The Cost of Solar Continues to Drop
Across the country, people are adopting solar energy faster than ever before. Although there are many reasons why, one of the biggest motivators has been the steadily declining cost of solar energy. A solar energy system helps save money on electricity bills, so any drop in the cost will ultimately result in lower overall energy costs.
Global signs of declining solar costs
Around the world, developers are installing different types of solar panels and arrays highlighting just how far the cost of solar has dropped. In a span of only five months, two new installations illustrated how the cost of solar declined about 25 percent – reaching an all-time low in the cost per kilowatt-hour.
One of the reasons for this aggressive price drop is that solar manufacturers are learning how to use better technology to cut the costs of equipment. As a result, places like the northeastern U.S. saw the price of solar panel deliveries drop by 25-30% between the first and third quarters of 2016.
Frank Wouter, the former director of renewable-energy investment company Masdar Clean Energy, said, "There's no reason why the cost of solar will ever increase again."
In his keynote address at the Bloomberg New Energy Finance annual conference in April, BNEF Chairman Michael Liebreich explained how long-term deployment programs in the solar industry have created such an optimal price environment.
"We've seen the costs come down by a factor of 150 since 1975," Liebreich said. "We've seen volume up by 115,000."
The declining cost of solar around the world suggests where the overall industry is heading. For instance, analysts project a new 100MW solar array in Nevada to deliver electricity at $0.04/kWh. This is a major drop from the current average cost.
Low costs make solar more accessible
Falling solar energy costs will continue to provide a greater incentive for homeowners to install rooftop solar systems. It’s tempting to keep waiting for prices to keep dropping, but the longer you wait the longer you’ll be paying more for your electricity than you need to.
With $0 down and low monthly payments, a solar system from Sunnova can save you money the moment it’s turned on. Plus, every Sunnova system is backed by a 25-year, panel-to-panel warranty that covers every piece of the system and the labor to replace it, if necessary.
We do this because the best way to save you money is to ensure your system is producing clean, affordable energy. To find out more about solar and to find a plan that fits your needs, click here.