PV solar panel systems are typically valued at price per watt installed. As of January 2020, the average installed price was $2.96/watt. The true value of the energy produced is also affected by efficiency, which varies from about 15% to about 23%. Solar panels only can be found online for about $1.20/watt or lower but can vary quite a bit in quality.
I chose 2014 since I had a grid-tied system installed on my roof in Ohio that year. For comparison my own 4.3Kw system cost about $3.49/watt with polycrystalline Chinese-made Trina panels that were around 16% efficient. However, I was able to get the 30% federal tax credit which is at 26% for 2020. Another factor that has changed since then is the 30% tarrif on Chinese-made solar panels imposed by the Trump administration in 2018. In terms of overall system cost before tax credits or efficiency gains, a system is about 15% less in 2020 compared to 2014. Add in the tax credit change and the improvement drops to about 10.3%.
My Trina panels are only at about 15.9% efficiency so there is much improvement in some of the newer more efficient panels. Some of the better panels now are at over 20% efficiency. I am going to assume here an average of 20.5% efficiency for comparison. That is a 4.6% improvement. Original economics for my system started out at about 12.5 years for payout but due to changes in state renewable energy credits just after installation dropped to about 13.5 years for breakeven. Improvements in efficiency combined with lower overall system costs mean that for a system installed today my breakeven might be 11.55 years, an improvement of just about 2 years, which is pretty significant. The bottom line here is that even with some fade-out of the federal tax credit and tariffs on Chinese panels, which are cheapest, the incremental improvements made between 2014 and 2020 are significant, making an installed 2020 PV solar system up to 15.5% cheaper than one installed in 2014.
The changes in state renewable energy credits (SRECs) indicate that the economics of home solar vary by state. State renewable energy portfolios that require a certain amount of energy to be renewable are one reason for the variation. Another way that states vary is by net metering rules, meaning how the power company pays the home energy producer for their excess generation. There are also varying fees for purchasing reversible meters and for power purchase agreements. Some states have more incentives than others.
One can also save money by buying one’s own panels and self-installing rather than purchasing from an installer. One needs to get a licensed electrician to hook the panels to the inverter. In most states grid-tied systems require that professional solar panel installers do the work so self-installing is only really an option for off-grid systems. While complete systems can be found online for about $1.50/watt, racking systems, and installation including acquiring required permits in many areas adds much more to cost.
Best Values in Solar Panels for 2020
Best value in solar panels depends on the particular attributes of a site such as roof space, roof orientation, roof pitch, region, and shading. With abundant space and ideal orientation, one might get a better value for less efficient solar panels. But for someone with limited roof space, shading, and less than ideal orientation, which is more common, the best value will be the highest rated panels.
According to Energy Sage, a reputable solar evaluation site, the best panels for 2020 are made by, LG, SunPower, and Panasonic. The main reasons given are competitive pricing, high efficiency, and the 25-year warranties. These are panels made with monocrystalline cells, more efficient in sunlight to power conversion than those made with polycrystalline cells. However, they do cost more. I am not sure that utilizing them particularly in this comparison is at average 2020 cost, but it should be reasonably close.
Energy Sage ranks solar panel value by four criteria: cost, efficiency, heat coefficient, which measures how much efficiency is lowered by high temperatures, and warranty. The 25-year materials warranty is very significant since many only offer 10-12-year warranties.
LG pitches efficiency (21.7%), a very good heat coefficient, and a 25-year warranty. They note that a superior heat coefficient is especially important for warmer areas of the country where more efficiency could be lost for longer time periods.
SunPower has the best efficiency in the business at 22.8%. Durability is built into their manufacturing process, they say. They also note that their efficiency decline rate over the years is considerably less than that of other panels, 8% over 25 years vs. 19% for competitors. That could be a significant cost advantage over time. They also have the 25-year warranty.
Panasonic emphasizes a good water drainage system, a 25-year warranty, and performance/durability testing.
References:
What are the best solar panels on the market? complete ranking table
https://news.energysage.com/best-solar-panels-complete-ranking/
https://na.panasonic.com/us/energy-
https://www.lg.com/us/solar
https://us.sunpower.com/
How Does Heat Affect Solar Panel Efficiencies? – by Stuart Fox. In Civic Solar/CED GreenTech
https://www.civicsolar.com/article/how-does-heat-affect-solar-panel-efficiencies
How Much Does a 4000 Watt (4Kw) Solar System Cost in 2020? - by Energy Sage
https://news.energysage.com/much-4000-watt-4-kw-solar-system-cost/
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