Whether you're a project developer, local installer or a homeowner, the biggest concern before designing a solar project will be solar panels. They take up roughly 50% of all project costs and could have a further cost impact on the overall lifespan of a project (~25 years).
Link to OUSHANG SOLAR
Life can be overwhelming when there are hundreds of suppliers with so many different technologies to choose from. So I interviewed Tier-1 panel suppliers and asked what would be the top 5 things to consider before choosing which panel to buy.
I would like to extend my thanks to guest authors Frank Cestero, CFO at Solartech Universal, Crystal Liu, Senior Sales Manager at Talesun Solar Technologies and Indira Sanchez, Distributed Generation Sales Manager- Mexico at Jinko Solar for sharing the insight and expertise!
Frank (Solartech Universal): Lowest cost of entry? Long term ROI? Environmental impact? Utility offset? Power concentration (i.e. limited real estate)? Location of manufacture (ex. US v. China)? Structural integrity (i.e. Snow load or Wind load)?
These factors and many more could point you in a variety of different directions. Although there may be hundreds of manufacturers who make a 300-watt module, each module has distinguishing characteristics that may make it the best fit for you.
*Photo credit: https://news.energysage.com/understanding-your-solar-panel-payback-period/
Frank (Solartech Universal): The 2 most common sizes are 60 cell (or equivalent) and 72 cell. Typically the 60 cell module (panel) is preferable for residential and rooftop commercial/ industrial jobs. Why? There are many reasons, but the greatest reason tends to be the size and weight. The smaller modules are more easily configured on rooftops where designers often need to work around the building or home's mechanical systems. For installers, the weight and dimensions make them easier to handle with just one person.
*Photo credit: https://www.wholesalesolar.com/blog/60-cell-vs-72-cell-solar-panels/
Indira (Jinko Solar): I would say that you need to consider the quality and brand of the panel. When you buy panels from a brand that has a reputation for timely delivery and quality assurance, you can expect the same type of service every single time. It might be worthwhile to consider the local support network post-purchasing. Not all solar panel companies have the local sales and technical support teams in the country you live in. These teams might also provide training at free-of-cost to help install the panels for your projects. It's also important to feel at ease when you are expecting a delivery of panels. If your project's construction is set to begin at a certain date and the panels arrive late, you might incur postponement fees from the off-take customer.
Crystal (Talesun Solar): It's important to know the financial status of the vendor. What happens if the company supplying panels goes bankrupt? Is there a warranty pass-through in place? You might want to go with a company that has good financial health and has the potential to grow even bigger. Another thing to consider is the company's total capacity. Is the company you are thinking of buying from capped in terms of manufacturing capacity? Check with the sales rep from the company to verify the overall supply they own before placing an order. Sometimes the current capacity and the manufacturing plans could be an indicator of their financial health!
Frank (Solartech Universal): If I&#;m flipping the home or selling the PPA, maybe I can get away with a low-cost option. If I plan on keeping the property beyond the federally mandated minimum to collect the tax credit, I probably want to spend a little more on the front end to maximize my ROI over time. Premium panels tend to fail less often, operate more efficiently and degrade less year-over-year during the life of the panel.
The state of California maintains a listing of modules based on PTC (Photovoltaics for Utility-Scale Applications Test Conditions), which rates expected performance in &#;real-world applications&#; as opposed to laboratory or factory conditions. The higher the rating, the better the performance. These ratings can be found at https://www.gosolarcalifornia.org/equipment/pv_modules.php. (Hint: Look for Solartech near the top.)
Crytal (Talesun Solar Technologies): Price of a panel changes almost every week. With the industry being impacted daily by policy changes and market forces, the quoted price for a solar panel could increase or decrease anytime. It is important to negotiate good payment terms with the supplier. Will you be out of cash when it's time to actually pay for the panels because the payments haven't arrived from your customers? Do you know your projected cash cycle? These are all important questions that you need to ask yourself before deciding to buy panels in bulk.
If you have found this article helpful, please let me know in the comments below!
Justin Jeehoon Park is a Business Analyst at Targray focusing on Solar and Energy Storage. Graduated with an M.B.A. from McGill University- specialization in Business Analytics and a B.A. in Political Science from UCLA, he helps solar companies to maximize working capital by structuring more flexible payment terms with suppliers and customers. In addition, he is a returned Peace Corps volunteer (Cameroon -) and worked with Syrian refugee youth in Canada.
Considering installing solar panels in Fort Wayne, IN?
The innovation of photovoltaic (PV) cells, also known as solar panels, was created to meet the demand for increased energy consumption. Despite your location or roof shape, there is an option that works for you.
Best of all, these mighty warriors might just be the single best investment you can make in your home.
Over 50 years ago, the scientists at Bell discovered that silicon (found in sand) creates an electrical charge when it is exposed to sunlight. Solar panels are founded on this basic premise.
Today, the market has evolved to offer four different types.
1. Polycrystalline: These are the original PV cells. They are usually rectangular shaped created by pouring melted silicon into a mold. They are competitively priced and easy to install but are not as heat-tolerant or efficient as other panel types.
2. Monocrystalline: These panels are made of pure silicone and have a cylindrical shape. This gives them higher levels of efficiency and produces more energy with fewer units. Due to their manufacturing, these tend to be more expensive than polycrystalline panels.
3. Thin-Film: This is a relatively newer type of panel that is rolled onto the roof&#;s surface. This option is less expensive and is less intrusive than bulky panels. However, they are also less efficient and tend to degrade quickly.
4. Solar Shingles: This is the latest in solar technology. Combining existing roofing shingles with solar technology gives the best answer to maintaining a beautiful roof and providing energy. It is important to note that solar shingles are also the most expensive option on the market.
A solar panel system is heavy. A solar technician can evaluate your roof to determine if it will need any additional support.
Your roof type, shape, material, degree of pitch, and roof orientation all matter. These factors determine how much sunlight your roof can absorb and what type of panels will work best for your needs.
Traditional panels come in two sizes, either 60-cell or 72-cell. A 60-cell panel is 65 inches tall. A 72-cell panel is 77 inches tall. Both are approximately 40 inches wide.
Either one can be installed on a residential roof, but panel dimension is important to consider depending on your roof size.
Solar shingles are similar to the size of regular asphalt shingles and can be used on any size roof.
There are two main types of solar technology: Mono PERC and N-Type.
Mono PERC (Passive Emitter and Rear Contact) technology is the standard for most residential applications. This technology takes a traditional solar cell and adds an additional layer to the backside. The extra layer acts as a mirror and gives the light a second chance to be absorbed. This gives better absorption of solar radiation.
N-Type solar cells have the addition of phosphorus. Phosphorus has one more electron than silicone, making the cell negatively charged and allows the cells to be more efficient. These are particularly useful in small spaces.
Most panels come in either silver or black. While some budget options are made with aluminum, the color of your panels has little to do with efficiency.
Start by looking at your available roof space and your monthly power usage. Then compare the prices of panels on a cost-per-watt basis to get the energy you need with the space you have.
PV cells or panels are made to withstand external elements. After all, they sit on rooftops and are subject to harsh temperatures and weather changes. They will degrade over time. But this rate of degradation can vary heavily from one panel to another. Over time, they will reduce their power output. Typically, this is at an average rate of 0.5% each year. However, this rate of degradation can vary per provider, and some higher-end panels have a significantly longer lifespan.
Warranties vary by manufacturer but will usually guarantee that the panels will generate at 80% of the rated power after 20 years of use. These numbers may vary a bit between manufacturers so it&#;s important to check with your solar company to see what warranty rates they offer.
More solar energy systems are being installed on homes than ever before.
Is this a trend or an evolution?
Is it really worth the overall cost?
We&#;ve broken down the most common pros and cons for homeowners to decide for themselves whether solar power is the answer they&#;re looking for.
Pros
Solar power is a renewable energy source. Energy from sunlight is available in any area nearly every day. It is not an energy source that can be cut off or depleted. PV cells work in any climate as long as you have daylight.
Also, using solar energy reduces electricity bills so you&#;re paying less for the energy you are using. In some cases, your energy bills could be next to nothing. Homeowners may also be compensated for excess energy created that is fed back into the power grid.
You&#;ll need to keep the panels clear from debris, but they have a relatively low maintenance cost. The inverter may need to be changed every 5-10 years, but the other components of the system are maintenance-free. Quality panels are manufactured to withstand the elements and can last 40 years or more.
For more information, please visit Polycrystalline Solar Panels Factory.
They also can increase your home&#;s value by about 4%. This can come in handy when you go to sell your home.
Cons
A downside for some is that it is usually recommended to stay connected to the grid after installing your solar energy system. This is seen as an &#;insurance policy&#; in the case of your panels becoming severely damaged or they malfunction.
There is a possibility that your solar energy system could increase the price of your homeowners policy because of the value they add to your home, you may need to add additional coverage.
Solar installation is not a DIY process and does require a professional solar installer in Fort Wayne, IN. Some of the less common roof designs may require special installation to secure the panels. Only a licensed installer will know what is required.
Finding a quality PV installer in your area can be difficult. Be sure to choose a local company with a positive reputation for expert workmanship and quality products.
The initial cost of the panels, inverter, batteries, wiring, and system installation can be expensive. Although you could recoup the cost over time, it is still a required investment upfront. However, if you live in an area where your electric costs are already low, you may be underwhelmed by the amount of savings.
Solar power may not be a great investment if you are planning to move soon. Although they can increase your home value, you may not recoup enough to offset the installation cost. There are a lot of counterfeit or cheap PV cells on the market that are not high quality and do not last. If you want the most out of your investment, pick high-quality panels that will last 3-4 decades.
There is a huge range in the cost of solar energy systems depending on the type and model. The overall startup cost can be anywhere from $3,500 &#; $35,000.
The price depends on several factors.
Installation and Labor
This can account for more than 50% of solar energy system costs. Installation and labor depend on your location and are usually between $15,000 and $25,000. It&#;s important to choose an installation company that utilizes safe practices and is compliant with both manufacturer warranties and local codes. Typically, regions closer to the equator are less expensive to install than those farther away.
The Products
The actual products account for about 46% of the overall costs. Production of photovoltaic cells requires high-grade silicon and lithium, neither of which are cheap materials. This also includes racking, mounting, wiring, etc. High-quality PV cells require advanced hardware and materials.
The Inverter
Inverters usually range from $ to $ and have a lifespan of between 12-15 years.
Permitting and Inspections
This is typically only a few hundred dollars but something that is required to ensure your solar system follows local ordinances.
The average cost of solar installation is around $16,000. However, when considering the cost of the solar panels, it&#;s important to look at the cost-per-watt rather than the overall cost per panel.
This gives you a clear picture of how much energy you&#;ll receive from your panels.
A common misconception is that solar power will erase your electricity bills completely. While this is technically possible, it&#;s not always the case.
Solar panels are designed to significantly reduce your electricity bill each month.
But how long will it take for those monthly savings to make up for the initial cost of installation?
This is referred to as the solar payback period. The payback period is the length of time it takes to recoup your initial investment. Typically, this is between 4-9 years.
The answer depends on the hours of daily direct sunlight available to the solar cells, the angle of your roof, the size of your panel system, and the rate of electricity you currently use.
You can calculate your own solar payback period with this formula:
Step 1: Determine the size of your system.
Average electricity usage per year divided by 1,700 (the average electricity generated by one panel) = total solar panel system size
10,000 kWh/1,700 = approx. 6 kW solar system.
Step 2: Know the true cost of your solar system.
$17,000 is the average cost before incentives.
With an average tax credit of 26%, the total system cost is approx. $12,600.
Step 3: Calculate energy production.
Multiply the number of kW your panel produces (about 1,700) by the size of your system.
1,700kW x 6kW = 10,200 kWh per year.
Step 4: Cost of electricity in your area.
Take a look at your meter and take your energy production (10,200 kWh) and multiply it by the going electricity rates.
24 cents per kWh x 10,200kWh per year = $2,450 savings each year.
Total solar payback (in years) = Net Costs (step 2) / Average Annual Savings (step 4)
12,600 /2,450 = approximately 5 years
It&#;s important to keep in mind this is only an estimate and doesn&#;t consider other benefits, payback incentives, or the additional savings from adding batteries to your system.
According to the Solar Energy Industries Association, the average price for solar energy has already fallen more than 70 percent, and the prices are expected to continue to drop.
Still, consumers can take advantage of incentives to reduce the final bill of their system.
Federal Tax Credit &#; Tax credits are available for new solar installations that can offset the cost by 20 percent or more for any citizen paying federal taxes.
State and Utility Incentives &#; There are many additional incentives available in your state which can reduce the cost again by thousands of dollars.
Photovoltaic (PV) cells or panels are a low-maintenance addition to your home. High-quality PV cells are made to withstand high winds, snow, ice, and hail. They typically last about 25-30 years if they aren&#;t physically damaged. Over time, their output will reduce until they reach a point where it&#;s time to replace them.
You can take steps to extend the lifespan of your panels with proactive home maintenance, including:
Going solar is an investment in the earth&#;s future and your own. Whether you&#;re trying to reduce your electricity costs, minimize your carbon footprint, or both, going solar might be the solution you are looking for.
If you live in an area of the country experiencing middle- to upper-level utility rates, you can pretty much guarantee that even a few solar panels will save you big bucks.
If you haven&#;t already, start by getting a solar cost and savings estimate to see if the math is in your favor.
Contact us to discuss your requirements of 72 Cells Solar Panels for Businesses. Our experienced sales team can help you identify the options that best suit your needs.