What Should Be My Budget for Installation of a Solar System?
Switching to solar power has become a no-brainer today, especially with the rising costs and unreliability of traditional power sources. Now is the best time to switch as we strive to rectify the mess we have done to our environment with the number of carbon emissions exposed. With Florida ranking 3rd nationally for the most carbon emissions, it is only fair to make the switch and enjoy the amazing incentives on offer for each installation.
However, installing a solar system is a sustainability initiative and an investment that requires maximum deliberation and planning to achieve. Getting enough backing from a reputable solar company like SEM Power will help offset a bigger percentage of your solar installation costs.
This feature will provide you with all the actionable information needed to determine your solar system installation budget.
Parts of a Solar System
To generate your power, you will need a system that comprises different components that work collectively to generate power. These include;
Solar Panel
When you ask anyone about solar power, they will mention the solar panel as this is the most known of all the components of a solar system. This part is installed on the roof to absorb sun rays that are converted into electric power. These costs depend on their sizes.
Inverter
This is a fundamental part of any solar system as it is responsible for converting the DC power collected by the panels to the 240 V AC power that powers your home. It comes in 2 main variations, the Spring Inverter that converts power from all panels and the Micro Inverter that converts power from individual panels.
Batteries
This optional component stores the generated power for use when the system is not generating power, especially at night. The cost of having a battery is usually high and mostly unnecessary, but this is up to you to decide.
Racking
Racking is the mount that holds your solar panel on the roof of your property. This is usually decided by your solar installer and should not be a bother to you.
Factors Affecting Solar System Installation Cost
Before buying and installing a solar system, you should consider several factors that affect how much it will cost you. These include;
The Size of the System
Solar systems come in different sizes depending on the amount of power each can generate. Bigger solar systems with numerous solar panels generate more power compared to smaller systems with fewer solar panels.
To determine the cost of the full system, calculations are made based on each Watt rated for the system. This means that for a system rated 5kW and charged at $2.82; the average cost will be $14,111 before the federal solar tax credit.
The cost of the system will entirely depend on your needs making it easy to fit your specific budget.
The Type of Equipment
Like any other product, different companies make solar systems, and these brands have specifications that are non-identical to others. These differences can be in terms of the warranty, visual appearance, and efficiency in their power generation, leading to contrasting costs.
Installation Labor
This is one of the key things to consider before installing your solar system. Solar installers charge different prices depending on their reputation and their warranties. Choosing a solar installer with the best track record and amazing warranty will cost you more than going with a lesser comparison.
Your Location
Depending on where you live, you will incur different costs for purchasing, permits, and installing the solar system, for instance, purchasing a solar panel in Florida will cost you $2.46/W while costing you $3.43 in Washington D.C. Location also affects how much you pay for your solar system permits due to different governing bodies in individual states.
Solar System Rebates and Incentives
The government is encouraging individuals and businesses to adopt solar systems by giving rebates and incentives to help in the process. These will vary depending on the state you live in, and the period you are installing the system.
Companies can qualify for capital purchase which allows them to enjoy all government incentives, leading to nearly a 60% reduction in cost.
Florida has a 26% federal investment tax credit for 2021 that runs to December 31st. The state’s Property Tax Abatement for Renewable Energy Property incentive also guarantees homeowners no tax increase but rather a 4% home value increase.
A new solar installation will exempt you from 100% of the sales tax, instantly saving around 6% of the total purchase cost.
With all the benefits that come with installing a solar system and all the incentives from both the state and Federal government, it is a good investment in going green for your home and business needs.
