Investing in solar panels for your home or business is a smart move, not only for the environment but also for your long-term energy savings. However, one of the initial questions that often arises when considering solar is, “What is the cost of solar panel installation?”
Let’s break down the factors that contribute to the cost of installing solar panels and help you understand the potential expenses involved.
Factors Influencing Solar Panel Installation Costs
- System Size: The size of your solar panel system is a significant factor in determining installation costs. Larger systems generate more electricity but also come with higher upfront costs. Your energy needs and available roof space will influence system size.
- Location: Your geographical location plays a crucial role in installation costs. Factors such as local labour rates, permitting requirements, and weather conditions can vary by region. Some areas may offer incentives or rebates that can offset installation costs.
- Type of Solar Panels: There are different types of solar panels available, each with its own price point. Monocrystalline and polycrystalline panels are two common options, with monocrystalline typically being more expensive due to their higher efficiency.
- Roof Condition and Design: The condition and design of your roof can affect installation costs. If your roof requires structural modifications or repairs before solar panel installation, this will add to the overall expenses.
- Inverter Type: Solar inverters are essential components that convert the electricity generated by solar panels into a usable form. The type of inverter you choose, whether string inverters, microinverters, or power optimizers, can impact costs.
- Labour Costs: Labour costs include the fees associated with hiring professionals to install your solar panels. These costs can vary depending on the complexity of the installation and local labour rates.
- Individual Household Energy Consumption: The amount of people who live in your household and the way you consume energy can also play a factor in what size system or solar technology best meets your needs and desired outcome, this varies from house to house
Estimating Solar Panel Installation Costs
While it’s challenging to provide a one-size-fits-all estimate for solar panel installation costs, a rough guideline is to expect an average of $3 to $5 per watt. This means that a 5-kilowatt (kW) solar panel system may cost between $15,000 and $25,000 before incentives.
With the solar subsidies provided by the government, you can expect to save $2000-$7000 on the upfront cost of your system, however, this subsidy decreases yearly every January 1st by 5%. This change is part of the phase-out program, aiming to reduce the rebate to 0 by 2030. The reduction should motivate you to move your plans for solar panel installation closer, as you won’t get much support next year or the year after. If you’re taking advantage of the solar subsidy there is no time to install solar panels like right now.
There are many reasons to consider making the switch to Solar sooner rather than later. With the cost of living soaring and showing no sign of slowing down any time soon, solar is a sustainable energy solution that will protect you from falling victim to rising energy prices. The cost of living crisis has also shifted homebuyer’s focus to finding property that is energy-efficient. By adding solar to your home you can increase the value of your property. Not only will having solar allow you to grow your savings pot but it produces profitable energy. If your solar panels produce more energy than you need you can sell this back to the grid.
Whilst there are many variables that can affect solar installation costs and the system you need, this is a process that can be made easy by consulting with a reputable solar business. At Solar Galaxy, we take a deep dive into the personalised needs of each household and each business that we service. We guide you every step of the way and take care of all the little things for you. We even continue to monitor your system years after the installation. The relationships we have with our customers is timeless and so is our support.
Ready to explore the cost of solar panel installation for your property? Contact Solar Galaxy for expert guidance and a tailored solar solution that aligns with your energy goals and budget.
Here I have added this section as a residential solar-centric point but you may want to edit it to accommodate businesses as well – customers need to understand solar isn’t a cookie-cutter approach, we often get clients who want the same system or pierce as their neighbour yet their household needs or business needs are completely different