Necessary Information for Computing Solar Panels Cost

Estimated Time to Read: 3 minutes

The idea of generating solar energy and using it to power your home or office can be fascinating. But the cost of installing solar panels can put off people from actually going ahead with the idea.

A good way to check whether you can afford the cost of installing solar panels is to compute the estimated costs using factors such as your energy consumption, the size of your house, and the type of appliances you use in the houses. The cost of electricity is also an important factor in calculating approximate expenditure you will incur when installing solar panels.

Energy Consumption Calculations

You will need to know the average energy consumption in your house every hour. You can compute it based on the last few utility bills or for the entire previous year. Divide the last month’s electricity bill amount by the average cost of electricity in your area. It will help you arrive at a figure for your monthly energy consumption. Divide it by total number of days in a month to arrive at an hourly average consumption.

Now, you can inquire about the cost of panels based on your energy needs and the amount of sunlight in your area. You will need to know the amount of power a square foot of solar panels can generate based on the availability of sun in your area. Consider the number with your home’s electricity use. Comparing the figures can give you some idea about the approximate investment that will be required for installing solar panels at your home or any building. The cost is measured as per watt of your requirement. Based on this figure, you will need the number of panels and associated components. Each panel will be able to generate a set number of watts every day.

The Cost of System Installation

The cost of installing solar panels will also depend on the components needed for the system. The cost will be for the panels, the battery, the inverter, and the controller. For large homes and buildings, the cost of installing solar panels will automatically increase. The price per watt that you will pay will depend on your utility company.

You can choose to use fewer panels if cost is a major factor for you. You will need to pay for the other components. But you can definitely reduce or increase the number of panels.

Incentives and Tax Rebates

You can reduce the cost of installing solar panels by factoring in any tax rebates you can get for using solar energy at home. Government also offers incentives to encourage more people to adopt solar energy for everyday use. The federal tax breaks for solar energy can be significant. Utility companies in some areas also offer incentives to consumers if they use solar energy.

Calculating the Cost of Installing Solar Panels

– It is best to ask solar energy installation companies in your area to provide you with quotes of installing a system. Solar contractors or engineers are the best people to help you arrive at the right cost of installing solar panels. Don’t rely on one company for the quotes. You can also check online resources on the websites of solar energy companies that help you compute installation costs.

– Before you ask the companies for quotes, examine your household energy consumption and assess what needs to be changed. Perhaps you want to use solar energy to power your entire house or use it just for heating purposes. Understanding your need for solar energy can help you relay the same to solar contractors so that they can provide you with precise (nearly) costs wherever possible.

– Before hiring a contractor for installing solar panels, take a day or two to understand if the costs justify the utility of the solar panels at home. Just taking a few days of time to think over the estimated costs can help you feel more confident about your decision. It can be helpful to remember that you are eventually going to recover the cost of installing solar panels by way of lower utility bills.

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