Solar Costs Keep Going Down

The prices of solar systems keep falling, with the last two decades seeing the most significant nose dive. Since 2010 alone, the cost of installed solar has fallen 70 percent. You may be wondering how that is possible, and what will become of the economy of the future solar market?

Solar prices have significantly dropped during the last 20 years. Over the first wave of the solar revolution, 1998-2009, solar installations fell by approximately 30 percent! In the previous ten years, we have seen an astonishing 70 percent price drop.  

In today's market, producing a new utility-scale solar plant is notably less costly than developing a new fossil fuel-burning power plant of equal measure.

Why are prices continuing to drop?

New photovoltaic (PV) technology and panel design are game changers. Modern manufacturing techniques have been a significant motivation for the decline in solar prices. The last 20 years have given us massive efficiencies in all sectors of industry, whereas the supply side costs have greatly diminished. These modifications allow companies during development to save money and pass those savings on in the form of lower price.

Solar price drops happen all over the world.

Drops in production expenses have led to cheaper, more affordable panels. China is becoming a solar powerhouse, becoming one of the top manufacturers of solar energy.

Chinese solar panel producers gain in many ways from ample government grants, but also labor costs are held at a meager rate. In fact, the average wage in China is approximately $3.60 per hour.  This rate compared to the average hourly wage in the U.S. of roughly $21 per hour, we can see being part of a global market has its advantages. Cheaper means of production, including those of labor, is indicative of the steadily diminishing global solar costs.  

Government incentives lower costs even more.

The United States and other countries around the world have initiated many government-funded financial relief systems for solar panel users and developers.The SunShot Initiative began in 2011, created by the Solar Energy Technologies Office (SETO) at the U.S. Department of Energy. It was an endeavor intended toward making solar energy competitive with traditional electricity sources, without subsidies, by 2020. To that end, SETO worked to streamline permitting processes, co-operated with associates in production and research labs, and flowed millions into upgrading solar cell technology and construction methods.

Federal, state, and local financial incentives like the US federal government’s renewable energy investment tax credit (ITC) can help homeowners to claim a tax credit equal to 30 percent of their solar power arrangement. Therefore, a $20,000 system would pass to you a $6,000 tax credit.

Will prices continue to plummet?

If all indications remain, we should expect to see continued price drops. Despite current trade disruptions, the global economies are continually promoting renewable energies, and solar is one of the most easily individually accessible means of trending our societies toward an ecologically sustainable future. If you’re thinking of going solar, these dropping costs don’t mean you should wait. The renewable energy investment tax credit is currently at 30 percent, but it is set to decline to 26 percent in 2020, then 22 percent in 2021. By 2022, it will be gone completely.

Interested in investing your own money into solar and making the change towards a future of renewable and green energy? Check out the HaHaSmart blog, which is updated daily with new tips and tricks to getting you in on the future of solar energy. We’ll help you compare prices and keep costs down as you begin to make your trek into the solar industry.

HahaSmart Blog - More Solar Tips and Guide
HahaSmart News - Stay Informed
Your Solar Incentives - See Credits and Incentives in Your Area
Check Your Home's Solar Price - See How Much You Save
Register Now - Unlock The Lowest Solar Prices in Your Area