How Much Does Solar Energy Cost?

“How much does solar energy cost” is a difficultheating system is $2,000-$4,000.
question to answer but this article will hopefully givePhotovoltaic System: The price of a solar panel
you some good pointers.depends on its wattage. A 1 kW system costs
The cost of using solar energy is next to nothing afterbetween US $8,000 and $10,000. For an average
the initial investment of setting up your solar powersized family, 1.5 – 3 kW solar panels are required,
system for your home. The amount of money thatwhich cost between US $13,000 and US $27,000,
you will pay for the equipment is determined by awithout rebates.
number of variables.You can save a lot of money on solar panels with the
Factors that determine the cost of solar energyhelp of government rebates and tax credits. For
include your electricity requirements, the amount ofexample, say you live in California and have purchased
sunshine that is available to charge the solar panels,a 2.5 kW system for $22,500.
size of the place where the panels will be used andThe government rebate on this system will be $7000
incentives given by the government to people using(2500 watt x $2.80 per watt rebate = $7,000). Also
‘green’ technology.subtract the tax credit amount of $ 1,163 from the sale
And governments and states are recognizing theprice (7.5% of system cost after rebate. $22,500 –
benefit to society at large to encourage the use of$7,000 x 7.5% = $1,163).
renewable energy sources. Clearly this would alsoIt should be kept in mind that the example given above
have the effect of reducing the obligation onis an estimate and other factors will play a part in
government to provide power which is an increasinglydetermining the final cost price of a solar energy
onerous task because of the depletion in fossil fuelsystem.
supplies.You can reduce these costs enormously though by
Taking into account the above mentioned variables,building your own solar panels which can be built at a
here is a rough estimate of the cost of solar energy.fraction of the cost of buying ready made units.
Water Heating System: The cost of a solar water