There is no denying that the initial solar installation cost is on the higher side. That is one of the prime disadvantages of solar energy. However, the lifespan of installation is estimated to be a minimum of years. Most manufacturers offer a warranty for this period, making solar power a viable long-term investment.
Like in the case of any long-term investment, the profit-loss calculation needs to be done on a long-term basis. By installing a solar system, it is possible to save money on electrical bills over a long period.
This saved money will eventually pay for the system itself. The time taken to recoup your initial investment is known as the payback period. Every watt of energy produced after the payback period is free of cost and the profit made on the investment. Much research and development are happening to improve efficiency and bring down the cost of solar electricity so that more people and governments embrace it. At present this is also adding to the cost of new installations.
With the rising prices of oil and natural gas and the falling costs of solar power installation for homes , the future looks bright for solar power. Solar energy is expensive when considered as a short-term investment. The tax credits and other incentives offered makes it a profitable option in the long run. When it comes to the cost of energy from new power plants, onshore wind and solar are now the cheapest sources—costing less than gas, geothermal, coal, or nuclear.
Solar, in particular, has cheapened at a blistering pace. Just 10 years ago, it was the most expensive option for building a new energy development. Since then, that cost has dropped by 90 percent, according to data from the Levelized Cost of Energy Report and as highlighted recently by Our World in Data.
Utility-scale solar arrays are now the least costly option to build and operate. Wind power has also shown a dramatic decline—the lifetime costs of new wind farms dropped by 71 percent in the last decade. The cost of building coal plants stayed relatively stable over the decade. Solar became cheap due to forces called learning curves and virtuous cycles, the article describes. Harnessing the power of the sun used to be so expensive that it was only used for satellites.
As the cost further declined due to technology improvements and the rise of economies of scale, solar was able to eventually debut as a viable general-purpose energy source. Since , each doubling of solar capacity has led to a In coal plants, supplying the coal accounts for about 40 percent of total expenses.
Sunshine and wind are free, which allows the costs of tapping into their power to decline sharply as technology improves and the industry grows. In , 72 percent of new energy capacity came from renewable sources and global renewable power capacity has more than tripled in the last 20 years.
In the United States, renewable power has been ramping up, too. In other words, your home is worth more and it has smaller power bills, but your property taxes stay the same! Depending on local regulations, it may be possible to make money from your solar panels.
Consider that panels are only productive during the day, and most of their energy output occurs in the hours around noon. On the other hand, homes consume energy during the day and night.
However, if the local utility company offers net metering, you can become a small-scale electricity supplier. If solar panels will pay back what you spent on them within a reasonable timeframe, they can be considered a solid investment. However, the payback period can be less than 5 years under favorable conditions. Using high-quality products is important to get the best results with solar power, but also make sure you check all the solar financial information available.
Ideally, a solar panel system should be properly installed and covered by warranties, but it should also offer an attractive return for every dollar spent. For homeowners with access to low-interest loans, it may be possible to go solar with zero net cost. If the annual savings are higher than the loan payments, your solar power system can purchase itself.
This means you can cover part of the project cost with money that would have otherwise been paid in federal taxes.
Depending on where you live, there may be additional incentives such as state tax credits, solar power rebates, or renewable energy credits. Solar panel systems seem expensive if you only focus on their sales price. However, their operation and maintenance costs are very low and they have a long service life. The upfront cost of solar panels is normally recovered multiple times in the form of power bill savings.
We hope you liked this article. Please rate it or leave us a comment. Average rating 4. Vote count: No votes so far! Point is, these installers charge TWICE the cost of the components, and that is being very generous with pricing.
Why does the install cost so much for a single days labor. It appears that as long as people are willing to pay they exchange your electric bill for a slightly lower pv unit , we will continue to get ripped off. I am having They are getting a decent profit and I will keep Enerysage informed of my install and production, and of course, problems.
I chose high quality components so the install will be the interesting factor. Our US pricing differential is rooted in one thing only…. Installers pay thousands to their sales people and 3rd party lead generators. EnergySage is looking to reduce that sales cost, but in most instances ends up being used as simply a lead generator which ads more cost on top of internal sales at the installer level.
Tesla is making a legitimate effort to limit sales cost by ending door to door sales and taking operations online. Your email address will not be published.
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