Going solar usually requires a large initial outlay. Even though the initial outlay would be more than offset by years of energy bill savings, some homeowners may feel intimidated and decide not to invest.
Why are solar panels so expensive?
Solar panels are expensive due to the way they are made and installed. Modules are made from a variety of materials, silicon being one of them. Although it is a frequently used chemical, obtaining silicon in its purest form requires precise technology, which increases the cost of manufacturing solar panels.
In addition, batteries and inverters are required for the solar panels. Lithium, a rare mineral used in these two components, increases the cost of manufacturing solar panels overall.
The price of solar panels is even more justified when you consider the glass, copper, metal and man-made components needed to produce them.
How to save by going solar
Here are four strategies to reduce your expenses.
- Reduce installation costs with DIY
In reality, the high cost of a solar home system is largely explained by the cost of installation. When certain third-party organizations perform system inspections and obtain the necessary permits on behalf of the owners, this can lead to somewhat high installation prices.
- Check service and warranty contracts
By using service contracts and warranties, you can reduce the total cost of your solar panels. Although expensive, high quality solar panels and inverters can lower your costs over time. If there is a problem with your system down the road, solar panels that have warranties will cover your costs.
- Use the federal ITC
A federal investment tax credit, or ITC, of 26% is now offered by the federal government. This allows you to significantly reduce your overall cost. As this incentive will drop to 22% in 2023 and then expire in 2024, it is imperative that you take advantage of it now.
- Take advantage of state discounts
The tax credits listed below are available to California residents:
- Single Family Solar Homes (DAC – SASH)
- Self-generation incentive program (SGIP)
- Capital Resilience Incentives
- Exclusion of property tax on solar energy
- Net energy metering
Even area-based and utility-based incentives are options you might want to think about. Be sure to research these benefits to find out which one is right for you.
Build it yourself, build it for less
At DIY Solar Power, we specialize in offering premium products and the support needed to build and install your home solar system at the most competitive price. Wipe out unnecessary setup and commission costs and get a much faster ROI with DIY. Each of our products has a 25-year manufacturer’s warranty, which will cover performance, product and parts and DIY solar energy experts can guide you to information on tax credits and rebates.
Ready to go solar?
To start your home solar project, Build your system now and review your quick quote. For more industry updates, be sure to follow DIY Solar Power on Facebook, Twitterand instagram.
picture by Kostiantyn Li on Unsplash