What Factors Determine the Cost of Going Solar

If you’re thinking of going solar, it’s a great choice. But you must ensure this choice is the best for your home and your budget.

We can help you learn more about going solar by sharing information about factors affecting solar panels cost. Consider the tips in this post when deciding if going solar is right for you before contacting a solar company.

Read on to learn more about the cost of going solar. 

The Size of the System

The larger the system, the more panels and equipment must be purchased and installed. Additionally, larger systems require more wiring, larger inverters, and racking.

Generally, the greater the system’s capacity, the more it will cost. More extensive systems also require more roof space. It may necessitate costly structural changes, such as reinforcing the roof.

Solar rebates and credits are often available to solar panel owners to offset these costs. These can help to reduce the upfront and installation costs and increase the ROI.

Types of Solar Panel

Several key factors determine the cost of going solar. The most important of these is the type of solar panels being used. Here are the four primary types of solar panels:


Monocrystalline panels are the most space-efficient and durable of the three solar panel varieties, thanks to pure silicon. These are also called single-crystal panels created from a single wafer of pure silicon divided into multiple wafers. Their dark black hue easily recognizes them because they are constructed of pure silicon.

This has a price, too, as a lot of silicon, sometimes over 50%, is squandered to create just one monocrystalline cell. The price tag, as a result, is high.


These originate from many silicon crystals, as suggested by their name, rather than just one. A square mold is filled with melted silicon shards. The minimal wastage makes polycrystalline cells much more economical and gives them their distinctive square shape.

Since they are made with less pure silicon and have a different architecture than monocrystalline panels, they are likewise less effective at converting energy into usable space. They are also less effective in hot situations because of their decreased heat tolerance.


A development above the conventional monocrystalline cell is the PERC solar panel. The rear surface of the cell is added with a passivation layer in this relatively new technology, increasing efficiency.

PERC panels are perfect for locations with limited space because they increase solar energy collection while having a reduced physical footprint. Due to the additional materials required, they are only marginally more expensive to create than conventional panels. However, they may still be made using the same machinery and have a lower average cost per watt because of their efficiency.


Minimal layers that are thin enough to be flexible define thin-film panels. They are lighter and more straightforward to install since no frame backing is needed for each meeting.

Thin-film panels can be made in different sizes to meet different needs, while crystalline silicon panels only come in normal sizes of 60, 72, and 96 cells. They are, however, not as good as solar cells made of silicon.

The Capacity of the Inverter

The inverter’s job is to convert the power generated by the solar panels into usable energy for the home. The inverter’s capacity is one of the main deciding factors in the cost of going solar. If a larger capacity inverter is required, then the cost of the solar installation is likely to be more expensive.

The size of the inverter will depend on the amount of solar energy the customer plans. This is to produce and consume throughout the day.

Generally speaking, the more energy that needs to be converted, the larger the inverter. The more expensive the installation is likely to be.

Availability of Incentives and Rebates

When incentives and rebates are offered, the upfront installation costs may be reduced or eliminated. This helps to reduce the overall cost of going solar. In addition, some states and local jurisdictions may offer additional tax credits for those who decide to use solar energy.

While incentives and rebates vary depending on the state and sometimes even the locality. They can go a long way in reducing the cost of going solar.

This is why it is essential to research incentives and rebates. It may be available before committing to solar.

Installation and Maintenance

Installation costs vary depending on the size of the home and the size of the solar panel system needed. More extensive plans for bigger homes will naturally cost more.

Solar inverter installation and maintenance can run up the cost of going solar. Maintenance costs include regular check-ups. It is to make sure the system is running correctly and if any parts need to be replaced.

Quality of solar panel installation and maintenance is essential. It is to maximize the solar panel system’s efficiency and durability. Additionally, additional installation and labor costs might be needed if the home does not have an ideal roof location for the solar panel system.

Investment in quality installations and regular maintenance is essential. It decreases the overall cost of going solar in the long run. If you want to invest in solar panels, follow this link.

Location of the Installation

Location is a crucial factor in determining the cost of going solar. Generally, solar installations in areas with more direct sunlight (southern climates) will experience more significant cost savings.

Installation on the roof of a home, rather than on the ground, typically costs more due to the difficulty of installation. In addition, costs also vary depending on the rebates, subsidies, and incentives available in the area.

Outreach to local vendors and municipal and state governments is critical. This is to identify the best options for each location. Ultimately, the cost of going solar depends mainly on the installation site.

Type of Energy Provider

The cost of going solar depends on several factors. One factor that directly impacts the price is the type of energy provider. For example, if you choose to go with a third-party solar energy provider, you may get a lower rate on your energy bill than if you go with a traditional utility company.

Third-party solar energy providers may also provide more customization options, lowering the cost of going solar. In addition, the solar system’s size, the selected panel type, and the system’s installation can also influence final prices.

Finally, local tax incentives and rebates can also reduce solar costs. These factors must be considered to determine the cost of going solar.

The Output of the System

The system’s output is one of the most significant factors determining the cost of going solar. Generally speaking, the higher the system output, the higher the installation cost. Larger systems and more solar panels will be needed to generate the same power.

The efficiency of the solar panels and the number of hours per day the system will be generating power also affect the total cost. Additionally, land use costs and the availability of incentives will all impact the overall cost of going solar.

Geographic Location

Geographic location is a significant factor in determining the cost of going solar. Different areas and states have varying amounts of sunlight and expenses associated with installation and maintenance. Furthermore, other panels may be more suitable depending on the climate, with more expensive panels being more efficient in colder climates.

Therefore, it is essential to research and compare costs between local providers to get the best deal. Ultimately, going solar will depend on the solar resources available in a given region, installation cost, chosen panels’ efficiency, and incentives’ availability.

Equipment Used

The equipment used when going solar is a critical factor in the cost. The type of solar cells, size, and grade are essential to the overall cost. In most cases, monocrystalline silicon cell solar panels are the most expensive due to their efficiency, but if the panel size is large, that can also increase the cost.

Inverters come in different power ratings and these influence cost. The number of panels and their installation also affect the price. Generally, the more commissions and installation points on the roof, the more expensive it is to install solar panels. 

Utility Signals and Rates

Utility signals are generated by the local utility company, which provides pricing information based on the region’s energy needs. On the other hand, utility rates are determined by the local government, and they can vary greatly depending on the area.

These factors can significantly impact the cost of solar energy, as electricity costs vary widely based on the utility signals and rates in a given region. For example, in places with higher utility signals, solar panel systems may cost more due to the need to produce more electricity to meet the increased demand.

On the other hand, in regions with lower utility rates, solar panels may tend to be more cost-effective. Ultimately, understanding the utility signals and rates in a given area is essential for accurately calculating the cost of going solar.

Understanding the Cost of Going Solar

The cost of going solar largely depends on factors such as the size of the system, the type of installation, and your geographic location. Though initial investment is high, solar energy can help you save money on your electricity bills in the long run. To start your solar journey, contact an experienced installer to learn more.

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