At Penrith Solar Centre, we believe in providing clear value points for our customers. Solar panel installations can be complex, and pricing varies greatly.
In this article, we will explore the sweet spots and value points that PSC offers, compared to other companies in the industry.
Types of Solar Installation Companies
The solar industry is divided into two types of companies:
- sales companies that use subcontractors for installations,
- and all-in-one solar and battery sales and installation companies like Penrith Solar Centre.
This distinction is crucial because it impacts the cost and value of your solar installation.
Cost of the Subcontractor Model for Solar Panels
- Sales companies often use subcontractors for installations.
- Subcontractors charge between $0.20 to $0.30 per watt.
- For example, a 10kW system might cost about $3,000 in installation fees for the subcontractor alone.
- Additional costs might arise from extra materials like cables or circuit breakers.
Overheads in the Solar Subcontractor Model
- In addition to the subcontractor’s fees, the sales company also has overhead costs.
- These include rent, electricity, salaries, and salespersons’ commissions. In a business like this, the salesperson is usually commission only and it’s usually a lot.
- Typically, these overheads add another $1,500 – 2,500 per job.
- So, for a 10kW system, the total overhead cost is as high as $4,500 – 6,500, excluding any profit.
If you’re interested in learning a bit more about the importance of a good installer for your solar (the most important component of any system, seriously), you might want to check out the following article titled, In-house Installers vs. Subcontractors: Which is Better?
How is PSC Different?
Penrith Solar Centre operates differently. We do not use subcontractors.
Instead, we have in-house installers, which allows us to control costs better and ensure quality. We use a day charge model, which includes all admin and installation costs.
This charge covers our staff, overheads, and operational costs. With this model, you only pay for one company’s overheads, unlike the subcontractor model where you pay for both the sales company and the subcontractor.
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Value Points at PSC
With our in-house installer model that charges a flat fee per day, PSC offers clear value points:
- For systems with 22 to 36 panels (about 9 – 16kW), our pricing is very competitive.
- From 30 to 36 panels (about 13 – 16kW), we are often the cheapest in the market.
If you’re interested in learning a bit more about the process of choosing components for your solar system, you might want to check out the following article titled, How to Shop for a Solar System.
Poor Value Points at PSC
While we have strong value points, we also acknowledge that we have poor value points:
- Systems with 9 to 15 panels (anything less than 6.6kW) are less cost-effective because the same day charge we have for larger installations applies to smaller ones, making these size systems more expensive per watt.
Value Sweet Spot: 30 to 36 Panels
The optimal value for customers lies in the 30 to 36 panel (about 13 – 16kW) range.
- For these systems, the cost per watt is less than a dollar.
- This provides excellent value compared to subcontractor models.
The clear advantage of a system of this size, if you have the roof space for it, is that it will meet your energy needs for some time as they evolve.
Once you add an electric vehicle or two to your household, systems above 13kW start to look really appealing.
If you’re interested in learning why other solar companies recommend a system about half that size, you might want to check out the following article titled, Why Do Companies Sell 6.6kW String Systems with 5kW Inverters?
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Cost Efficiency of Larger Systems
- For larger systems, such as those with 37 to 78 panels (about 16 – 34kW), the pricing changes again for an additional day of labour.
- A jump from 36 to 37 panels involves additional costs, including more labour and materials, resulting in a significant price increase. We do not compromise on quality.
- Additional components include more relays, double the cable to the roof, and a bigger iBoard.
- But the more panels you install, the price drops. This is due to economies of scale.
If you’re interested in learning a bit more about the importance of monitoring and programming your energy, you might want to check out the following article titled, What is Consumption Monitoring?
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Connecting the Watts: PSC Provides Value
Choosing the right solar panel system involves understanding the value points and costs associated with different configurations.
At Penrith Solar Centre, we provide clear and competitive pricing. The size of your system will determine whether we’re the best deal for your unique energy needs and goals. We make sure our customers receive the best value for their investment.
If you’re interested in learning a bit more about shopping for a solar system, you might want to check out the following article titled, 6 Mistakes to Avoid When Buying Solar.
