Solar Panels Cost

Recent years have seen increasing focus on green energy like solar energy due to breakthrough in technology, greater affordability and government incentives which make them profitable. These factors have led to rising preference for solar technology using solar panels. Solar Panels are packaged assembly of photovoltaic cells which can be used for generation of electricity in residential & commercial applications.

Cost of Solar Panels

To outline the cost of solar panel for home, one must first know the amount of electricity used in the house by looking at monthly KWH consumed. The averaged daily electricity consumed may be found by multiplying KWH by 1000 and dividing by 30. Now, this number has to be divided by daily average no. of hours of sun. This gives the amount of electricity that can be generated per hour of daylight.

The average installation cost ranges from $7 to $9 per watt. Hence, the cost of solar panels can be calculated from the product of average hourly watt hours with installation cost. Each solar panel costs around $200-$900 or £150- £700. The average home requirement approximates to 2 kW systems. Now, to get 2kW, either 5 panels x 400 W may be used or 8 panels x 250 W may be used. Thus, the cost of 2kW may be around £11500 to £12000.

Additional Costs:

-Maintenance: Though solar panels are designed to resist rough climate like frost, heavy snow, etc; still solar panels require maintenance to remain clean and for peak performance.

-Planning Permission: It is often required for installation in national heritage sites & for properties within conservation areas.

-Insurance: One may include solar system in home insurance policy.

Though initial installation cost of solar panels may be high, yet it can be offset against savings made from government’s feed in tariff scheme i.e. guaranteed for 25 years. The payback period usually ranges from 8 to 10 years, after which a return of 9% along with savings in electricity bill makes the expenditure on solar panels more of an investment rather than a cost.

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