Upgrading Your Roof: The Cost Factors and Market Dynamics of Solar Roof Tiles

By 2030, more than 100 million households will rely on rooftop solar power, according to estimates from the International Energy Agency. If you’re one of the homeowners interested in shrinking your carbon footprint and your energy costs, you are no longer limited to solar panels to help power your home, though.

- Can solar panels save you money?

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- There is now another innovative option: the entire solar roof.

Solar roofs consist of tiles with monocrystalline silicon or cadmium telluride solar cells that can be installed on top of existing tiles or separately. As far as roofs are concerned, solar roof tiles are not only more durable than ordinary tiles, but they also have all the functions of ordinary tiles (protecting your home from the effects of bad weather). They also have the ability to collect solar energy like solar panels, even integrating the solar cells directly into the solar roof tile. Moreover, they have a smoother and more seamless appearance than solar panels. "It looks very different," says Cassie Morien, Director of Strategy at Modernize Home Services, a home improvement and contractor platform. The shingles "look sexier on your roof."

But the look isn't cheap. Should you consider replacing your roof with solar roof tiles? Or, if you are building a new home, would you consider installing a solar roof first? Here are some valuable considerations for you.

- What are solar roof tiles?

If you've never heard of solar roof tile, you're not alone. According to a study by Modernize in October 2023, which surveyed more than 1,100 homeowners in the United States, 38% were unfamiliar with them, despite their history of more than ten years.

"Solar roof tile, also known as solar roofing, solar tiles, or solar shingles, are shingle-shaped panels that are permanently installed on your home's roof," said Mallory Micetich, a home expert from the home improvement website Angi. "These panels are much smaller than traditional solar panels, but they operate similarly, with a photovoltaic building integrated system, inverter and electrical circuitry that allows solar energy to be absorbed and flow into your home through wires."

The amount of energy produced by each roof tile varies from 13 to 80 watts, depending on the brand. The average size of a solar tile is about 12 inches wide by 86 inches long. A standard-sized roof requires about 350 solar roof tiles. The weight of the roof tile per square foot is about 13 pounds, so most roofs can withstand this without additional reinforcement.

Solar Energy Survey Insights

In October 2023, Modernize Home Services conducted a survey on renewable energy options, particularly solar systems, among 1,124 homeowners across the United States. The survey results include:

· 38% are unfamiliar with the concept of solar roof tiles.

· 59% do not know the difference between traditional solar panels and solar roof tiles.

· 52% are unaware of the cost differences between solar roof tiles and traditional solar panels.

· 37% consider cost-effectiveness as the main consideration when thinking about renewable energy options, followed by energy efficiency (19%) and durability/lifespan (16%).

· 29% believe that high initial cost is their main concern or hesitation about installing solar; efficiency uncertainty (14%) and maintenance challenges (13%) are other factors.

· 44% may be willing to invest more money in a solar system to increase property value and aesthetics.

- The pros and cons of solar roof tiles

When you are weighing up the various options, it's important to consider the pros and cons of solar roof tiles.

Pros of solar roof tiles

· Aesthetics: Solar roof tiles can blend in with the roof, looking more visually appealing.

· Savings: Using solar energy reduces your energy bills and your impact on the environment.

· Strength: Solar roof tiles cover certain wind speeds - providing additional peace of mind for investing in this work. Additionally, there are warranties that guarantee a certain level of energy output.

Cons of solar roof tiles

· High costs: Solar roof tiles require a significant upfront investment, and they are much more expensive than a standard roof or solar panels. In some cases, you also have to pay for the removal of the old roof if you want a complete overhaul.

· Limited Options: Depending on where you live, you may find it difficult to find certified roofers experienced with this new technology.

· Lower Utility/Efficiency: Since solar roof tiles are part of the roof itself, they cannot be installed at certain angles or positions to maximize sunlight absorption.

- What Does It Cost to Install Solar Roof Tiles?

According to Angi, the cost of solar roof tiles is between $21 and $25 per square foot ($2,100 to $2,600 per roof area), with an average total cost of $55,000. As estimated by Modernize, this is significantly higher than a typical solar panel job, which has an average price of $16,500.

When it comes to roof tiles, there are a range of factors that can affect the overall cost, but if your roof has some steep pitches — anything over the standard 6:12 ratio — expect to pay more. Additionally, your location plays a key role. Angi's data shows that the average installation cost in California is $70,000 per job, while homeowners in Florida and Michigan pay only half of that.

No matter where you live, your budget will increase significantly compared to a standard roof, which usually ranges from $5,600 to $12,000. Although the price increase is substantial, installing solar shingles (or solar panels) can now reduce the federal tax bill. The Inflation Reduction Act allows for a dollar-for-dollar federal tax credit for up to 30% of solar installation costs until 2032.

Furthermore: The price of solar roof tiles has been decreasing since their introduction and is likely to continue to fall, especially if more manufacturers and installers enter the market.

Solar roof tiles represent a cutting-edge solution for homeowners looking to embrace renewable energy while enhancing their property’s aesthetics. While the initial investment is high, the long-term benefits of reduced energy costs, increased property value, and environmental impact make solar shingles an attractive option. As more manufacturers and installers enter the market, prices are expected to drop, making solar roof tiles a viable option for more homeowners.