The cost of high-efficiency solar panels is generally higher compared to lower-efficiency panels, but they can yield greater long-term savings due to their superior electricity production.
Cost Comparison
- High-efficiency panels (efficiency above 22%) typically cost around $2.49 to $3.05 per watt, with some top models averaging about $3.05/W, whereas lower-efficiency panels tend to be cheaper on a per-watt basis.
- For example, monocrystalline panels, which are usually more efficient (around 17% to 22%), cost roughly $1 to $1.50 per watt, while polycrystalline panels with lower efficiency (15% to 17%) cost between $0.90 and $1 per watt.
- A typical residential solar panel installation (around 11 kW) averages $2.56 per watt before incentives, translating to about $20,552 after federal tax credits in 2025; however, the specific cost varies based on panel efficiency, system size, and other factors.
Efficiency vs. Cost Benefits
- High-efficiency panels convert a greater percentage of sunlight into electricity, requiring fewer panels to meet the same energy needs. This is especially valuable when roof space is limited.
- Although the upfront cost of high-efficiency panels is higher, they generate more electricity over their lifespan, which can lead to larger electric bill savings and higher net savings over 25 years.
- For instance, a system using Maxeon’s 440-watt panels at 22.8% efficiency (costing about $18,788 after tax credits) can produce 9,680 kWh annually and save about $99,703 in 25 years, yielding a net savings of $80,915.
- A system with lower efficiency panels (21%) costing $14,515 after credits would produce less energy (8,910 kWh annually) and yield $91,772 savings over 25 years, with $77,257 net savings.
- This example shows the higher upfront cost of efficient panels can be offset by greater energy production and savings, with an additional net gain of approximately $3,658 over 25 years.
Summary Table
| Panel Efficiency | Cost per Watt (Approx.) | Typical Efficiency Range | Notes |
|---|---|---|---|
| High-efficiency | $2.49 – $3.05 | 22% and above | Higher upfront cost, more savings long-term |
| Mid-efficiency | ~$1 – $1.50 | 17% – 22% (Monocrystalline) | Standard residential panels |
| Lower-efficiency | $0.90 – $1 | 15% – 17% (Polycrystalline) | Less expensive, less efficient |
Conclusion
High-efficiency solar panels cost more upfront compared to lower-efficiency options but provide greater electricity output per panel and higher savings over time, making them a better value especially when roof space is limited or maximizing energy production is a priority. The decision balances upfront budget with long-term savings and installation constraints.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-cost-of-high-efficiency-solar-panels-compare-to-lower-efficiency-ones/
