Market trend: Overestimation of the cost of installing solar
Many of the people we speak with on our sales events or otherwise overestimate the cost of installing solar. According to a recent Harris interactive poll public perception is still a major obstacle to adding more residential solar energy to the grid.
This is understandable, as most people live busy lives and do not always have time to follow the news on every subject. However, at Belmont Solar, our passion for educating and serving our valued customers obligates us to keep up on all the latest developments in both the technology and the marketplace. Those developments are many and exciting! The good news can be simply stated. Over the past decade, solar panel efficiency has increased while the price of installed solar systems has decreased, dramatically.
Solar panel efficiency refers to how much electric power you will get from an hour of sunlight. The most important factor is the angle at which the sunlight strikes the panel. The amount of electric power being created changes as the sun changes position in the sky over the course of the day. Although we have no control over the sun’s position, we do have control over the solar array’s design. That is where the invaluable experience and proven expertise of the Belmont Solar team comes into play.
Another factor is the continuing improvement in technology. The chart below illustrates the great strides in efficiency in just the last few years. Increasing demand helps drive and finance advanced research and improves manufacturers’ economy of scale. These factors have had a huge impact on the cost of installing solar, decreasing your initial investment and making it pay off for you much more quickly.
The Chinese manufacturing subsidies that have been in the news lately have kept the prices of panels at an all-time low. With efficiency rising and prices falling, the number of solar installations keeps increasing, as more and more homeowners discover what a smart and affordable investment this is.
The average system size for a residential application is about 6 KW. For this amount of power the average gross cost has fallen from $50,000 to just $18,000 in about the past decade. For 2020 the federal tax credit is at 26%. Subtract this from the purchase price, and you’re looking at approximately $14,000 for a residential solar system that can cover most of your electricity needs.
Solar is a financially wise investment. The returns are steady and not influenced by market changes. Solar’s ability to avoid the politics and price volatility that increasingly characterize fossil fuel markets is a mayor advantage. For more great benefits, please see the Online Solar Calculator page in our Learning Center.
If you own your own home, you could greatly benefit from making the move to solar energy. You can begin investigating the possibilities by contacting Belmont Solar for a FREE consultation.
- Sources: https://newscenter.lbl.gov/2016/08/24/median-installed-price-solar-united-states-fell-5-12-2015/