February 19, 2020
For those interested in going solar, the cost of solar panels is a big question ahead of any potential solar panel installation. Today, we’re going to cover a few of the key components which determine how much solar panels cost and what makes up the cost of a solar panel installation.
Solar Installation Labor Cost
The cost of solar panels across the country varies depending on local regulations. Certain regions, such as New York City, have higher labor costs and require additional engineering and permitting for any type of construction. Naturally, this makes solar energy construction more expensive compared to other areas of the state like Long Island or Westchester.
Massachusetts and Rhode Island have strict labor regulations as well. In MA and RI they require at least one licensed electrician for every two construction solar installers on-site. This increases costs for installations versus areas such as upstate New York or New Jersey.
Solar Equipment Cost
Solar tariffs have been put into place under both the Obama and Trump administrations to fight "dumping" of equipment from Asia—and specific countries such as China have increased the cost of solar cells and modules. The Trump tariffs have led to drastic increases in module prices. Module prices had fallen to an all-time low in 2016—$0.25/Watt DC for Bloomberg Tier 1 solar modules—but today the market price is $0.40/Watt DC in Q1 of 2020. The Bloomberg Tier 1 list allows buyers to level our solar modules and sorts manufacturers based on their financeability.
Solar Racking Cost
Roof-mounted solar panel equipment typically utilizes aluminum or fiberglass. Pricing for racking systems have stabilized at about $0.11/Watt DC - $0.15/Watt DC depending on the system size and roof type. Certain roofs that require penetrations may increase costs due to flashing requirements and existing warranties with commercial roofing manufacturers.
Solar Inverter Cost
The leading commercial inverter manufacturers are SMA, Chint and SunGrow. Residential and small commercial solar systems have been utilizing SolarEdge inverters and Enphase products. Commercial inverter products average at $0.08/Watt DC compared to residential inverters at an average of $0.45/Watt DC.
Other costs associated with solar panel installations include permitting, engineering, inspections, financing, processing incentive applications, processing interconnection paperwork, and any interconnection upgrade fees.
Despite all this talk about costs, solar panels remain an extremely cost-efficient way to generate renewable energy and save money on your utility bill. Contact YSG Solar today to learn more about going solar, and how it could work for you. We take care of the entire process from start to finish, so you can see savings on your electric bill as soon as possible. Send us an email, or call at 212.389.9215 to learn more.