When trying to analyze the costs of installing solar panels, you must make sure to include all the significant costs associated with it. Meaning, you should not only include the material and installation costs, but also the maintenance costs as well as the savings that it will make in the future. After analyzing all of the costs, you need to make an assessment. You have to ask yourself if the total cost of installing solar panels is covered by the potential benefit that will be received in the long run.

What to take into account?

First, let’s analyze the material cost. $6-$9k/watt solar energy should be your planned investment. How big or small your house is not relevant, what matters is your electricity consumption. How much electricity you consume will determine how many solar panels you require. Also, you need to check how much sunlight your house or building receives. Depending on your electricity consumption, and how much electricity you want the solar panels to produce, your cost of solar panel (including material, installation etc) will range between $30,000-$40,000.

What else?

This cost does not take into account any incentives that you might be able to receive in your area. Your government might be willing to subsidize your installation, which might save you up to 80% of the total cost. But this alone is not convincing enough for many people to invest $10000 on solar panels. Hence, even with such incentives, you need to look at some other aspects:

Maintenance Cost: This is a recurring cost, and if it is substantial then it might not be feasible for you to install the solar panels.

Savings on Electricity bill: If your electricity bill drops drastically, and saves you a lot of money, then that is a plus point in favor of installing solar panels, as it will, in the long term, recoup the total cost of solar panels.

Another major point that you should consider is the increased value of your property. Remember, Solar panels are a long term investment, which will recover its cost within 5-8 years, and then give you three times more advantage throughout its lifetime. Not only that, if you plan on selling or renting out your property in the future, it will be worth much more than what it was before the installation of the solar panels. Also, think about the good you will be doing for the environment. You will not only benefit your own self, with no fear of increase in electricity prices or other electricity related concerns, but at the same time contribute positively to the global environment.