Capturing the sun’s rays and generating electricity from it is done by solar panels. They are also known as solar photovoltaic. This generated electricity can run common household appliances and lighten the house.
Now, the cost required for solar panel to be installed at home is different in every region.
Various factors affecting the installation cost of solar panel
Roof Impact of installation cost of solar panel
The different type of roof makes a huge impact on the installation cost of solar panel. The installation cost of solar panel is higher on Spanish tiles. This is because the tiles are brittle. So they require extra care to be taken. This increases the installation cost of solar panel by 25%.
Cover the installation cost of solar panel
As you get solar panel installed on the roof, the owner should contact the house owner’s insurance company of the solar panel to get 10% per month. This helps to get protected from damage and the installation cost is covered.
Company Utility Rate
In every region, there are different systems called as “tiers” to calculate the energy cost which is being consumed. Higher the energy usage, greater is the rate. In these schemes if the person pays more as his energy demands is increased. In the San Francisco Bay Area, the approximately monthly PG&E electric bill is $90, but when the monthly bill exceeds the amount around $237 the owner enters in “Tier 5″ where he has to pay higher rates. However, when the consumer starts using solar with PG&E as their utility, the owner gets expelled from the top tiers for the cost formula. Therefore, the more spending on electricity currently, the higher is the ROI that Return On Investment will be enjoyed on an installed solar system.
Feed in Tariff rates
The feed in tariff rates changes from state to state. They depend on RPI that is Return Investment Price. The feed in tariff rates comprises the amount which is earned by the owner for each kWh generated by the system. Also if the user exports the electricity makes him eligible to receive feed in tariff amount. Hence, this can covers the installation cost and reduces the amount eventually.
Various other factors affecting the installation cost of solar panel
1. System: The system itself accounts of around $9000.
2. Solar Panel: The cost of the solar panel is around $6500.
3. Balance of System: The balance of system includes all the components except solar panel. It cost around 2500.
4. Installation: The installation cost of solar panel is around $7500.
5. Labor: The laborers which works for the installation of solar panel accounts around $3000.
6. Permit, Inspection Fees: This accounts an amount around $4500.
7. Operational Cost: The overall operational cost which is required is approximately $3000.
Hence, the total amount required to install solar panel is around $19500.