Solar energy might seem expensive at first, but it’s actually a smart way to save money over time. At Sun Farmer’s Group, we want to help farmers and business owners cut their electricity bills with solar power. In the past, many people thought solar panels cost too much. But now, thanks to new technology and special discounts, more people can afford them. In this article, we’ll talk about what makes up the cost of solar energy. We’ll show you why solar energy is a smart long-term investment and how switching to solar can help you save a lot of money as the years go by. We’ll also give you tips on how to get the most out of your solar project and save even more money.
The Upfront Costs of Solar Energy
Let’s establish some of the upfront costs associated with any solar energy project. This will make understanding why and how it is becoming more affordable than ever to install solar energy on your home, farm, or business.
Hardware costs. While this isn’t the majority of the cost, hardware can account for up to 35% of the initial cost of any solar energy project. This is everything from the panels themselves to inverters and racking systems used to hold the panels in place. These prices can fluctuate and are heavily affected by the supply chain which can add up to an additional 10% on the cost of hardware.
Installation & labor costs. Depending on the state, labor can account for anywhere from 7-15% of the total cost of your new solar project. Although DIY is an option for smaller projects, this is certainly not an option for large-scale industrial or agricultural projects. It’s important to remember that the difficulty of the project can greatly influence the labor costs associated.
Permitting and inspections. Although this can vary from state to state, there are permitting laws in place to ensure that solar systems are installed safely and adhere to all of the local zoning and electrical codes. This can add a significant amount of money to the grand total of a solar project, especially if there are any discrepancies discovered during the process.
The Costs Associated With Solar Energy Are Trending Downward
Although the initial costs for solar energy can be significant, there is some good news. As of 2024, the total cost of solar energy per project has been trending downward since 2011. This is primarily thanks to the cost of the panels themselves decreasing over the years. Additionally, as processes become more streamlined, the hidden soft costs for installation have lessened. These factors alone have moved other industries and homeowners into the solar energy category.
Federal & State Grants for Sustainable Projects Are Growing
With the costs of materials and other factors dwindling, solar energy is still an expensive undertaking for most people. At scale, some solar projects can cost millions of dollars from start to finish. The federal government has recognized this and come up with a solution to make sustainable projects more accessible. The Rural Energy for America Program or “REAP” grant is a federal loan that is awarded to agricultural producers and rural small business owners. Farmers represented a large percentage of potential solar users who were left out by high barriers to entry costs. The REAP grant can award some farmers with up to $1 million toward their solar project, giving farmers more chances than ever before to save money with sustainable energy.
Solar Energy Saves You Money Long Term
While the upfront costs of solar energy are being lessened by government and state sustainability programs, it’s still a significant investment. The beauty of solar energy is that financing your project means you can replace a growing energy bill every month with a loan payment that is easier to manage. This lower monthly payment means that most people start to see cost savings sooner than later. Even better, once the loan is completely paid, the user enjoys no energy bill whatsoever for the remaining lifetime of the system. That translates to more money in your pocket!
Solar Panels Are Relatively Cheap to Maintain
Even though the monthly loan payment is typically less than an energy bill, it’s not unusual to question the cost of maintenance for a solar energy system. That’s where there is even more good news. A solar system requires little to no maintenance over the span of its lifetime. The panels themselves only require light cleaning and maintenance to keep them functioning properly. This can be as easy as spraying them down with a hose from time to time.
Final Thoughts on Why Is Solar Energy So Expensive
Installing solar panels at first can be expensive, but there’s no doubt that there is a cost savings down the line. As the costs of solar continue to fall year to year and more programs become available, the accessibility will increase and cost barriers break down even further. At the end of the day, sustainable energy is trending toward being the rule and not the exception. If you have questions about how much your solar energy system would cost for your project, reach out to a professional installer to get the ball rolling; solar energy might be easier to afford than you think!
The Sun Farmer’s Group Turnkey Solution
Sun Farmer’s Group is the first true turnkey solution for agricultural solar energy. Our proprietary program has brought all of the in-house expertise to the table in grant writing, financing, tax credit monetization, installation, and so much more. Unlike other companies, Sun Farmer’s Group empowers farmers with a no-money down solution that greatly reduces and eventually eliminates your power bill altogether. The future is as bright as the sun, and we’ll help you turn it into power!
Get in Touch
If you’re ready to learn more about how Sun Farmer’s Group can help you put more money in your pocket, call 877-417-3222 today!
