Costs of Solar Power
Photovoltaic (PV) system costs vary, depending on the size of the system and type of components used. Sizing a grid tied PV system is a function of the amount of electricity you want the system to produce, the solar resource and exposure available, space available for the panels and budget. If you plan to add PV panels to your system over time, be sure to size the rest of your system (inverter and wire) to manage the additional panels.
A 2-kilowatt system, which could offset about 60 percent of the average Californian's electricity demand, may cost $16,000 to $22,000, or $8 to $11 per watt installed before any rebate or tax credit.
Estimate the size of your system.
To estimate the maximum size of your system, take your average annual electricity consumption, then divide that by 1,550. The number you come up with is roughly the size of the system (kW DC) that would supply your energy needs.
Good example of cost for a 2kW system
If you don't have your bills, call your energy supplier's customer service support.
Cost Effectiveness
Depending on your specific need and location, there are a number of factors that affect cost effectiveness, including:
- System Size
Because of economies of scale, large systems cost less per watt than small systems. - Installation Complexity
More complex installations, including mounting systems on racks, working around obstructions or on tile roofs can be more expensive. - System Production
Installing your system at the optimal orientation and tilt will maximize system production. The more energy your system produces overtime, the lower the cost per kilowatt hour. - Operation and Maintenance
Compared to other distributed energy technologies, operation and maintenance costs of PV systems are relatively low. Costs may include occasional cleaning of PV modules, regular visual inspections and possible repair or replacement of the inverter and/or components after a number of years. - Financial Incentives
There are a variety of incentives available to lower the costs of investments in PV systems.
