7 Experts on Why Solar Power is Becoming More Affordable

Solar power is a renewable energy source for a reason, supply is never a problem as long as there is sun. Unlike other energy sources like fossil fuels, solar power is cheaper to process and requires much less effort to produce.

Aside from that, with the recent agreement of countries to put emphasis on reducing carbon emissions, solar power is getting a huge amount of support and companies are getting more funding from banks and local governments.. This makes prices less for consumers and solar panels more accessible to households and solar farms resulting to an increase of supply and a steady decrease in prices.

The cost of a solar energy system is approximately 100 times cheaper today than it was in the 1970s, and this trend of decreasing costs shows no sign of slowing. Each year, it’s becoming more affordable to install solar panels. In fact, in 2016, solar officially became cheaper than traditional, carbon-based fuel sources in several countries.

Here are the main factors that are driving solar power costs down:

Cheaper, more efficient components
The cost of the materials used to build solar panels and inverters has dropped significantly due to increased demand, a more efficient global supply chain, and improved resource allocation for development.

Lower soft costs
In addition to hardware costs, solar panel installation also includes a number of soft costs, including transportation, marketing, permitting, inspection, transportation, and financing. These soft costs typically represent more than 50 percent of the cost of a solar energy system. Fortunately, the soft costs associated with solar power systems have been falling as well, which is contributing to a lower overall cost.

Tax incentives
Fossil fuel production has come under fire in recent years due to the negative environmental impact of carbon dioxide emissions. Solar panels are viewed as a feasible alternative energy source, so many legislators and organizations have worked make them more affordable and attainable through subsidization.

One example of this is the Solar Investment Tax Credit, which is offered by the federal government and provides a 30 percent credit to people who have a residential or commercial solar system installed.. This tax credit was recently extended out to 2021, though the amount decreases after 2019. In addition, some states also offer their own additional tax credits and incentives for those who choose to go solar.

Increased popularity
Solar panels have become increasingly popular over time; more than one million U.S. homes are currently being powered by solar energy, a recent poll found that 9 out of 10 adults are in favor of expanding solar power use, and job growth in the solar industry is outpacing the national average for employment growth by 20 times. Increased awareness and willingness to invest from consumers has helped solar expand into new markets and provided more capital for solar tech development and improvement.

The increased affordability of solar panels is a direct connection to the government’s recognition and support of the benefits from creating more renewable energy sources to help lessen the stress on the grid. As city, state, and federal government offices have created more and more incentives for homeowners to put solar panels on their roofs, more homeowners have gone solar.

With Orange Rockland, NYPSEG, and of course con ed tasked with holding the responsibility for processing and storing energy created from the panels, homeowners do not switch service providers but simply instead of giving their electricity companies as much money as they have in the past, they now give them electricity and far, far less money.

With property tax abatement benefits, state income tax credits, federal income tax credits, and guaranteed lower electricity bills, my and a few other solar programs cost the homeowner nothing and then save them thousands and thousands of dollars in their taxes and monthly bills immediately.