The cost of residential solar panels is dropping – still – which is great news for homeowners looking to go solar. The effect of falling solar prices is that the number of solar power installations are predicted to grow by over 15% per year. Overall, the cost of solar panels has fallen almost 20% as of August 2011.
While homeowners enjoy lower solar panel prices, solar manufacturers are looking at flat profits and price wars with competitors. Even a difference of a few pennies per watt will make a difference among the competition.
Why the dramatic decrease in solar prices? Some answers are offered in this video:
As the cost of residential solar panels is dropping, interest in solar leasing is also gaining traction in states where people might not ordinarily consider solar power. Instead of purchasing, homeowners can enter a contract to lease solar panels via a monthly fee that is lower than their current electricity bill. The fee is set for the duration of the solar lease, which means no rate increases for a period of 20 or 30 years! Alternatively, homeowners may consider a power purchase agreement (PPA) in which solar power is generated off-site and sold to customers at a cost lower than grid-based electricity.
With solar panel prices falling, homeowners can now expect to pay between $15,000 to $30,000 for a complete rooftop solar power array, including installation. Fortunately, the retail cost can be slashed in half (or more) with generous federal, state and local rebates and tax incentives.
Isn’t it time you took advantage of falling solar panel prices?