Uncovering The Costs Behind Solar Panel Installation

It’s no secret that the cost of solar panels has been dropping in recent years. In fact, a report from the Department of Energy shows that the cost of solar energy installations has fallen by more than 70% since 2010. While this is great news for those looking to invest in solar energy, it can be tricky to figure out exactly how much a solar panel installation will cost. This article will break down some of the costs associated with installing solar panels and discuss ways to reduce those costs. So, whether you’re just getting started with investigating solar or are ready to take the plunge, read on for some helpful information!

Solar Panel Installation and Labor

The cost of a solar panel system depends on a number of factors, including the size of the system, the type of panels used, and the complexity of the installation. Labor costs can also play a significant role in the total price tag. In general, installation and labor make up about 24% of the total cost of a 6kw solar panel system. This means that for a typical system, you can expect to pay around $4000 for installation and labor. Of course, the actual cost will vary depending on the specific circumstances of your project. However, this gives you a general idea of what to expect in terms of installation and labor costs for a solar panel system.


One of the largest expenses associated with installation is the inverter, which is responsible for converting direct current (DC) into alternating current (AC). Inverters typically account for about 10% of the total cost of installation, making them a significant investment. However, they are an essential component of any solar panel system, and their long-term benefits often outweigh their initial cost. With proper maintenance, an inverter can last for many years, making it a sound investment for anyone considering going solar.

Soft Costs

The cost of solar panels has fallen dramatically in recent years, making them an increasingly attractive option for homeowners and businesses looking to reduce their energy costs. However, the cost of installing a solar panel system remains high, due in large part to what are known as “soft costs.” These are the costs associated with sales and marketing, permits and inspections, customer acquisition, and system design. Together, these soft costs can add up to 30% or more of the total cost of a solar panel system. While some of these costs are necessary to ensure that the system is installed correctly and meets all safety standards, others are simply the result of inefficiencies in the solar industry. As the industry matures, it is likely that these soft costs will come down, making solar power even more affordable.

How to Reduce Costs?

Federal, state, and utility incentives are available to help offset the costs of solar panels. The federal solar tax credit allows homeowners to deduct 26% of the cost of their solar panel installation from their federal taxes. State and utility incentives vary by location, but they may offer additional rebates or discounts on the purchase and installation of solar panels. With these incentives, the cost of solar panels can be significantly reduced, making them a more affordable option for homeowners.

Contact us at Solar Energy Solutions of America to find out more! We offer many services, including solar electric installation and repair.