Are you thinking about investing in solar panels? With costs increasing over time, you may wonder why and what factors contribute to their rising prices. Here, we explore contributing factors and whether it still makes sense to purchase solar panels as an investment.
Raw Materials
Silicon is the primary material used in these panels and has seen price increases due to supply chain disruptions. Higher demand for electronics devices thatrely on silicon has resulted in a higher price tag. Aluminum and copper used for frames and wiring have also seen price hikes recently.
Labor Costs
Installing solar panels requires skilled labor that is increasingly in short supply. As more qualified installers enter the workforce, wages have skyrocketed, resulting in increased installation costs for property owners who want to switch to solar power.
Tariffs
Imposing tariffs on Chinese solar panel imports has increased installation costs in 2018. In response, the United States imposed a 30% tariff on imports, resulting in greater installation expenses for residential installations. Now, more homeowners prefer locally made panels over imported ones. Consider that when you calculate the costs of buying panels from solar companies in Peoria.
Research and Development
Even with rising costs, solar panels remain worthwhile investments for many reasons. Given the ongoing research and development of the technology, solar panel efficiency has increased whileits long-term costs decreased significantly. That won’t stop any time soon. In addition, energy storage systems make it possible to store excess solar energy for later use, further increasing their value.
Tax Incentives
States and local governments offer tax incentives for installing solar panels, helping offset some initial costs. Upfront costs are one of the drawbacks of switching to solar power. With these tax perks, though, property owners can get massive cost savings. In addition, federal governments offer up to 26% tax credits for solar panel installations costs on residential properties or 26% on commercial ones.
Energy Savings
Solar panels can bring significant long-term energy savings. While initial costs may be higher, savings on your monthly energy bills quickly add up over time. Also, depending on your location and system size, excess power produced could even be sold back to utility providers for credit, offsetting even further the expenses incurred in installing your panels.
Although solar panel prices may seem daunting, investing in them remains a wise financial move. Between ongoing solar research and development efforts, tax incentives, and potential long-term energy savings potential – investing in solar panels can still make for a smart financial move and have positive environmental benefits by decreasing carbon emissions and energy dependence on non-renewable sources.
Buying Solar Panels
If you’re thinking about investing in solar panels, conduct extensive research and find a reputable installation service provider to assist you. Look at reviews and testimonials. Customer feedback offers insights into the way the company works, how they deliver its services, and whether they’re an excellent fit for your needs. Discuss costs and benefits before green-lighting the project. Don’t hesitate to ask about fees to ensure you don’t end up with bogus charges.
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