Initiatives Are Out There For Lowering Your Solar Costs

Good news is out there.  I heard robots are getting cheaper.  I always wanted a robot.  There has also been some pretty cool news in the solar panel industry, and it's pretty amazing.  The solar industry has met the 2020 utility-scale solar price target set by the Energy Department's SunShot Initiative, three years early.

DOE NREL ASAP

The DOE's National Renewable Energy Laboratory (NREL) published new research today that reveals the average price of utility-scale solar is now under $1 per watt and beneath 6 cents per kilowatt-hour.

That’s higher than the record-breaking project bids we’ve observed in the U.S. and abroad in recent years. The DOE figures for equalized the cost of electricity (LCOE) do not include subsidies -- such as the federal Investment Tax Credit and theses numbers are founded on the common environment in Kansas City, Missouri. (Note: GTM documented the sub-$1 per watt milestone earlier this year, but the administration is using its metrics.)

“Our mission is to make solar affordable for all Americans, and so our goals are defined for average U.S. climates. Let's focus on Kansas City for the great example,” said Becca Jones-Albertus, acting deputy director of the SunShot Initiative. “Hitting a 6 cents per kilowatt-hour target for Kansas is a more significant metric than hitting 6 cents in sunnier parts of the country.”

Solar Tech

Technology advancements have been a primary driver of the price declines since 2011. Solar module prices have seen a particularly dramatic cost reducing in recent years. That's due in part to efficiency improvements as a result of material nature and innovative cell and module designs, as well as the development of diamond wafer sawing, which dramatically decreases material loss in the making of silicon wafers. The NREL report found that module prices also declined considerably over the past year due to an oversupply. 

So, the Suniva/SolarWorld trade experience could have a meaningful impact on the economics of solar in the U.S. and could set the SunShot goals beyond reach again. According to DOE researchers, the tariff requested on introduced solar modules would have a 2-2.5 cent impact on the LCOE for solar. If solar panel systems costs increase from approximately 35 cents today to 78 cents under a new tariff scenario, the cost of a utility-scale solar system will increase from approximately $1 per watt to $1.38 per watt. 

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.