Required Solar Panels Bring Cost Reductions

The California Energy Commission has approved a requirement that all new homes and low-rise apartments built from 2020 onwards must include solar panels with construction. Due to the expected system cost reductions by installing it at the time of creation, additional savings are expected from a large number of installations across California. A summary of some of the causes for this decrease in expenses is discussed below.

Summary Of Solar Cost Reductions

1. A 20% reduction in the price of photovoltaic panels is possible when the transportation volume is doubled. The new command will certainly raise the demand for solar panels to the tune of 1,485,000.

2. Efficiencies of additional features are built into a new house. The prices of the residential retrofit solar power industry are too large and unable to compete with certain efficiencies.

¤ An 80% ($0.81 per watt) decreases in net profits, overhead expenditures, and sales and marketing are demanded.

¤ An 83.5% ($0.08 per watt) decreases in permitting, inspecting, and interconnection prices are expected for using the required, existing dwelling paperwork means, in coordination with an interconnection application.

¤ A 57% ($0.19 per watt) reduction in installation labor expenses is expected by developing at the time of construction.

¤ A 79.3% ($0.34 per watt) decrease in supply chain expenses is expected due to efficiencies in the supply chain. General home builders across the nation pay a standard 15% markup for shipping and storage as opposed to local installers, which purchase from local distributors. A local installer buys the equipment from local distributors. This compels them to pay several different markups as the equipment flows through the chain.

¤ A 75% ($0.18 per watt) loss in electrical balance of system charges is expected by building at the time of construction. There is no requirement to plan for new electrical panels, extra charges for cable conduit, or inspecting and correcting for code infractions. The only expenses are the materials required.

¤ A 51.8% ($0.06 per watt) decrease in the structural balance of system expenses or racking is expected due to efficiencies in acquiring and installation.

¤ A 31.6% ($0.06 per watt) decreases in inverter expenses is expected to standardization of inverters.

¤ A 61.3% ($1.78 per watt) decreases in the total system cost of a residential roof solar system is expected due to all of the overhead.

Further About Incentives For Solar

In addition, to the above, there are many incentives available. The federal tax incentive is anticipated to expire in 2022, and the state of California does not give any incentives for solar systems.

The point to keep in mind with domestic roof solar systems is that electricity is used where it is generated. There is no specialized power distribution system involved such as the transmission and diffusion grid. This new California condition will finally be able to make use of substantial economies of scale at the point of usage.

If you believe the above is not achievable in terms of current photovoltaic costs, I invite you to look at the table below. What is striking from this table are the actual costs per watt and the cost trend of the same. This site, for instance, shows solar panel system prices in Europe within the last month, and the price trend since January. It shows four diverse main types of the solar photovoltaic solar panel system.

While there is no “one size fits all” answer to the question of how much do solar panels price, most homeowners find that installing solar panels is a cost-effective alternative. The soundest way to find out if it is right for you is to get an estimate, we at HahaSmart can help you get those answers immediately with the price checker tool. How much solar power you need and how much you can save on your energy bills each month.