The decision of whether or not you should install solar at home depends on many factors. The biggest of all those factors is the cost. There are many rumors about the solar panel installation cost that pull people back from taking a step toward the use of solar power.
Are you one of those people who want to install a rooftop solar system but cost myths hold you back? If yes, you’ve hit a jackpot. This guide is for all you curious minds looking to explore more than just the benefits of solar.
Dive in and understand the ins and outs of solar panel installation costs like never before.
4 factors that affect the solar panel installation cost
You must have heard from your neighbors and friends or on TV and radio that installing a solar system at home results in zero electricity bills. You might have laughed it off too. But they weren’t making it up – it’s true.
Installing a solar system of the right capacity indeed reduces the electricity bill by up to 90%; many times, the bill is also nil.
That said, let’s now give you a walk through the gardens of the top 4 factors that affect solar installation cost.
1. The module you pick
Solar modules aka solar panels is the magic minions in a solar system. Why do we say so? Well, that’s because it’s these panels that trap sunlight and make electricity out of it.
There are two kinds of solar panels and the solar panel installation cost varies depending on which of the two types you choose. Let’s elaborate a little.
|Polycrystalline solar panels||Monocrystalline solar panels|
|Their efficiency ranges between 16-17%||Their efficiency ranges between 19-20%|
|They’re made of multiple silicon crystals||They’re made of one pure silicon crystal|
|They’re cheaper i.e. more affordable||They’re costlier than poly panels|
- A polycrystalline panel is priced at approximately ₹25.5 per watt
- A monocrystalline panel is priced at approximately ₹30 per watt
There’s yet another type: bifacial solar panel. However, it’s not that widely used for residential installations. Its efficiency is up to 20% and its price ranges between ₹33-36 per watt.
So, the type of panel you choose will affect the solar panel installation cost largely. Here are a couple of pro tips that might help you choose the better option:
- If rooftop space is not an issue and there aren’t shadow issues either and your place receives enough sunshine, you can opt for poly panels.
- If your roof has shadow issues and there’s not enough space (1 KW requires 100 square feet of shadow-free area), then mono panels are better. They require less space and produce more energy.
2. The inverter you choose
An inverter can be called the guardian of a solar system. Without one, the electricity produced by the panels is useless.
Why do we say so? Well, that’s because electricity from the panel is in the form of direct current. And home appliances run on alternating current only.
And as you might have guessed, it’s the guardian of the solar system that makes this conversion (DC to AC) possible.
The two leading options include string inverters and micro-inverters. The latter is the more efficient one; hence, more expensive than the former.
3. The vendor you choose
The solar panel installation cost also depends upon the vendor you choose. If you choose vendors that aren’t trusted, the chances that you’ll be robbed of money and provided with panels that won’t last are huge.
So, be very mindful of who you choose. Most-trusted companies will always offer the following services:
- Quick loan approvals
- Easy EMI options
- After-sales maintenance services
- Free rooftop inspection
- Prefabricated mounting structures
Did you know that even the height of the mounting structures you choose will affect the cost of installation in the end? Usually, it’s 6-8 feet mounting structures that people prefer.
4. The size of the solar system you require
Let’s now address the elephant in the room – what’s the actual solar panel installation cost?
To begin with, we’d like to make it clear that the price is not fixed. You already know that there are many factors (listed above) involved.
Hence, there’s a price range for solar systems of different capacities:
- 1 KW: ₹45,000 to ₹70,000
- 2 KW: ₹90,000 to ₹1,40,000
- 3 KW: ₹1,35,000 to ₹2,10,000
- 4 KW: ₹1,80,000 to ₹2,80,000
- 5 KW: ₹2,25,000 to ₹3,50,000
- 10 KW: ₹4,50,000 to ₹7,00,000
Now that you know the solar panel installation cost, you might get the impression that it’s too much. This is why busting certain costing myths is very important so that you have complete information.
Busting myths about solar pricing
To begin with, the government of India offers a subsidy to homeowners and housing societies. The scheme is known as DBT (direct benefit transfer). Whatever the solar panel installation cost, you can get a subsidy (under certain conditions). Here’s the table.
|Plant Capacity||Applicable Subsidy|
|Up to 3kW||₹14588/- per kW|
|Above 3kW and up to 10kW||₹14588/- per kW for the first 3kW and thereafter, ₹7294/- per kW|
|Above 10kW||₹94822/- fixed|
Other than this, we also have a savings guide that’ll further help you understand why it’s worth installing a solar system.
Suppose, you currently consume 800 units of electricity a month and the tariff per unit in your state is ₹10. So, your electricity bill would be ₹8,000 per month.
But after you install a 7 KW solar system, you will get approximately 840 units of electricity every month from solar only (1 KW produces roughly 4 units per day). This means your bill will be nil or will at least reduce by up to 90%.
Considering these savings, the initial installation cost will take no more than 3-4 years to break even. And since tier-1 modules last for a minimum of 25 years, you will be getting solar electricity for decades.
Hence, installing solar is worth every penny spent upfront.
If you’re interested in understanding the factors that affect solar panel installation costs and want to explore options for solar in Boulder, CO, you can find valuable insights and solutions at Blue Raven Solar.
We hope you now know everything about solar panel installation cost and why this cost varies. Beside, the government is being very proactive about the mass adoption of solar. Sooner or later everybody will switch to solar. So, why not now?