next 10 years -- gives solar manufacturers the confidence to scale up operations and reach new economies of scale.
But there are some headwinds, too. The supply chain issues that have roiled the globe for years have inflated prices on most consumer goods, including solar panels. In the residential solar market, that caused a slight increase in prices.
Solar in the US is also more expensive than in other countries, owing to higher permitting and overhead costs. These "soft costs" might not fall as quickly as the cost of the panels themselves.
The map below shows the average total cash price, cost per watt and system size for a solar panel system in your state, according to data from FindEnergy.com. The prices shown don't factor in tax credits or state incentives. States that don't have any FindEnergy solar data and are grayed out on the map.
There's no way to know for sure.
Contact us to discuss your requirements of All In One Solar Power System. Our experienced sales team can help you identify the options that best suit your needs.
"In any type of technological advance where a lot of money is being invested, it's kind of like trying to catch a knife," Hirs said.
If solar prices continue the same general downward trend from the past decade, waiting a few years could save you a couple thousand dollars. But again, this depends on a lot of factors, including where you live and what type of solar system you're installing. (Not to mention which installer you use.)
As solar and energy storage become more popular in the US, however, you could unlock some savings as the technology itself becomes more common. And if you partner up with your neighbors, you could even snag a group discount by giving an installer a big batch of work in the same neighborhood.
Right now, solar only accounts for 5% of US energy production, which means there's a lot of untapped potential -- and empty rooftops -- across the country. If solar adoption takes off, that will bode well for the industry, and for the prices that consumers see on their installation bill.
Supply chains for solar panels are improving as the industry grows. That's bringing the prices down, making going solar more affordable for homeowners and energy companies alike.
While the cost of waiting to install solar might not be as easily quantifiable, Hirs says there are some tangible drawbacks to delaying an installation.
It mostly comes down to how much you value a reliable electricity source -- especially in an era where electrical grids are becoming less reliable.
"The value of solar and any storage capacity that one has is the value of 'lost load,' as we call it in the business. In other words, what's the opportunity cost of having your power go out for a day, or two days, or three days?" Hirs said.
If you have essential medical equipment in your home, for example, you might not be able to afford to lose power for any amount of time -- making solar and energy storage a critical investment, regardless of potential future price drops.
But there are even more prosaic reasons to invest in solar sooner rather than later, according to Hirs.
"For those who can afford it, solar is a great safeguard to keep your air conditioning going, to maintain your home &#; in the face of grid failure," he said. Having what is essentially a backup source of energy can insulate you -- literally -- from the costs and frustrations of power outages. It's why "we see in the wealthier neighborhoods, folks stacking solar panels on their homes," Hirs said.
By waiting to install solar, you could also lose out on some of the incentives that make it more affordable. While the federal solar tax credit is guaranteed for the next decade, state-level incentives are much less secure. In fact, policies like net metering and tax benefits are often subject to the political whims of elected commissioners.
When it comes to state-level policies, consumers are still riding the "solar roller coaster," according to Kevin Jones, director of the Institute for Energy and the Environment at Vermont Law and Graduate School.
Five or 10 years from now, your local electric utility might not have such a generous payback rate for the excess electricity your solar panels generate. In California, for example, state regulators recently cut the credit value for excess energy by 75%.
With that level of uncertainty, you might stand to lose a lot if you hold out for the potential of lower solar costs down the line.
*Based on a $29,926 10.8 kW system before incentives. These are averages for the whole U.S. Costs will always vary from installation to installation.
**Based on a study by the National Renewable Energy Laboratory (NREL).
The panels themselves are probably the first thing that comes to mind when you think about going solar, but solar panels represent less than a third of the total solar equipment costs. You can expect all required solar equipment, including supply chain costs and sales tax, to cost $13,800&#;about 46% of the total system price.
This price depends on the brand and quality of the equipment you select. Systems with SunPower panels, known for a strong warranty and high efficiency, see the highest average prices. You'll pay about $27,500 after tax credits for a 10.8 kW SunPower system after the federal tax credit. Sometimes the bigger price tag is worth it: Investing in high-quality equipment can lead to better long-term savings. But reaching for the highest-priced panels often isn't the best choice. There are many high-quality options with varying price points.
The type of panel you install also directly impacts the quality of your installation. Monocrystalline solar panels offer the highest efficiency and power output and are used in most home systems today. They're often more expensive than polycrystalline solar panels, but you need to buy more polycrystalline panels for the same amount of power, so your overall installation costs may be similar. Thin-film solar panels are the cheapest type of panel, but they aren&#;t often used for home installations due to their low production. They're a great option for RVs, campers, and DIY home setups.
Inverters can cost almost as much as solar panels depending on the type you select. They convert the direct current electricity your solar panels produce into alternating current that household appliances use. Microinverters and optimized inverters are similar in price but cost a few thousand dollars more than string inverters. If you have a complex roof with multiple planes or shading, it's usually worth it to select a pricier microinverter or an optimized inverter to maximize your system's production.
Racking and mounting equipment attaches solar panels to your roof, but it's a relatively low-cost portion of the installation. You'll also need wiring to connect your rooftop system to the grid and your electrical panel, which can add a few thousand dollars.
Another piece of the solar installation puzzle is the company performing the job. Solar installers charge varying amounts for their services. The final price they offer depends on their track record, warranty offerings, and internal operations. A well-regarded solar installer with premium warranty offerings will often charge more&#;and it will usually be worth the money.
Installer costs are about the same as equipment at around $13,800 or 46% of the total installation. Labor is only about 15% of installer costs and profit is generally around 20%. Your biggest installer costs go toward sales, marketing, and overhead.
Want more information on Cheng Longjia? Feel free to contact us.