How Much Does Solar Energy Cost Per KWH: Is It Even Worth It?

How Much Does Solar Energy Cost Per KWH_ Is It Even Worth It

Will you use your cash when purchasing and installing the system, or will financing be required?

If you are the P.V. system’s operator, what financial options are available, and what kind of returns can you anticipate?

These and other similar inquiries must be resolved.

On the other hand, if you’re interested in finding out how much a solar energy system will cost for your home, you can get a free and non-binding estimate right here.

Which expenses should be anticipated while installing a solar system?

The value of investing in a P.V. system depends on the likelihood that the initial outlay will be recovered within a reasonable time frame.

About 30 cents per kilowatt-hour is the going rate for power right now.

Researchers at the Fraunhofer Institute for Solar Energy Systems found that in the sunnier southern regions of Germany, the cost to generate one kilowatt-hour of solar power ranges from 5.81 cents to 8.04 cents, whereas in the cloudier northern areas, the price ranges from 7.96 cents to 11.01 cents (as of 2021).

This study found that the cost of energy generation for small P.V. systems with battery storage went from 8.33 cents/kWh to 19.72 cents/kWh, which is still much less than the cost of conventional power.

The sudden price rise may have rendered these “official” numbers less reliable. The current energy price is 40 cents per kWh or more, so even if production costs are more like $12 or $15 per kWh, they are still significantly cheaper than the market.

The initial outlay for a photovoltaic system includes the purchase of modules, labour for installation, and any necessary extras like scaffolding.

It’s also possible that you’ll need to improve your electrical system or replace your home’s wiring.

These expenses aren’t accounted for by fixed-price quotes since their true nature isn’t known until a site is inspected.

The net investment expenses for cost-effective small P.V. systems are projected to be between 2,200 and 2,800 euros per kWp if one disregards these unknowns (5 to 15 kWp).

The price of a 10 kWp system is around 22,000 to 28,000 euros, not including other expenses like scaffolding, electrical installation, or structural precautions.

Tax breaks and other government aid are possible for price reductions.

The investment will be recouped in around 10 years due to the savings on power bills and the feed-in tariff.

A photovoltaic system has a minimum service life of 20 years. All glass modules from Solarwatt are backed by a 30-year warranty on durability and performance.

Determine how much money a solar system will actually cost you.

The installation of a solar system is an independent venture.

It is not easy to make a rule-of-thumb estimate of the system’s expenses and yield. We can provide a no-obligation, cost-free estimate of both upon request. Fill out the form with the pertinent information for your home, and a Solarwatt representative will contact you shortly.

Practical Methods for Funding Your First Solar Systems

The investment cannot be safeguarded without long-term finance. In light of this, it is essential to determine if loans or subsidies are applicable for financing the P.V. system even before making the initial purchase.

Make sure you have all the details on the money front.

Funding a solar array may be done in several ways, including using personal savings, taking out a loan, or applying for government grants and rebates for solar energy.

Anyone considering a solar loan would be wise to shop around for the best deal by comparing the terms offered by several financial institutions.

Some things to think about are:

Methods of Settlement

The Reconstruction Loan Corporation, the Environmental Bank, and Schwäbisch-Hall are examples of institutions offering photovoltaic financing.

Loans for solar panels were previously only available from national financial institutions, but now local savings banks and building societies do so.

There is a plethora of options available, each with its own set of terms and conditions, so if you are interested, you should seek out thorough guidance on the expenses of a solar system or immediately utilize our financing service.

You should know that nearly no financial institution offers solar loans that include V.A.T. coverage for solar panels. Only the solar system costs are included in the loan amount (net investment costs). We haven’t included the assembly price, so add 20% to your budget.

Think about potential sources of funding

A feed-in tariff is the most well-known kind of solar subsidy, the amount of which is set by the Renewable Energy Sources Act.

When photovoltaic system owners send their extra solar energy into the public electricity grid, the network operators pay them a feed-in tariff. Of course, you won’t get paid until the system is up and running.

Special P.V. loans and subsidies are available if you do not have enough equity or do not wish to commit the cash.

Subsidies for installing solar panels are available from the federal government, several states, and even some local governments.

Low-interest loans, grants, and tax depreciation alternatives may be available for new construction or system expansion depending on the circumstances, solar system, and expected expenses.

The financial investment and return on a solar energy system

As was previously noted, a P.V. system requires a significant financial outlay of several thousand euros.

The installation cost is unaffected by whether the installer uses high-end or budget modules.

Consequently, the only way for users to save expenses is to purchase cheaper modules. But the modules are the heart of the photovoltaic system, the source of the solar energy used to power the home.

If you want to ensure steady returns over the long term, it makes financial sense to put more money into the modules.

The impact of your choice for long-lasting products is demonstrated by contrasting the SOLARWATT glass-glass modules with the glass-foil modules.

Longevity and nearly constant performance are two advantages of glass-glass modules, to the tune of increased productivity.

At the end of the guaranteed service period, you will have saved 30%. Reduced prices per kilowatt-hour of solar power generated savings of roughly 15%.

These numbers are for a hypothetical 10 kW system installed south of Munich at a 30° roof pitch and include the additional time added to the linear performance guarantee for glass-glass modules.

An extra 75,000 kilowatt hours produced is worth about €21,000.

(Estimated value using 2017 information on power prices from the European Commission)

Is Solar System Worth The Investment? 

When would it be beneficial to install a solar system?

The sun and planets can’t be placed in just any old place.

And first, no-obligation consultation with a photovoltaics expert or a review of the solar register will reveal the roof’s potential for producing power.

You should consider installing a P.V. system if the enabling circumstances are favorable, for example:

  • One of your goals is to permanently lower your electricity bill.
  • You want to be free from the shackles of your power company.
  • The environment is essential to you, and you want to keep it that way.
  • You want to make a wise financial commitment
  • One of your goals is probably to raise the asking price of your home.
  • Whether or not a homeowner uses their P.V. system’s output for their own needs is a determining factor in the system’s financial viability.

The current feed-in tariff is less than a third of the price of power. Thus it makes sense to maximize self-consumption.

Here, an intelligent controller like the Solarwatt Manager or a battery storage device like our Battery flex might be helpful.

What do you get for your money when investing in P.V. systems with a high return rate?

How Much Does Solar Energy Cost Per KWH_ Is It Even Worth It

Returns that solar system owners may expect are published by several different sources, and these numbers might vary widely.

  • You can generally count on a rising rate of return. Here are some of the causes for this:
    The declining cost of technology
  • a rise in the cost of power
  • the opportunity, through smart controls and/or battery storage, to use a sizable portion of the power on your own account.

Fraunhofer I.S.E. estimates a 5% return on equity for small P.V. systems, depending on the power price and the amount of capital invested (page 11 of the study mentioned above).

It’s worth noting that there are undoubtedly more lucrative investment options if you’re solely looking for a return.

However, independence and environmental preservation are of utmost importance for most private PV system operators.

It has been established that modest P.V. systems may expect a return of around 5%. The journal “Finanztest” even concludes: “Under perfect conditions, your return can even be in the double digits.” (Finanztest 12/2017).

Photovoltaic systems, in general, are desirable investments due to their relatively high return on investment.

Considerations including system size and equipment, installation and maintenance expenses, and financing terms and conditions are necessary for more accurate estimations. Whether or whether a P.V. system is financially viable for you depends on several factors that can only be determined on a case-by-case basis.


After the solar system has begun operating, several questions emerge, including who is responsible for maintenance, how often maintenance should be performed, and how power generated is billed to the grid operator.

If you want your solar energy system to contribute to the public electricity grid, you’ll need to sign a contract with the grid operator in your area, who will then send you a charge for the compensation.

You can make arrangements with the network operator to get precisely what you’re paying for.

A one-time fee for connecting to the grid and the price of a feed-in meter will be incurred. In addition, please explain what happens to your solar electricity if the electrical system is already at capacity.

We advise signing a maintenance agreement, preferably with the specialized firm that installed the equipment at your business.

Because of his extensive familiarity with the solar system, he can fix any problems immediately.

The contract should also stipulate regular inspections to prevent technical faults from tiredness or wear.

Installers can check your solar system remotely and adjust if you have an intelligent controller installed.

This allows for the detection and resolution of issues with minimal need for physical inspection. You’ll be able to avoid wasting resources, both time and money.

The photovoltaic system might fail or not provide the expected output if subjected to severe weather, such as hail or storm, theft, or a mechanical flaw.

This means that protecting the investment is a must. SOLARWATT provides full coverage, making it a worry-free investment.

Everything in your solar array is protected from theft, weather damage, and yield loss for five years. The best part is that full coverage is included with your solar system by default and requires activation through a website.

Following the first five-year term, a further five-year extension is an option. Our all-inclusive support means you won’t need to purchase separate coverage for your system.


As a homeowner, you should know that installing a P.V. system is a smart financial move. With growing energy prices, the lowest feasible investment and maintenance costs and the highest possible self-consumption guarantee a constant decrease in power expenses and an attractive return.

Joe Siregar

Hi! I'm a mini solar-powered globetrotter. Stressed, blessed, and coffee obsessed.