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Home solar panel installation solar is dropping. Most solar panels last for 50 years have a 25 year warranty and start generating a return on investment after 8. The price of solar has dropped by an incredible amount. For many the cost alone makes the notion of completely powering homes through solar panels difficult. Though the basic underlying technology is the same a variety of factors have contributed to a hundredfold decline in costs.
The average solar panel payback period is 7 to 12 years and solar energy saves 600 to 2 000 per year on electricity costs. The average cost to install solar panels is from 10 626 to 26 460 after tax credit for a 6kw to 12kw system to power an entire house. The cost has generally been following swanson s law which states that the price of solar drops by 20 for every doubling of shipped product. Not only are the prices of panels dropping so are the costs associated with installation such as permitting and inspection also known as soft costs.
Photos show a solar installation from 1988 left and a present day version. Though installation costs are dropping an average installation will likely run you upwards of 10 000 even after a 30 federal tax credit. Today it s around 0 13 per watt or about 600 times less. Now researchers have identified the relative importance of these different factors.
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