Prices For Solar Have Dropped Over Time

In 1977, we looked back one year to the bi-centennial.  Also, that year, solar panels cost $76.67 per watt. But the subsequent year, they fell to less than $60 per watt. The year following that, they hit $40 per watt. By 1980, the panel prices had slipped to merely $30 per watt, and the downward trend has only remained since. Today, the average solar panel fetches less than $1 per watt. The higher affordability of solar panels is one of the significant causes why it’s now affordable than ever to go solar.

A contemporary report from the Solar Energy Industries Association determined that from 2012 to 2017, the price of solar declined 55 percent, including a dramatic 19 percent reduction between the first quarter of 2016 and the first quarter of 2017 only.

TM Research expects solar power to proceed to drop in price by about 4.4 percent annually through 2022. The difficulty with waiting for solar to drop more is that the 30% tax credit is listed to be phased out while the utility power prices will continue to increase. Given these two factors solely, now is the appropriate time to go solar.

Investigators have credited the price drops to reductions in “soft costs” like marketing, labor, and system design, as well as streamlined allowing and inspection processes.

Improvements 

Improvements in solar panel efficiency have also made solar power more affordable. Most solar panels are only 15 to 16 percent efficient, so even a small growth in that number can lead to significant increases in average energy generation. Some high-efficiency panels can now obtain efficiencies of over 21 percent.

Solar energy costs have also declined thanks to increased panel durability. Over time, solar panels generate less power. The rate at which their output drops is known as the degradation rate, and it averages approximately 0.8 percent per year. Newer panels, however, have consistently lower degeneration rates, some as low as 0.2 percent annually. This increases the lifetime of the panels and makes them more cost-effective during the long term.

Higher Demand

Higher demand has also forced costs down. In 2000, the world had a collective installed capacity of about 4 gigawatts of solar power and the International Energy Agency (IEA) recommended in 2002 that by 2020, the global installed capacity of solar energy would be approximately 10 gigawatts. The world has installed 227 gigawatts of solar power by this year. Once you understand the size of the system that you need, the next step to figuring out what solar will fetch per watt in your state. It’s important to always get solar costs in per watt so that you can compare across different system sizes. There is some variability in cost per watt across different states. In 2017, the average price per watt across most states is roughly $3.00-$3.70.

Prices For Solar Have Dropped Over Time

Curious about solar hard costs vs. soft costs near you, and how that might affect your own solar panel pricing? We here at HahaSmart you will have a look at what we can offer you on the cost of solar panels and cost of solar installations. We will strive to find you the best prices available. Follow the solar experts. Try our price checker tool. It tells you how much solar power you need and how much you can save on your energy bills each month. Please visit our solar blog to find out more about the benefits of going solar.