The cost of solar panels explored

Migrating your home energy source from your local utility company to a solar panel system offers plenty of attractive benefits. But, it's not without a sizable investment. Most people who decide to make the move to solar power analyze their long-term cost of energy. Over many years, solar power yields significant energy cost savings for homes and businesses. Plus, you're no longer held hostage by the pricing whims and power capacity of a utility company. Is it worth investing in solar panels? Below, we're going to discuss the costs of solar panels. After reading this article, you'll be better-prepared to decide whether you should make the move to solar power.

Different systems for different needs

First, you need to define your needs. The size of your home (or business) plays a key role in the solar panel unit you purchase. A 2,000 sq. ft. home has different energy needs than a home twice the size. Also, consider how much energy your life will require. If your home has a pool that needs to stay heated, you'll needed a larger system. Likewise, if you need substantial light outside your home during the evenings, a larger unit may be required.

Why do solar panels cost so much upfront?

Photovoltaic solar panels are expensive. They use technology that is extremely dependable. In fact, these are the type of panels used on satellites in space. Having to repair them often would be disastrously-expensive. So, the technology is designed for long-term use. But, the panels are constructed with crystalline silicon. Manufacturing them is both time-intensive and costly. In the end, a complete solar panel system that has the capacity to provide a sufficient power source for a home with several rooms may cost up to $100,000.

Because of the high cost of buying and installing a robust solar energy unit, many people opt to install solar panels that are only big enough for certain uses. For example, solar panels that have the capacity to generate enough energy to heat a home swimming pool may only cost $3,000. A solar-powered water heater for the home may cost the same ($3,000). Most people who advocate solar power don't have the resources to invest in a unit that's big enough for their entire home. You can start small and build.

The high price of solar power declines

Recently, there has been speculation that the cost of outfitting your home with solar panels is going to decrease substantially. This is largely due to the silicon used to make the panels. A few years ago, there wasn't enough of the silicon to meet the crushing demand. That caused the price of solar panels to remain high. But, capacity is growing. Within a few years, the crystalline silicon should be plentiful enough to bring the cost of solar panels down.

Weighing and managing the cost of solar panels

While the price of installing a solar panel system is still cost-prohibitive, there are ways to manage the expense. First, the federal (and often, your state) government provides incentives for consumers who choose to "solar power" their homes. These often come in the form of tax breaks. Other organizations who promote the use of solar power offer special loans for those who wish to convert.

If you want to install solar panels for an alternative energy source, don't let the high initial cost dissuade you. While waiting for the price of silicon to drop, you can start small by installing units with limited capacity. Or, you can apply for tax incentives and special loans. In the end, powering your home from the sun's energy may be within your grasp.


More information