The price of your new solar system will, of course, depend on how big it is. Or to put it another way - how many kiloWatts (kW) you choose to install.
You'll be pleased to know that prices have dropped significantly since I started SolarQuotes back in 2009 (when a piddly 1kW system cost $10,000!) - the Australian Photovoltaic Institute summarises recent price trends quite well.
And despite what you may have heard, the price you pay is still heavily subsidized by the government-run solar rebate scheme.
The rebate fluctuates based on the value of things called STCs. With the current price of STC's (as of March 2017), you are looking at up-front savings of about $750 per kW installed.
Here's how the pricing works out for a typical 3kW system:
(Note: these solar panel prices are very approximate and assume quality components. To get an accurate pricing for your particular situation, I would advise getting 3 quotes from local installers)
| Typical cost of an installed 3kW solar system: | $7,000 |
| Government Rebate: | $2,250 |
| Cost to you for 3kW of solar power: | Approx $4,750 |
Whether a 3kW system is an appropriate size for you or not is a good, and difficult, question to answer. It is not as simple as buying a solar system that generates the same amount of electricity that your household uses. Why? It is a long answer and it's here.
If you clicked the previous link your head may be spinning (especially if you watched the video of me droning on!). If it is all a bit much, consider getting 3 quotes through this site. Then the solar power system installers can advise you exactly what you will need based on your energy consumption habits and location.
Approximate Costs of Bigger Solar Systems After the Rebate
The variation in prices below is mainly down to the quality of the hardware used. To use a car analogy (as most people are more familiar with car brands than solar power brands!) expect the lower price range to be "Hyundai/Kia" level brand and the upper cost to be a "BMW" level brand. I'll leave you to decide if BMWs are worth paying more for than Hyundais!
Approximate cost of a good quality solar system with Tier 1 solar panels (fully installed) as of March 2017:
American-Made Vs. Foreign: Does It Matter?
When considering solar panels, buying American-made can be a challenge. China is the overwhelming leader in solar panel manufacturing, although panels are also made in the United States, Korea, Germany, and Japan.
About 5 to 10 percent of customers ask for American-made solar panels, IPC’s Caldwell said.
“Most of the people we deal with want a good product,” she said. Because the panels are key to the whole project, she said, “I wouldn’t recommend that they shop for cheap panels.”
IPC generally uses solar panels made by Canadian Solar and Solar World, whose panels in particular Caldwell calls “a nice choice.”
Solar panels made in the United States typically cost 80 cents to $1 per watt, which is 10 to 30 cents more per watt than imported panels. Premium panels can cost up to $1.25 per watt. The price gap has narrowed in recent years, partly because of U.S. Commerce Department tariffs on certain imports by China and Taiwan. The tariffs are a result of artificially low prices by China based on China’s government-subsidized solar factories.
The difference in price is not necessarily from cheaper goods – although, Caldwell pointed out, it can be, so be cautious – but from China’s scale and supply-chain development as well as government subsidies.
In addition, deciding whether a panel is “American-made” can be complicated. Many multinational companies have U.S. headquarters and also manufacture in the United States. For instance, Solar World is headquartered in Germany, but builds solar panels in the United States, so most installers consider them American-made.
Of the U.S.-headquartered solar companies, 90 percent of the manufacturing is done outside of the United States, according to a report by the National Renewable Energy Laboratory and Massachusetts Institute of Technology.
Here’s a look at some U.S. solar panel manufacturers:
- 1SolTech: Established 2008. Headquarters and manufacturing in Farmers Branch, Texas.
- Auxin Solar: Established 2008. Headquarters and solar panel factory in San Jose, California.
- Itek: Established 2009. Headquarters and manufacturing in Bellingham, Washington. Serves Washington, Oregon, Idaho, and Minnesota.
- Suniva: Established 2008. Headquarters in Norcross, Georgia; manufacturing in Georgia and Michigan.
- SunPower: Established 1985. Headquarters in San Jose, California. Manufacturing in both United States and the Philippines.
- REC Solar: Established 1996. Headquarters in San Luis Obispo, California. Manufacturing in Singapore.
- Solar World: Established 1988. Headquarters in Germany; Manufacturing in Eugene, Oregon, and Germany.
- Sharp Solar: Established 1959. Headquarters in Japan; manufacturing plant in Memphis, Tennessee.
- Kyocera Solar: Established 1971. Headquarters in Scottsdale, Arizona. Manufacturing in California and Mexico.
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