Solar Panels – Cutting the Cost

Solar panels and the free electricity they produce are highly desirable to many people. However, the initial cost of installing the panels has been an insurmountable barrier for most people. Despite technical advances in the solar energy field, manufacturers of solar panels still do not market a product that the average person finds affordable.

Some companies, both installers and panel producers, have grown tired of waiting for solar panel prices to drop. They have begun to try different ways of making the purchase of photovoltaic panels affordable.

Installation 30 to 50 percent of Total Cost

Although newspapers and television often talk about the incremental energy improvements for those who install solar panels, that initial installation will account for 30 to 50 percent of the total cost to the homeowner. In dollars, it may be anywhere from $20,000 to $35,000 in the U.S.

Cutting Installation Costs

New products and services are being used to lower the solar panel cost. Since half of the cost of solar energy is in the installation of the panels, this move should produce an appreciable reduction in overall costs.

* Andalay: This new solar panel is more attractive than previous ones, and can be installed more quickly. It uses seventy percent fewer parts than other solar panels use. It should greatly reduce costs.

* Sharp Solar: This manufacturer has come out with a solar panel and mounting system designed to streamline your panel installation. This, too, would produce cost reduction.

* Pre-installation: Some solar panel manufacturers are working with building contractors to have rooftop panels pre-installed on new homes. Having the work done while builders are installing the roof cuts labor costs. It also adds the solar panel cost to a mortgage – a big plus for the home owner.

* Leased Panels: Another new option is for companies to own the solar panels installed on private house roofs. The homeowner avoids the initial installation costs, and pays, instead, a fixed rate for electricity produced by the solar panels.

* Group Purchases: When a number of homeowners group together to purchase solar panels, their buying power is greater. Discounts are often available to the group that would not be given to individual buyers. In addition, installers can “mass-install” solar panels, cutting labor time and costs.

Solutions Yet Needed

Those who watch the solar panel industry continue to tell us that solar panels are not likely to be used widely until manufacturers improve the technology and provide more financial options for installation.