In the past, those who wanted to install solar energy systems had to pay thousands for all of the equipment and installation costs. Thanks to companies like SolarCity, who specialize in providing solar with financing options, as well as tax incentives, purchasing a system has become a lot more affordable.
However, just because something is more affordable doesn’t mean it’s right for everyone. Before you commit to spending thousands on a solar energy system, it’s important to consider all of the costs associated with it, including ownership costs, maintenance, and operating costs.
Ownership Costs
Those who purchase solar energy systems pay a premium for equipment and installation, but they also have to pay for the energy they use through their monthly electrical bills. The cost of energy paid for a system depends on several factors, including the size of the system and the location of the system.
The installation cost of a solar energy system is relatively high, and it can range from $15,000 to $30,000. After you’ve paid for the installation, you will then need to consider the cost of the equipment. You will need to pay about $3,000 for solar collectors (photovoltaic modules), about $10,000 for solar trackers or receivers, and about $20,000 for a solar power system. Those who want to maximize the output of their systems will need to invest in large solar panels, which can range from $15,000 to $30,000 each.
Depending on your financial situation, you may want to consider different financing options for your solar energy system. For example, loan officers at SolarCity generally approve energy systems loans for customers who make between $10,000 and $30,000. This is a sign that you can comfortably afford a system and that you’re qualified for loans.
Maintenance Costs
Every one of the items mentioned above will need to be maintained and repaired as needed. Depending on the size of your system and how often you use it, this will be a relatively high cost. Fortunately, you can avoid this cost by taking good care of your solar energy system and making sure everything is working well. You will also need to check the panels at least once every month to ensure they are collecting solar energy and to make sure there are no issues such as dirt or damage that could decrease their efficiency.
The annual cost of maintaining a system depends on several factors, including how big the system is and how often you use it. For example, if you use your system a couple of times a week, the cost of electricity you would otherwise pay each month would more than cover the cost of maintenance.
Operating Costs
Your solar energy system will have several parts that will need to be operated and managed by you, the owner. These parts include the solar panels, the batteries, and the monitoring equipment. There are automated controls for some of these parts that can be programmed by anyone with basic technical knowledge, but you will still need to monitor and maintain them regularly to ensure everything continues to operate correctly.
The operating costs of a solar energy system depend on several factors, including the size of the system and how often you use it. For example, if you use your system a couple of times a week, the cost of electricity you would otherwise pay each month would more than cover the cost of operating the system.
When you’re considering the cost of a solar energy system, it’s important to look at all of the costs associated with it. While the initial investment is high, you will soon realize that the cost of energy you save (assuming you’ve done your homework and sized the system correctly) is more than worth it.