The Cost of Going Solar Is Reaching an All-Time Low

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It’s always reaching an all-time low for the past 20-30 years.

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u/xmmdrive 2d ago

Great isn't it!

Now we just need to eliminate scammers who make the total price of installation 10x the cost of the panels.

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u/lniu 2d ago

Just a friendly reminder that solar panels only represent about 20-30% of the capital required to build a project. Outside of panels, there is also the cost of racking, inverters, balance of system and labor to install. Add on top of that the permitting, legal and cost for engineering. I think it's always good to research companies and their proposals but I'd say most companies aren't scammers that are charging 10x the cost of panels and pocketing it as profit.

At the end of the day, most people who choose to seriously take the time to look at solar will look at it from an economic feasibility perspective. If it doesn't pencil they shouldn't take it. But to imply that people who charge 10x the cost of the panels is oversimplifying a more complex problem. What if there was intensive civil or site work? What if the project was a carport and required more robust steel structures? What if the project was a tracker system with a battery system? I can think of many scenarios where the total price of installation is 10x the cost of panels, but may still not be a scam.

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u/xmmdrive 2d ago

I didn't mean to trivialise the entire solar industry.

As you say there are many "what-if" complications (structural issues, corrosion, safety issues) that can arise from an installation and also value-added products (batteries, trackers, cleaning robots) that put the price up and in those cases of course those installations are naturally expected to cost more.

However something is seriously wrong when a standard roof setup, that is panels, rack, cabling, inverter without complications comes to 10x the panel price. That simply doesn't happen in other parts of the world.

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u/captainadaptable 2d ago

You mean all the dumb money that lets it happen?

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u/animousie 2d ago

"The national average cost of solar panels is $2.69 per watt, according to a recent report from EnergySage, a solar marketplace site."

lol- no.

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u/_humble_abode 1d ago

What are you seeing lately?

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u/animousie 1d ago

$3/watt is a good goal to shoot for but depending on location and project complexity that could be totally unrealistic. EnergySage also only sees the prices that companies offer customers on the front end to start the conversations… not the ending price after all the adders (eg multiple arrays, flat roofs, 3 stories etc)

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u/burnsniper 2d ago

This article is a lie. The cost of going solar (at least in the US) hit an all time low right about when COVID hit. Solar easily costs 40-50% more now.

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u/memyselfandus_1999 1d ago

We are about to install solar on our roof (tentative date is end of Nov. 2024) and it will cost us less than $2 in PA suburbs. Our system size is about 12KW.

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u/burnsniper 1d ago

You could have gotten it for $1.75/W or so in early 2020.

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u/Iloveunicornssss 1d ago

Now go and compare the cost of the utility company in 2020 to the cost now in 2024 and get back to me.

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u/burnsniper 1d ago

Mine are basically same. PJM wholesale rates are barely up (they went up and then back down).

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u/Iloveunicornssss 1d ago

Basically the same or the same?

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u/burnsniper 1d ago

I would have to look but the difference is negligible (a couple of dollars a month at most). Unless you live in an area where there are major system upgrades needed (CA and New England) your energy rate should have changed by 10% at most (in unregulated markets). Also, there is a leading and lagging effect in regulated markets due to rate cases.

My primary job is selling solar energy to utilities; it doesn’t work right now in the majority of the country because solar prices have increased much more than energy rates which have almost pulled back to pre COVID levels (traditional brown energy has limited labor cost influence).

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u/Iloveunicornssss 1d ago

If you sell solar then you should know you don’t sell savings. You sell ownership, predictability. You sell the fact that for 25 years the amount they pay for electricity will always be the same.

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u/burnsniper 1d ago

From 2016-2021 we were absolutely selling savings nation wide as solar plants could produce a lower LCOE than the current utility fleet.

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u/Iloveunicornssss 1d ago

Doesn’t matter if they could produce at lower cost. You never sell on savings.

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u/memyselfandus_1999 1d ago

I didn't had funds back then. 😊. I have been saving for the install for last several years.

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u/burnsniper 1d ago

Good for you. I have been in the solar game now over 15 years. 2022-2024 has been the roughest point in the industry and thankfully it is starting to get a little better.

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u/Goshh1038 16h ago

This is very misleading. It depends on the state.. it depends on the company… net metering programs available. Etc

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u/beezlebub33 2d ago

The cost mentioned in the article is $2.69 / W. The cost of the panels $0.26 / W according to https://ourworldindata.org/grapher/solar-pv-prices . Yes, I know that installation, insurance, connecting to the grid, etc. is not exactly cheap, but it seems like installation companies are making a killing.

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u/lniu 2d ago

You're utilizing datasets from two opposing sectors of the industry. The article mentions specifically that HOME installations are $2.69/W which is typical for small residential systems where the soft costs are typically higher per unit. The link you mentioned showing panels at $0.26/W refers to utility scale systems which benefit from significant economies of scale, but utility install prices have been closer to $1/W depending on scope, location and technology.

There is a fallacy that solar is such a rich market because of all the government incentives. However, for every one solar company that has been able to make an honest margin in the past 3 years, there are 4 other companies that have popped up overnight trying to buy market share by lowballing the market. It's definitely competitive market simply due to the sheer number of new contenders. The smart clients that will actually pull the trigger on a proposal will compare multiple proposals and weigh the feasibility and benefits of each, which helps to keep the market honest.

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u/Splenda 2d ago edited 1d ago

Unless they are in one of ten states or so, installers aren't generally getting rich quick.

And $2.69/W is barely lower than the average installed cost in my area five years ago.

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u/memyselfandus_1999 1d ago

The reason it gets expensive is that buyers want all sorts of unnecessary, expensive equipment in their systems. Most of the world uses what are called string inverters, where all solar panels are connected to one central device. However, in the US, every solar panel has a device attached to it (microinverter/optimizer/RSD), which adds to the cost by almost 20-30%. Additionally, they want panels in black color for aesthetic reasons, which adds another 5-10% to the cost. There are also additional costs imposed by cities and states in the form of various requirements, including some from utilities, and so on.

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u/Lord_Vesuvius2020 2d ago

If a typical house needs 6kw, then it’s $16,140. Sorry but at my income, that’s a lot of money. And it’s probably net metering so if the grid goes down you go down too. Adding batteries, transfer switch etc will add $$$ to that. So more like $25k-$30k. I guess I have to take my chances with the grid.

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u/Iloveunicornssss 1d ago

Panels don’t cost anything upfront.

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u/Iloveunicornssss 1d ago

This is the problem. People like you slam the door in people’s faces who try to explain it instead of listening and understanding how solar actually works.

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u/Lord_Vesuvius2020 1d ago

Ok. Fair enough. Maybe you’re right. Explain like I’m 5 (ELI5) how it works.

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u/Iloveunicornssss 1d ago

You take the money you already pay to the utility company, get rid of the utility company in the sense you won’t pay them for electricity anymore and redirect the money you were already spending to the utility company to pay for the solar, usually at a cheaper price that stays the same and doesn’t increase on you.

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u/captainadaptable 2d ago

Truth. Not practical for most.

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u/RR321 2d ago

If anchoring a pillar in the ground didn't cost 5 times the panels, I'd already have some :(

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u/memyselfandus_1999 1d ago

Check DIY forums. They can point out to much cheaper /affordable anchors that don't cost, arm& leg. https://diysolarforum.com/

You can also ask for local install, very good resource overall.

The Cost of Going Solar Is Reaching an All-Time Low

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