alt Hacker NewsWhy do I keep getting $20k quotes to install it then in the US. We seem to be doing something incorrectly here. The underlying hardware seems cheap (through independent research) but the labor and add in fees seem to be making this expensive. At sub $10k prices for the panels + batteries I would get it yesterday.
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This is a good question - there are fairly high imposed tariffs on solar in the US[0] but I think the labor is the big part. Over here in the UK, solar installation would cost about $12k dollars, so quite a bit cheaper, but still not below $10k.
One thing that isn't super obvious from the article is that a lot of it is talking about industry solar panels rather than rooftop. The overheads of installation etc get a lot smaller if you're installing a whole bunch at once.
This isn't to say that installing solar panels on your house is a bad idea - they normally pay for themselves after something like 10 years from memory, so are similar to double glazing.
[0] https://www.energy.gov/cmei/systems/overview-trade-and-polic...
The regulatory overhead to grid-connect is a _significant_ portion of the price, both for the actual paperwork labor and because of the premium it imposes on the system components (you can't use inexpensive non-UL-listed panels)
I suspect a huge chunk of that is labor costs rather than materials.
For the same reason you don't have a small coal power plant in your backyard - scale matters.
Many private utilities in the US have fought against residential solar, and are seemingly motivated to act against it as something against their long term interests. In California the amount of Public Utilities Commisssion retrograde policy is ridiculous.
Don't confuse grid solar with on-prem
On-prem has a problem of distributed labour costs.
On-prem might eventually become cheaper, but my guess is that won't happen any time soon.
For the time being, centralized and at-scale installation is where you can get much, much lower labour per watt costs.
I diy installed a 13kw ground mount with a 32kwh battery for $18,700 before the tax rebate last december. 6 year payback at my current rate of $0.12 kwh after the rebate. Its a complete no brainer at this point.
If you want to look at a place that is comparable to (parts of) the US that manages to do things about 3-4x cheaper, look at Australia. They seem to have stumbled on something that works ridiculously well. You can get a quote and stuff installed in something like a few weeks at most. It's done right and efficiently without a lot of bullshit.
Other places (like the EU and especially the US) have regulatory problems around anything to do with energy. This is mostly about ass coverage resulting in a lot of pressure for certification, related fees, grid operators insisting on a lot of overhead, building codes requiring a lot of faffing about for the business of wiring together what is essentially plug and play stuff, etc.
If you have an off grid shed, providing power to it is cheap and easy because you have none of that. You buy the hardware on amazon or wherever. It arrives, you wire it up. Job done. And if you are smart you might let a qualified electrician do it right for you or at least check your work (so your shed doesn't burn down and nobody dies from electrical shocks). But fundamentally it's not that hard and this stuff is mostly pretty safe and easy to work with. Especially compared to the things people burn down their sheds with traditionally (e.g. generators).
There's a lot of optimization potential here and most of that is completely non technical.
Self-installable plug-in solar is coming: https://www.energysage.com/news/plug-in-balcony-solar-panels...
Residential solar in the US is very expensive, $3-4/watt versus utility scale closer to $1/watt. The cheapest residential solar options are community solar if your state and utility supports it, or a ground mount system.
The biggest cost components are sales and marketing expenses and similar soft costs. Some of this can be driven down if you collectively buy through something like https://solarunitedneighbors.org/
(have installed 100kw+ of residential solar, ama)
From what I understand, the going price is AU$5K in Australia. (USD3500). A small portion of that is scale since solar roof is far more common in Australia, but most of it is "doing something incorrectly", as you suspect.
Distributed solar is cute and it sometimes benefits some people but it is pointless for national policy to pursue it. As you pointed out, the cost structure of small distributed solar is dominated by office overhead, sales, management, insurance, litigation, etc etc.
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From what I've heard from people who've done deep dives, most solar installers in the US are essentially financing scams. The component costs have come way down, it's still essentially screwing things into the roof + a few hours from an electrician.
The real money is convincing marks to take the financing for 20+ years.