Changes In The Cost Of Solar Panels in 2022 And The Ways To Plan Your Solar Project Around Them
The State Of Solar Panel Pricing in 2022
As of the beginning of 2022, the average cost of a residential solar panel in the United States is between 11000 $ and 25000 $ before federal and state tax credits are applied. With those, you can expect up to 40 percent of tax returns depending on how your state credit combines with the federal one. The final cost of the panel depends on several factors, including the size of the panel, household electricity consumption, type of the panel, installation and maintenance costs, and even the state of your house (the roof especially).
In 2022, the prices for solar panels had gone up approximately 10 to 20 percent, depending on the panel manufacturer. The main reason for this is the producer price inflation and the increase in prices of raw materials, as well as supply chain issues. Polysilicon, a material from which solar cells are made, has experienced a dramatic price increase.
Still, within the last decade, the prices of solar have decreased dramatically by between 60 and 90 percent. If considered from this angle, solar panels are still very cheap this year. The costs have also fallen between 10 to 15 percent within the last few years, only increasing in 2022.
Are Solar Panels Worth The Investment Today?
Regardless of the inflation-induced price spike, solar panels are still worth every cent of the investment. Solar panels give you at least 20 percent of return on investment within the first year of operation. Depending on the specifications of your project, your solar panel is expected to itself in between 3 to 9 years. Even with the ongoing inflation, this is an excellent result. A solar panel produced in the 2020s lasts between 25 and 30 years. Investing in solar today makes even more sense if you are planning to live in your home for a long time. If you are not planning to stay, you are still in luck as solar panels increase the price of your property.
With society moving towards reducing fossil fuels, more and more businesses and households are expected to go solar in the upcoming years. Solar power is abundant, reliable, and good for the environment. If you do not go solar today, you may be the last one in your neighborhood to make this transition ten years from now.
Solar panels help dramatically cut your utility bills, especially in states like Texas and California, where favorable legislation is in place. The legislation in most U.S states is likely to catch up in the upcoming years.
While the inflation of 2022 negatively affects the current pricing of solar panels, you can still benefit from high government incentives in 2022-2023, including a 25 percent federal tax credit and a state tax credit up to 25 percent in many U.S. states. Right now, the trend is for federal tax credits to decrease each year. With the decision to install a solar panel, it is best to consider both long-term and short-term financial outcomes.
What To Do About Solar Panel Prices in 2022?
If you feel that the solar panel price in 2022 is a bit too high for you but still wish to install one this year, cutting the costs of the solar installation components is a way to go. One simple way to do it with wiring is to install aluminum photovoltaic cables instead of copper ones. For instance, an 8 Aluminum 600V PV Photovoltaic Cable costs 0.47 USD per foot as opposed to an 8 AWG 19/.0295 Strands PV Wire Photovoltaic Cable Single Core 600V, which will cost you a whopping 1.40 USD per foot. As long as your aluminum cables are protected from oxidation, going aluminum is a nice option to save you a buck.
Another thing to consider to save costs is polycrystalline vs. monocrystalline panels. Due to the specifics of production, polycrystalline panels are cheaper.
