Solar Photovoltaic Grid Tied Small Home Power Costs

Photovoltaic (PV) electric power is available wherever the sun shines. The amount of PV power that can be harvested depends on the amount of available sunshine which varies by latitude, cloud cover, season of the year, and of course the time of day.

A grid-tied PV system generates grid-compatible electricity that is either consumed immediately on-site, or injected to the grid for off-site distribution.

You will find that the cost of an average grid tied small home installation varies by available solar resource, type of PV technology and its power rating, regional mark-up characteristics, accessories, and the labor rate. In the United States this market is still small and generous incentives still apply, resulting in high mark-up’s and low competitive-pressure on providers to reduce prices.

In the following table the Labor Cost figure is what the able DIY person should expect to save by performing the corresponding tasks.

Grid tied small home power: provide and install the complete system to supply an average of 5,500 kwh/year with roof-mounted PV panels, grid-tied power inverter, mounting structure, protections, and cabling. Include electrical design drawing, 5-year maintenance contract, and all related materials, supplies, transport, equipment, finish-trim, final adjustments, and clean-up.

• Higher solar resource zones are like eastern Arizona.
• Moderate solar resource zones are like eastern Oklahoma.
• Lower solar resource zones are like New Jersey.

Other considerations and costs

• Not included are taxes, permitting fees, and the administrative and sales labor costs that all vary widely across (State) regions.
• These installations are highly regulated by local administrations and power utility companies, navigating these submittals can be complex and costly (not included).
• Local and national incentives and rebates may be available (not included) that can reduce cost but add significant mark-up variability across regions.
• The Labor Cost figure does not include displacements, overnight stays, or any special engineering intervention.
• During the initial inspection the contractor should inform the homeowner of any and all necessary modification or upgrade on electrical circuits or building structure.
• An electrical design drawing should be provided and may be necessary if local inspection is required, or if incentives and rebates are applied for.

Check out our guide if you need a loan for your home improvement project.

DIY considerations

• Packaged kits are available from distributors that are DIY friendly.
• These installations will encounter significant administrative process of permits.
• Roof-top work is among the most dangerous of construction activities, and roof penetrations must be weather-tight.
• Electrical circuits require attention to ratings and the prevention of fire-risk.

References

• Wholesale Solar: http://www.wholesalesolar.com/ and http://www.wholesalesolar.com/solar-information/how-to-save-energy/power-table
• NREL: https://openpv.nrel.gov/search
• NREL: https://emp.lbl.gov/sites/all/files/german-us-pv-price-ppt.pdf
• sunrun: http://www.sunrun.com/solar-lease/cost-of-solar