Small solar panels are often more expensive on a per-watt basis compared to larger solar panels for several reasons.

1. Manufacturing Costs:
   • The manufacturing process for solar panels involves fixed costs associated with equipment, facilities, and labor. These costs are spread over the total production output. In the case of small solar panels, these fixed costs are distributed across a smaller number of watts, making the cost per watt higher.
2. Economies of Scale:
   • Larger solar panels benefit from economies of scale. Mass production of standard-sized or larger solar panels allows manufacturers to achieve cost efficiencies in terms of materials, labor, and equipment. The production cost per watt decreases as the size of the solar panel increases.
3. Materials Costs:
   • While the physical size of small solar panels is smaller, they often require similar high-quality materials as larger panels. This means that the cost of materials per watt can be higher for smaller panels.
4. Labor Costs:
   • Labor costs are a significant component of solar panel manufacturing. Small panels may require similar labor input as larger ones, leading to higher labor costs per watt for smaller panels.
5. Design and Engineering Costs:
   • The design and engineering costs associated with creating a solar panel product are relatively fixed regardless of the panel size. These costs are spread across fewer watts for small panels, contributing to higher costs per watt.
6. Testing and Quality Control:
   • Regardless of the panel size, manufacturers need to conduct testing and quality control procedures to ensure that the panels meet industry standards. These costs, when spread across fewer watts, can increase the cost per watt for small panels.
7. Market Demand:
   • The demand for small solar panels might be less compared to larger panels, and manufacturers may produce them in smaller quantities. Lower production volumes can lead to higher costs due to reduced economies of scale.
8. Specialized Applications:
   • Small solar panels are often used in specialized applications, such as portable devices or custom installations, which may require additional design considerations or adaptations. These specialized features can contribute to increased manufacturing costs.
9. Innovation and Research Costs:
   • Manufacturers may invest in research and development to improve the efficiency and design of small solar panels, and these costs can be distributed across fewer units, raising the cost per watt.
10. Balance of System Costs:
    • The total cost of a solar energy system includes not only the cost of the solar panels but also other components such as inverters, mounting structures, wiring, and installation. For small solar panels, the balance of system costs may be a larger portion of the total system cost.