Cost of Solar Panels: Should You Really Pay More for Green Energy?



Price doesn't have to be an insurmountable challenge to anyone wishing to use solar energy.  Learn more about what you can expect from the cost of solar panels.

Easily one of the main reasons that many people have not yet switched to green energy is cost.  Although prices of solar panels and solar power systems have gone down in recent years, they cannot be considered cheap -- at least, not yet.  However, price should not prevent people from considering solar energy.  There are ways to get around this problem and with enough information, it's possible for many home and business owners to finally tap a cleaner source of energy to use.

What determines the cost of solar panels?

The selling price of solar panels is generally determined by their dimensions or physical size, durability, brand, wattage and warranty period.  To make things simpler, most manufacturers will offer their products on a price per Watt basis.  A 20-watt solar panel, for example, is capable of generating a maximum of 20 watts of electricity per hour.  If you choose a 40-watt system, expect the cost of the solar panels to be twice as much the cost of the 20-watt system.

Keeping the cost of materials and size of the panels in mind, you might invest about $6 to $10 per watt.  Of course, cost will increase if you will be paying a company to install the system.  All in all, the cost of solar panels could set you back in the tens of thousands of dollars.  The good news, however, is that there are incentives and tax rebates that will cut it down further, which should give you a price range of a low $5,000 to a high of about $10,000.

Is it all about cost?

A common mistake that people make regarding solar panels is focusing too much on cost.  It simply does not determine everything.  First, the priciest solar panels may offer a high wattage that a homeowner may not really need.  All it gives is excess power that may not pay for itself, unless of course this excess energy is passed on to the grid in exchange for compensation.

Secondly, a cheaper solar panel that has a 10-year warranty may be a better choice for someone who lives in a non-critical area and can easily tap the grid.  It would also be a mistake for someone to buy low wattage solar panels just because they are cheaper if they require a critical power system.  Cheaper solar panels may be light on the pocket but they cannot be expected to perform as well as more robust systems.

Should you DIY?

Building and installing your solar panels on your own can significantly reduce their cost.  One, you don't have to pay any inspection or installation fees.  Two, many manufacturers sell solar panels in kits, instructions included.  Buying a kit is a lot cheaper than buying parts and materials individually, thus bringing down the cost of solar panels significantly. 

Should you decide to put together a solar power system, make sure that you choose a kit that not only works and is backed by a reputable company but is also designed to accommodate your level or expertise.  If you can't follow instructions or have poor understanding of how the system is supposed to work, you could end up with a costly, unfinished project in your hands.