Why are Solar Panels expensive?įor homeowners looking at the value of solar energy, the key question is: Why are solar panels expensive? Solar panel installation is a growing industry and, like any business, there are costs to both the market and install the technology.Įven then, solar panel installations are worth it in both long-term savings and eco-friendliness. It helps in the grand scheme of things and will save you a good chunk of money. You’re reducing your footprint by thousands of kilos of carbon dioxide when you use solar. What makes it a significant investment, however, is your contributions to the environment. Some can even get rebates for on-grid power return. Over its lifetime, a solar panel can pay for itself in electrical savings. It’s best to assess if the cost of the investment with solar analytics and estimates.Įven then, solar panels are worth it. Even with rebates, you’re looking at a steep investment for your home. If you’re an average consumer, it’s a big chunk of money. Prices change according to the number of panels and the system capacity. Prices can be around $3,000 for 1.5 kW solar systems up to $9,000 minimum for 10 kW panels. The average cost of a solar panel installation for a good quality Tier 1 solar panel can vary. ![]() It’s vital to know for yourself if the brand of the panel is worth the extra cost. Some newer, more inexpensive brands can cut down on the price of the installation. The price ranges of solar panels in Australia go down due to the changes in hardware. This costs between 5-10% of the solar installation cost, which is a must-pay cost. State governments need companies to secure permits and find certified installers. Permits and certifications are vital in the business. At 15-20%, this helps your small business solar company keep afloat and keep up with demand. Every business has to pay taxes and needs to have a margin. Engineers and electricians are not cheap to hire, together with a legion of labourers. While many solar companies are small owner-operator businesses, many need to hire certified people. Labour and employment costs will take up around 10-15% of the cost of a solar installation. This can be up to 20 percent of the cost. It can include solar monitoring, maintenance, repair, and even insurance costs. Overhead costs in your solar installations refer to the operational costs of the business. As there is steep competition in the solar industry, knowing how to reach customers is crucial. Marketing and sales can cost up to 20 percent of the price of the solar panel installation. The solar community is no different.Īll these soft costs make up around 75% of the total cost of the installation. So, what are these soft costs? Many businesses have expenses unrelated to the product they sell to you. Most of the cost comes from the soft costs – the non-hardware cost with solar panels. Hard costs refer only to the hardware price, and this is not too much. ![]() Solar panels, batteries, and components in the system make up 25% of the installation price tag. They split into two categories: hard costs and soft costs. These are crucial to the unit but, at the same time, make them more expensive. Breaking down the cost of Solar Panelsįor residential solar installations, every solar panel cost has some crucial price components. Why are solar panels expensive? The reasons may not be what you think they are. So, there’s a question on everyone’s minds. Solar panels, however, still command a significant overhead for residential and commercial applications. Additionally, solar power can go down to $1.33 AUD per watt after government rebates. Prices are about to decrease some more as technology undergoes further refinement. The price of solar energy systems has dropped by 8% since 2016.
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