When you're considering solar energy for your home or business, it's tempting to focus on the cost per watt as the primary metric to compare different solar installation proposals. After all, this figure is often highlighted in quotes, making it seem like the most straightforward way to gauge cost-effectiveness. However, relying solely on cost per watt can be misleading and may not lead to the best long-term investment.
Here’s why you should look beyond cost per watt when evaluating solar proposals in New Mexico:
1. Quality of Solar Components Matters.
In New Mexico’s sunny yet challenging desert climate, the quality of solar panels and inverters is crucial for longevity. A lower cost per watt may indicate the use of cheaper, lower-quality components that are less efficient or less durable. High-quality panels and inverters, while potentially more expensive upfront, often perform better and last longer, providing greater value over the system's lifetime.
2. System Design and Installation Quality Are Key.
New Mexico’s diverse building landscapes—from adobe or stucco homes with multiple levels and flat roofing material, to pitched tile roofs—demand a well-thought-out system design. Factors like roof angle, potential shading, and optimal panel placement play a significant role in energy production. A slightly higher cost per watt can be justified if the system is designed and installed to maximize energy output, especially during peak sun hours.
3. Long-Term Performance Over Initial Cost.
While cost per watt gives you an idea of upfront costs, it doesn’t account for the system’s long-term performance. A system that costs more per watt but is designed to optimize energy production will generate more electricity over its lifetime, leading to greater savings. When choosing solar panels, it’s important to consider the degradation rate alongside other factors like cost and efficiency. A panel with a lower degradation rate may cost more upfront but could offer better value and performance in the long run. Think of degradation like the wear and tear that happens to your car or a smartphone battery. Just as your phone battery might not hold a charge as well after a few years, solar panels slowly become less efficient at converting sunlight into electricity, and have different ratings for their warrantied degradation.
Let’s say you have two different solar panel options:
Panel A: Degrades at 0.25% per year.
Panel B: Degrades at 0.5% per year.
Here’s how that would look over time:
Year 10:
- Panel A would still produce about 97.5% of its original capacity.
- Panel B would produce about 95% of its original capacity.
Year 25:
- Panel A would produce around 94.2% of its original capacity.
- Panel B would produce around 87.5% of its original capacity.
Panel B may not cover your full energy needs down the road, and will have produced less energy over it's lifetime.
4. Comprehensive Warranties and Support.
Solar systems are long-term investments, and the level of after-sales support (service & maintenance) and warranty coverage is critical. Proposals with a lower cost per watt might offer limited warranties or inadequate customer service, leaving you vulnerable to unexpected costs in the future. It's essential to choose a provider that offers robust warranties and reliable support, ensuring peace of mind. In addition to manufacturer and workmanship warranties, Positive Energy solar systems include an industry leading 30-year third-party warranty coverage through SolarInsure.
5. The Importance of Choosing a Stable, Bankable Company.
When evaluating solar companies, consider their stability and reputation. A company that pays a living wage and treats its employees well is more likely to deliver high-quality service and remain in business long enough to honor warranties and provide ongoing support. These companies typically invest in their workforce and operation, leading to better installation quality and customer service. Locally-focused operations and roots in the community can also help differentiate from fly-by-nights that are quick to move or shut down as quickly as they appeared. Choosing a stable, bankable company ensures that you’re not just getting a good deal today but also securing long-term reliability and value.
6. Impact of Incentives and Financing Costs.
In New Mexico, various incentives, such as the federal solar tax credit and local rebates, can significantly reduce the overall cost of your solar system. Positive Energy has dedicated personnel who file the New Mexico solar tax credit application on your behalf, so that you don't have to navigate the paperwork and red-tape. This level of service is not easily accounted for when comparing cost per watt. Financing options and rates also play a role in the true cost of going solar. The cost per watt doesn’t factor in these financial aspects, which can dramatically affect the overall affordability, value, and return on investment of your solar energy system.
Conclusion: A Holistic Approach to Solar in New Mexico.
When evaluating solar installation costs, it's crucial to take a holistic approach. Instead of focusing solely on cost per watt, consider the quality of components, system design, energy yield, warranties, the impact of financing and incentives, the customer experience and support, and (arguably the most important) the quality and reliability of the solar installation company. By doing so, you’ll ensure that your solar investment delivers the best value and performance over the long term.
Want to discuss your solar project with Positive Energy? Contact us today.