Installation costs refer to the expenses incurred when setting up a new system, equipment, or service. These costs can include labor fees, materials, and any necessary permits. For example, when installing a solar panel system, costs may cover the installation crew's wages and the mounting hardware. These costs can vary widely based on the complexity of the installation and the type of equipment involved. For instance, installing a home security system may be less expensive than setting up a commercial HVAC system due to differences in scale and requirements. Understanding these costs is essential for budgeting and planning.