The advances in photovoltaic technology have pushed solar power harvesting straight into homes. Residential use of the technology has become popular for many reasons—from saving money on increasing energy bills to opting for a more sustainable and environmentally friendly form of energy generation. While solar energy can be a great alternative to traditional power sources, those considering powering their home this way should know the cost of installation, maintenance, and operation of solar panels beforehand.

How solar panels work
Solar panels use photovoltaic cells (PV cells) that convert sunlight into energy through the photoelectric process . The panels themselves are made of silicon or another semiconductor material and covered with a glass casing. The PV cells in the panel absorb sunlight, and the solar energy creates electrical charges that move through the cells. The charges flow through the conductor, generally a metal, to create an electric current, which can be used to power homes, factories, and offices.

Depending on the type of system installed, the energy from this process can be used immediately, fed back into the grid (to reduce utility bills), or stored in batteries for later use.

Cost of solar panel systems
A 3kW PV system, which is sufficient to power the average household in Italy, can cost anywhere between €6,000 to €9,000. A larger system, such as a 6 kW solar panel, can cost anywhere between €7,500 and €15,000, covering components and installation. While this is only an estimation, the true cost of the solar panel system would depend on certain factors.

1. Component cost
The initial price one needs to consider is the upfront purchase price of the panels and associated components such as inverters, mounting systems, and wiring. These costs can vary depending on the brand and quality of the parts. High-efficiency panels and more advanced inverters will come at a premium charge. As a result, buyers can expect to pay an average price of €1,200 to €1,500 per kWp (kilowatt peak) across Europe.

2. Assembly and installation charges
Putting the solar panel system together and installing it requires intensive labour, adding a significant cost to this process . One must factor in an additional 10–25% of the purchase cost here. That said, installation costs may vary depending on the complexity of the project, the structure of the building , roof accessibility, the type of roofing material and additional structural support required to complete the project.

3. Operating costs
The operating costs for solar panels are quite low. That said, one still needs to budget a little extra for regular inspections, cleaning, maintenance, repairs, and potential component replacements over the years. These things typically cost around 1 to 2 % of the initial system price.

4. Storage costs
Investing in battery storage is essential for those who are looking to achieve complete energy independence. The extra electricity generated is stored in these batteries for consumption during low-sunlight periods. The price for these battery storage solutions can vary significantly, depending on the capacity and technology chosen. That being said, one can expect an additional cost of around €500 to €1,000 per kilowatt hour (kWh) of storage capacity, adding €5,000–10,000 to the initial cost of components.

Savings offered by solar energy
While the cost of switching to solar energy may sound high, several state subsidies and tax incentives offered by the government can help bring down the final figure substantially .

One such benefit is offered under the Superbonus 110% scheme. Back when this scheme was implemented, it allowed homeowners to deduct 110% of the cost of solar panel installations and other energy-efficient renovations from their taxes. Currently, the benefits offered under this scheme have been reduced but are still helpful in bringing down the upfront cost of solar panel systems.

Benefits and policies have also been extended to transition industrial processes to solar energy with the Transizione 5.0 Tax Credit scheme. Under this program, fiscal credits cover up to 35% of the cost of solar modules. These credits are awarded through tenders for projects using EU-made modules. These credits can be combined with those awarded for investments in the country’s special economic zones and Simplified Logistics Zones (if there are no overlaps), allowing companies to save more when making the shift .

Tips for minimising the cost
In addition to accessing government subsidies and credits, one can take a few steps to lower the cost of owning and maintaining their photovoltaic system .

1. Compare component models
One must not be in a rush to buy the solar panel system from the first company one finds. Here, it is important to take some time to compare models and inverters available in the market. One must pay close attention to their prices and efficiency and look for user feedback as well . Covering all these bases will allow one to find the best deals on solar system components.

2. Reduce operating costs
One of the best ways to avoid major repair costs on solar panels is by investing in regular maintenance. This involves regular cleaning and servicing to maintain the power generation system’s efficiency. Users can also learn how to maintain the system themselves to reduce maintenance costs.

3. Ensure optimal alignment
The efficiency of solar panels depends on their position and alignment. One must pay special attention at the time of installation to ensure that the system captures the maximum amount of sunlight. This can vary from site to site, depending on the geographical landscape and the architectural considerations in the area.