What Makes Solar Panels So Expensive

If you want to save money on energy bills, one of the things you can do is to go off-the-grid. This means using alternative power sources and not relying on your local electricity provider for your energy needs. There are many options for you to choose from when you decide to create your own electricity, and one of the most popular options people turn to when going off-the-grid is considered is solar.

Going solar is a logical choice since the sun is there and it is a free source of energy that you can have at least 12 hours every single day. While the power of the sun’s rays is free for you to harness, the equipment needed for you to do that is not. In fact, solar panels and the other equipment needed for you to use solar energy for your home can be downright expensive. Why are solar panels and all the other parts of a solar power system expensive?

Reason for the High Cost of Solar Panels and Solar Power Systems

Going off-the-grid may be a cost-effective way to reduce energy costs, but the price you have to pay to get this done can make such a move seem counter-intuitive. The main reason why solar panels seem expensive is because of the other costs that come with having them. This means that the panels are not what make this system expensive.

The panels and other parts of your solar power system make up around 25% of the cost. This means the hardware costs you only a fourth of what you are paying to have your house on solar. What other costs are jacking up the prices of your solar power system?

  • Installation and labor costs – the installation of your solar power system requires more than just putting the panels on your roof and hooking your home up to it. There are a few other things that solar panel installation companies need to do to ensure that you get what you need from the system that you bought, and the labor costs as well as installation costs for doing this can account for 10% of the overall cost of your solar power system.
  • Taxes and permits – recently, the US government increased taxes on the importation of solar panels, which in turn got passed on to consumers by the companies that imported these panels. Permits for installing these panels can also cost you around 5% of the total cost.
  • Marketing, sales, and other company expenses – the price of your solar power system is also jacked up by the sellers to cover the expenses they incurred in selling such items. The price for your system will include the company’s marketing costs, the cost of employing sales crew, the rent of the company’s store, and of course, their profit. You can also include in this the sales tax and other expenditures involved in selling these panels, which roughly translates to around 60% of the overall price of your solar panels.

How to Lower Your Solar Panel Acquisition Costs

While there is nothing you can do about lowering the tariff on imported solar panels or the amount that a company adds to the total cost of your solar power system installation plans, you can do some things to lower overall costs. One thing you can do is to take advantage of incentives and rebates that are being offered to those who choose to convert to solar energy in Florida. Another thing you should do is to partner with a solar installation company like Solar Wired that has affordable residential solar power solutions for you to choose from.

Find out how you can convert to solar today by contacting us at 844-202-7414 and we will gladly schedule you for a free evaluation and estimate.

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