Solar panels are costly because of raw material expenses, advanced technology needs, and labor costs. Skilled labor and tech increase production costs. While solar technology itself has become dramatically cheaper over the past decade, the cost of installing solar panels in the U. In fact, Americans often pay more than double what homeowners in countries like Germany or Australia spend for the same system. So, what's. Solar panels can cut your electricity costs by 70% or more. Most systems cost at least $10,000 to $30,000. The materials, like silicon and aluminum, play a substantial role.