Do You Know How Much Your Solar Panels Will Cost in 2023?

solar panel

If you try to look at the installation cost of your solar panels at home, then you will notice that it is steadily declining over the years. Nowadays, solar panels are also offering you more value for your money.

Solar panel cost is just one of the components of your complete solar system, hence if you want to find the total cost of your solar system, you have to consider a few more factors. However, homeowners these days can own their production of power more cost-effectively as compared to what they could a few years before.
So, if you want to install any solar system at home this year, then read further.
While installing a solar system, you need to consider the following 3 main factors, which will decide the total cost.

1. Price of solar panel per watt

This is the basic price that every homeowner needs to pay per watt that you get from the solar power system. This calculation is a very straightforward way to know how much your solar panel is going to cost you. You have to simply divide the total cost of the system by the total watts.
This figure can be used by homeowners for comparing directly with the value of different offers of solar panels. By knowing this price per watt figure, you can make an apples-to-apples comparison after getting different offers for solar panels from different companies.
Usually, this price per watt value is $2.75 per watt now. However, this price can vary if your project needs special adders e.g. ground-mounting, EV charger, a panel upgrade, etc.

2. Price of solar panel per kilowatt-hour

A kilowatt-hour is defined as the unit of energy required to consume 1,000 watts of power within one hour. The kilowatt-hour is the basis to evaluate the energy costs.
By using this price per watt, you can compare the relative costs, but the price per kilowatt-hour will be mostly used for showing the value of your solar power as compared to buying the same power from the utility.
As electric bill rates may continuously increase and buying a solar power system is considered as pre-paying for power for 25-years at a certain locked-in price, thus protecting the homeowner from the next 10 years of rate revision.
So far, the average utility price per kilowatt-hour is approximately 13 cents/kWh (that may increase) but the price range on a Solar system is 6-8 cents.

3. The installation cost of solar panel
For installing solar systems, the cost will not just involve solar panels only, but a few other components too. Even any basic solar system will consist of multiple important components like:
● Panels
● Inverter
● Mounting/racking system
● Conduits
● Electrical hookups.
Few systems may also need a few upgrades such as :
● Roofing improvements
● The main electrical panel of the home
Besides, these physical components, there are a few other soft costs too, like:
● Labor cost
● Engineering and design
● Permits
● Sales and marketing
● Interconnection applications.
You must understand that all these other components will be critical to better performance and also your high-quality solar system.