What Factors Affect Solar Panel Cost?

What Factors Affect Solar Panel Cost?

Read Time: 3 Minutes

Investing in solar panels as a renewable energy source shows your commitment to relying less on grid power, and it also presents the potential for cost savings down the road. When making a financial decision like adding a solar panel system to your home, it’s important to examine factors that determine the cost of your unique solar solution. There are several points that could have a substantial effect on how your solution will look on installation day. We’ll discuss these factors below in detail. 

What Are The Major Factors Involved In Solar Panel Cost?

Your Location Matters

As you may expect, your location and the local weather patterns can play a significant role in how much your solar panel system will cost. The amount of cloud cover, rain and snowfall in your area on a yearly basis will impact how much solar energy your panels will gather. Of course, no matter where you live in the U.S., even locations in the rainiest or cloudiest climates are able to make use of solar energy. Indirect sunlight is just as capable of reaching solar panels, even through cloud cover. 

How Much Shade Your Home Receives Matters

Do you know how much shade is on your roof during peak sunlight hours? This could have a direct impact on how many solar panels will be needed to power your home, potentially raising costs on your overall installation and investment. This may be a fixable point: If trees are the cause of the shade, you could trim back or cut down the trees to ensure your solar panels have more direct access to sunlight. If the shade is due to the direction your home faces or the roof itself, however, it could impact your overall investment cost. 

Local and Federal Solar Incentives Matter

Many states offer solar incentives to entice residents to choose solar energy sources! You’ll want to check with your state and local governments to discover local programs in place. Some cities have solar rebates in place as well, so it’s well worth looking into all of these potential opportunities to save on costs. 

Beyond that, the federal solar tax credit is available to those who qualify. This provides a dollar-for-dollar credit of up to 26 percent of the total cost of the solar panel system as claimed on federal income taxes. The total cost of your solar panel system includes installation as well as the solar panels themselves, so it’s a good deal. This 26% credit is available through 2022, but this percentage goes down to 22% in 2023 and as of now, is not available for residential solar panels installed after that. That’s why it’s in your interest to install solar panels sooner rather than later!

Solar Panel Efficiency Matters

Solar panels come in two varieties: monocrystalline and polycrystalline. The difference between these two types starts with the creation process: Monocrystalline solar panels are made of one silicon crystal, while polycrystalline solar panels are comprised of a multitude of silicon fragments. Polycrystalline solar panels are more common as they’re easier to produce, but this comes at the cost of reduced efficiency. 

POWERHOME SOLAR uses tier-1 monocrystalline solar panels due to their increased efficiency in creating solar power. Their efficiency presents a potentially higher return on initial investment over time, and they are warrantied for a minimum of 25 years, meaning you’ll have plenty of time to enjoy the higher efficiency and superior quality of our monocrystalline panels. 

Ready to Go Solar? Talk It Over With Us

The cost of solar panels definitely makes them a sizable investment for your home, but one that could pay off over time with the potential for thousands of dollars saved off electric bills and a reduced carbon footprint for your home. POWERHOME SOLAR’s team would love to discuss your home’s solar future and provide you with a free quote. Let’s get started today!