Did you know there are about 2.7 million residential solar panels in the US today? At first, the idea of solar energy probably seems pretty cheap. But when we think about the prices of getting solar panels for the first time, it may be more than just paying for one.
Do you want to be more environmentally friendly and safeguard against excessive electricity bills? People worldwide are integrating more clean energy resources, with installations steadily increasing in some countries. Although solar panels can be pretty expensive upfront, they’re also one of the best long-term investments you can make in a home.
So why is solar so expensive? Read on to learn the factors affecting their prices and why it is a great investment today for your home.
Solar Panels in a Nutshell
Solar energy is a renewable, non-toxic, and environmentally friendly energy source from the sun. It has been around for centuries but became more popular in the 1970s. People began to see the benefits of solar energy because it is free, pollution-free, and doesn’t require any infrastructure.
On the other hand, solar panels are energy devices that use sunlight to generate electrical power. They are typically made from glass, plastics, or metal and can be mounted on roofs or facades to capture solar energy. Solar panels generate electricity when the sun shines on them, which you can use to power homes, businesses, and other devices.
Why Is Solar So Expensive?
The upfront cost of a solar panel is high and can cost anywhere from $5,000 to over $20,000. Here are a few reasons they are so costly:
Require a Lot of Sunlight to Work With
Solar panels are so expensive because they require a lot of sunlight to work. Solar panels need about eight hours of direct sunlight daily to produce enough electricity to power an average household. That means solar panels are most efficient in the morning and evening hours.
Takes a Lot of Space
Another reason solar panels are expensive is that they require a lot of space to install. A typical solar panel installation requires at least 2 square feet (0.2 square meters) of space on top of your home or building. That’s especially important if you want to use your solar panel system for storing energy in case there’s not enough sunlight available during peak hours.
Solar Panels Are Expensive to Install and Maintain
Gas prices have been rising for several years now, and energy experts believe that this increase in fuel costs is partially responsible for the decreased popularity of solar energy. Solar panels may be easy to maintain, but they are also expensive to install and maintain, which is one of the reasons why solar power has historically been a more expensive option than other forms of energy.
Solar technology isn’t perfect yet, and production costs continue to increase. Currently, most solar panels produce about 30 percent less energy than they used to due to increased manufacturing costs and technological improvements that make solar cells more efficient.
Solar Technology Is Still Relatively New
Another factor contributing to the high cost of solar power is that solar technology is still relatively new. Solar panel manufacturers are constantly innovating and developing new products.
Which means each panel costs more than the previous version. Despite these increased costs, many people feel that solar energy is worth investing in.
It is environmentally friendly and potentially saves money in the long run. Solar energy is becoming more affordable as technology updates and competition reduces the cost of solar panels.
Solar energy may be the most affordable energy available in the future, especially if subsidies are offered to help offset the costs. Solar power is seasonal, so it can be unreliable during peak demand when the grid needs more energy from traditional sources such as coal or gas.
Types of Solar Panels
There are a few types of solar panels available on the market today. The three most common types are thin film, silicon, and crystalline.
Thin film panels are made of a very thin layer of material deposited onto a substrate. Silicon solar panels are made from a single sheet of silicon coated with an anti-reflective coating. Crystalline solar panels use a series of small cells to create an image on the panel.
The main reason that solar panels are so expensive is that they require high-quality materials and manufacturing processes. Thin film and silicon solar panels need more processing than crystalline solar panels.
It leads to higher production costs. Additionally, thin film and silicon solar panels have lower efficiency than crystalline solar panels, contributing to their higher prices.
What Are the Benefits of Solar Panels?
The main benefit you can get when you buy solar panels is that they are renewable and sustainable. Unlike finite fossil fuels, the sun constantly replenishes solar energy.
Solar power does not emit harmful greenhouse gases, making it a clean energy source. Solar panel systems are also relatively low maintenance, as they don’t require fuel or water.
Although the initial cost of solar panel systems can be high, they will eventually pay for themselves through reduced energy costs. Several state solar savings programs are available from which you can benefit if you shift to renewable energy.
How Much Can You Save With Solar Panels?
The average US household can save $84 per month, or $1,008 per year, by going solar. In some states, like California and Arizona, homeowners can save over $100 per month.
Solar panel savings are calculated by looking at the difference between your current utility bill and what your bill would be without solar. This calculation is based on US average electricity rates and how much solar energy your system produces annually. Solar panels typically last 20-25 years, so these savings are realized over a long period.
Solar Power Systems are Long-Term Investments
One of the best ways to decide if you want solar panels is to learn first why is solar so expensive. They are expensive because of the materials they are made of and the manufacturing process.
They are also a relatively new technology, so the cost of research and development is high. However, solar panel costs are getting cheaper as technology improves and more companies enter the market.
Some of these benefits include utility cost savings, environmental friendliness, and increased property value. Contact a solar installation company to get started if you want to install solar panels for your home or business.
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