COST OF SOLAR SYSTEM - BigOrion

COST OF PV SYSTEM INSTALLATION

The cost to install a solar photovoltaic (PV) system includes two broad cost categories: hardware costs and soft costs.
• Hardware costs include all the materials needed to construct the system: module, inverter, racking, and electrical wiring.
• Soft costs include the cost of installation labor, the cost of all relevant permits, and all overhead costs including the marketing, sales and administrative costs associated with the system.

While the total cost of residential PV systems has declined by more than 65% over the last decade, hardware costs have fallen much faster than soft costs. Therefore, the soft cost share of total residential system cost has risen from 58% of total system cost in 2014 to 65% today 2019. A primary factor driving this increase is direct and indirect costs associated with permitting and inspection

Examples of soft costs
• Installation: The cost of labor to mount and connect the system
• Permits: The cost of obtaining permits required to install solar panels
• Taxes: Sales tax and other taxes associated with the installation
• Marketing: The cost of acquiring new customers
• Administrative: The cost of managing the business, including accounting and other overhead
• Supply chain: The cost of managing inventory and sourcing materials
• Decommissioning: The cost of taking apart and disposing of the system at the end of its life

The cost of solar PV system varies, and depends on the quality of the pv system, the type of the panel, labour and location. Even, the cost of installing PV system has decreased drastically in the last ten years and this is related to the decrease of the cost of hardware materials, expecially solar cell componenents The average cost per watt to install solar system in generally is $2.86 , today this cost has reduced by 35 to 40%, prompt the opportunity to invest in solar energy.

Governments incentivize solar energy investment. Adding to the government incentivices, Bigorion company can provide you solar loan through its solar financing companies partners for your solar energy needs

for more information, contact us at email:solar@bigorion.com

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