How Much Do Home Solar Panels Cost? 5 Key Factors

The idea of going green is the in-thing today. Calls for sustainability are on the rise as the world is becoming more aware of the need to preserve natural resources. Regarding energy, green sources are typically less harmful to the planet earth and are often renewable. One of the most popular green energy sources is solar panels. Many homeowners intending to install solar panels get skeptical because they’re rumored to be costly. But is solar panel cost too high? It helps to understand what determines the solar installation costs of home solar panels. Below is a comprehensive breakdown.

1. Type Of Solar Panel

There are three main types of solar panels. Each one has its own price tag, as explained below:

Monocrystalline Solar Panels

These are made of silicon wafers having a single continuous crystal lattice structure. The silicon crystal is grown in the lab into a cylindrical form referred to as an ingot and then sliced into thin discs. Each disc is then trimmed along the edges to form an octagon. This way, the silicon molecules are perfectly aligned, ensuring high efficiency, usually around 15-20%. And this means you’ll need fewer of these panels to produce the same amount of energy as the other types of solar panels. And this makes them the most expensive type.

Polycrystalline Solar Panels

These are made by melting fragments of different silicon crystals, pouring the liquid into a mold and then cutting it into smaller square wafers, otherwise known as solar cells. These are arranged in rows and columns to form a solar panel. The crystal isn’t extruded as a single pure ingot like in monocrystalline panels. Thus, polycrystalline panels are less efficient than  monocrystalline panels, about 16 to 18%. Meaning you’ll need more of them for solar power generation. They’re less expensive than the monocrystalline panels.

Thin-Film Solar Panels

These are lightweight, flexible solar panels that you can simply stick onto your roof. Their electricity producing layers are hundreds of times thinner than those of other solar panel types, sometimes as thin as one micrometer. Their efficiency is generally lower than that of traditional panels, usually about 7 to 18%. And they’re the least priced.

With this knowledge, you can choose the residential solar panel type that fits your needs and budget. Companies like worldsolar.co.nz offer free consultations, through which you can inquire about these different types of solar panels and the related costs.

2. System Size

Every home has varying electricity needs. The size of the solar system ideal for your home depends on the number of electrical appliances you use and the amount of electricity they consume. This includes refrigerators, washing machines, ovens, air conditioners, heaters, dryers, dishwashers, and pool pumps.  The more appliances, the higher the solar panel costs.

Another factor that determines the solar system size is the roof pitch. The angle of installation of the panels affects their power production. Panels that are too inclined won’t produce as much solar energy as those that receive solar rays at a favorable angle for the most part of the day. Thus, you may need more solar panels for steep roofs, and this increases the costs. It’s also risky installing solar panels on high-pitched roofs and this further drives up the costs.

The location also matters. Homes close to the equator are the best as the sun’s path is more perpendicular, ensuring the panels effectively capture sunlight. For higher latitudes with lower sun angles, you may need steeper roofs to maximize sun exposure.

In New Zealand, a 2kW system costs about NZD$7,000, a 5kW system NZD$12,000, and a 10kW system NZD$22,000 on average.

3. The Solar Panel Brand

Not all solar panel manufacturers produce the same products. Some are known to produce solar panels with higher efficiencies, and these cost more. For instance, SunPower solar panel brands have efficiencies of up to 23% and cost more than Panasonic panels which have an efficiency of 22.2%.

4. Type Of Mount

The type of mounting system determines the overall cost. Fixed mounts are the most affordable.  Ground mounts follow, then adjustable mounts, which you can raise or lower to better receive sunlight. Finally, the dual-axis tracker automatically follows the sun throughout the day to maximize exposure. They’re the most expensive.

5. Financing

You can pay for your solar installations by cash outright. Cash purchase allows you to get solar incentives if such programs exist in your area of residence. Governments give these incentives to encourage the adoption of green energy by as many people as possible.

A rebate is a one-time incentive for solar installations usually given by government agencies or utilities. Tax credits are a dollar-for-dollar deduction off your income taxes that you’d normally be required to pay to the government. Co-funding is where the funding agency contributes a percentage of your project’s cost, as the Energy Efficiency and Conservation Authority of New Zealand does. These incentives reduce the cost of your solar equipment and installation costs.

If you choose to get a solar loan, you’ll be able to power your home with little capital outlay. However, the overall cost will increase by about 3 to 36% depending on the interest rate and loan duration.

Conclusion

The cost of a residential solar system depends on a variety of factors, as explained. To know the exact costs for your home, you’d want to consult an experienced contractor who can design a system with adequate capacity. Alternatively, if you have the skills and time and would like to do it yourself, sophisticated online solar calculators can help you get estimates for the project.