The history of Solar Energy dates back to 1954 when Daryl Chapin, Calvin Fuller, and Gerald Pearson developed the Silicon Photovoltaic Cell – the first solar cell that had the ability to convert the solar energy enough to power everyday electrical equipment. With time, the developments in technology have allowed us to harness the same energy to power our homes and even our commercial buildings more efficiently and effectively than before.
Cost of Solar Energy Today
Let’s be very precise! The cost of building a typical rooftop solar panel system typically ranges between $3,000 and $12,000. The price depends mainly on where you live, as well as the size of the solar panel system that you are trying to build – the bigger the system, the more costly it will be. Such rates factor in discounts from the Small Scale Technology Certificate (STC) incentive from the Federal Government, which offers a significant discount of up to several thousand dollars. That again depends on your location and the capacity of your solar PV device.
The average price you would expect to pay for solar installation is, as a very general rule, $1.40 per watt or $1,400/kW. It is also worth mentioning that with larger solar energy systems, the price per watt will decrease.
Factors That Affect the Cost of Solar Installation
There are many factors that affect the various aspects contributing to the price of a usual solar installation, particularly pertaining to installation costs:
- The Demand for Installations: The average cost of installation depends largely on the supply and demand. You may have to pay a higher price in areas where the installers have a lot of work to get through, or in other words, the pre-existing infrastructure is not up to the mark. Another factor that can be put in here is ‘the time of the year’. During the early parts of autumn and spring, solar energy installation requests are always less in number, thus, the cost gets cheaper at that time.
- Quality of Solar Panels: It is a big misconception among the customers that every single solar panel is the same. But in reality, it is not true. Some may have a superior crystalline structure that enables them to transform sunlight into usable electricity more efficiently. Similarly, the materials used to manufacture solar panels can also affect the solar panel cost. Now, some of you may think to buy cheaper solar panels to save some bucks. Powerful solar panels may be more costly but, for the long run, they will save you more money.
- Flat Roof: To get the most out of your solar energy system, it is important to align the solar panels optimally towards the sun. If yours is a flat roof, then you may need to shell out extra money for the mounts to mount and tilt the panels in the correct direction. Such mounts will cost you a $20-$80 for every panel you install.
- Condition of the Roof: Your total solar panel cost can also be affected by the condition of your roof. The more difficult it is for the installers to work on your roof, the more money they will charge you for the installation. Usually, old roofs are costlier to work on because of all the delicate work that is needed to complete the installation properly.
ROI and Savings
- Mostly, solar energy systems come with a warranty of 10 to 15 years, which is enough for your solar system to pay for itself. After that period, each kWh of electricity generated is pure profit!
- Although there is no doubt in the fact that a solar system doesn’t come cheap, it can still turn out to be a lucrative investment in the long run. In most situations, the savings it generates can eventually make your solar system pay for itself. How long this would take depends on a multitude of factors, including the use of household electricity, the size of the solar panel, the quality of your solar panels, and your local weather.
- Your ROI also depends on the fact that whether or not you receive a feed-in tariff (FiT). FiT is a small subsidy (about 6c-16c) that you receive for each kWh of electricity exported to the energy grid. If you live in a rural area or have been using solar since before 2013, you can still be eligible to benefit from premium tariffs of 20c or more.
Sun Max Solar is known to be one of Australia’s most trusted solar energy solution providers. We offer best-in-class solar systems from some of the most renowned solar manufacturers from around the globe. Click here if you want to know more about our services or to get a quote for your solar installation. Our dedicated support staff will get in touch with you soon!