Should we wait for better solar technology?

Some concerned citizens are inquiring whether they should wait for better technology before making the commitment to solar power. Some believe that technological advances will make solar panels less expensive and more efficient. This is certainly true considering current projections, but solar panel prices are falling despite tariffs being placed on Chinese solar panels. So the wisest policy is probably to install solar now and start saving on your utility bills as soon as possible. The other motivating factor for some citizens is knowing they will be generating their own clean energy, which gives them some peace of mind.

Why you should consider installing solar now

Let’s use the following example: a family owns an average-sized home in Southern California and uses a slightly above average amount of electricity for a bill of $300 every month. For them, they will probably be looking to install about 20 solar panels for a 5kW rooftop system, in order to completely offset their electricity usage with solar “juice.” In today’s residential solar market average of $3.00/watt, this will cost approximately $15,000 total and $10,500 after the 30% Federal Investment Tax Credit (ITC).

What if I wait to install solar?

In order to determine the future price of home solar, many use the Department of Energy’s Sunshot Initiative goal of $1.60/watt in 2020. This very aggressive target would mean a 5kW system would cost $5,600 after the federal solar tax credit. That’s a $4,900 difference from the 2017 net price. But this family would also still be paying their utility bill every month for the next 32 months. By deciding to go solar now, the monthly savings would be approximately $285 every month, after subtracting the utility bill that remains for ancillary costs. For that 32 month period, the family would save $9,120 by going solar today which is almost double the savings than if they chose to wait until 2020. Combined with the less tangible benefit of immediately reducing your home’s use of fossil fuels, going solar now instead of waiting is a wise choice.
 
Will solar panels be more efficient in the future?

Other common questions that are related to the cost of solar is panel efficiency and technological advances in the near future. Some homeowners say that they would prefer to wait until solar panel efficiencies are higher and the technologies have proven themselves for a longer period of time before they install their own system. These are valid questions and not always easy to answer. Generally speaking, the more efficient a panel is, the more energy will be produced and fewer panels will be needed, potentially saving on total system cost.

There has never been a better time to install a solar energy system!

Solar power is here to stay, and the sooner you explore how much you can save, the sooner you can enjoy the benefits of residential solar power. Go to HahaSmart.com and try our price checker tool. It tells you how much solar power you need, and how much you can save.

Please visit our solar blog to find out more about the benefits of going solar.