Going solar often requires a significant upfront investment. Although this initial cost will be offset by years of saving on energy bills, it can be intimidating to some homeowners and prevent them from taking the leap. But why are solar panels so expensive to begin with and how can you reduce that upfront cost? This post has the answers you are looking for.
Why Are Solar Panels So Expensive?
The high cost of solar panels is based on their manufacturing and installation. There are different materials used to manufacture solar panels, one being silicon. Although it’s a widely available substance, refining it to its purest form requires precision technology, adding cost to solar panel manufacture.
Besides that, solar panels require inverters and batteries. These two components use lithium, a rare mineral that adds costs to the total solar panel manufacture price.
When you add copper, metal, human-made components, and glass needed to manufacture solar panels, this justifies why solar panels are expensive.
With installation, it turns out that this accounts for more than half the cost of home solar systems. Installation fees are relatively high due to the system’s inspection expenses and obtaining relevant permits.
4 Ways To Save on Solar Panels
Now that you understand why solar panels are so expensive, here are four ways to cut down your cost.
Avoid Overpaying for Installation
In most cases, solar panel quotes are based on turnkey installations. You should understand even though the cost of equipment remains the same, the installation cost differs.
Check on the Warranty and Service Contracts
You can save your cumulative solar panel cost through warranties and service contracts. Quality solar panels, batteries, and inverters are expensive but can cut down your cost in the long run. Look for solar panels with warranties to cover your expense if there’s an issue with your system.
Take Advantage of Federal ITC Credit
The federal government is currently offering a federal investment tax credit or ITC of 26%. This means you can cut down a significant amount from your total cost. It’s crucial to take advantage of this incentive now since it will be gone by 2024.
Take Advantage of State Rebates
Whether staying in California or Nevada, you can take advantage of their solar rebates to reduce your solar expenses. In California, you can take advantage of the following tax credits:
- Single-family solar homes (DAC – SASH)
- Self Generation Incentive Program (SGIP)
- Equity Resilience Incentives
- Solar Energy Property Tax Exclusion
- Net Energy Metering
There are even utility-based and area-based incentives that you can consider. Ensure that you learn about these incentives to determine which suits you best.
If you’re in Nevada, you can take advantage of the following solar rebates:
- Net energy metering
- Nevada energy storage incentives
Again, it’s recommended that you learn about these options to ensure that you meet their requirements and use the proper means to apply.
Save on Solar Panel Costs with Solar Optimum
You need to partner with a reliable solar company to cut down your solar panel installation cost. At Solar Optimum, we offer flexible solar panel financing options to help you install your solar panels without straining your budget. Our partnership with top financial providers will guarantee the best financial option suited for your needs. Schedule an appointment with us today to learn more about this.