For centuries, humans have been relying on the power of the Sun to nourish them and sustain them. This year, thanks to advancements in technology, we are able to tap into the bountiful supply of solar energy more effectively than ever before.
This renewable, clean energy source has recently become exceptionally popular, and as a result, solar power has seen an incredible boom in popularity. In order to fully comprehend the true cost of solar energy, let’s examine how much solar actually costs, and how much it will cost in the long-term.
How Much Does Solar Energy Cost?
The price of solar has come down significantly in recent years, and now that the technology is more accessible, it’s time for the world to embrace this amazing energy source.
While the cost of solar equipment has decreased, the price of solar energy has stayed relatively stable, primarily due to increased demand and limited supply. These factors, paired with the increasing popularity of rooftop solar, are leading to higher prices in the long-term.
The Cost Of Solar Equipment
The cost of solar equipment has decreased significantly in recent years, and thanks to major advancements in technology, we’re now able to harvest more energy from smaller, more compact devices.
The price of a solar panel is now well under $1,000, and the price of a solar farm has come down as well, making this an economically attractive option for homeowners and businesses who want to go green.
However, despite the incredible decrease in cost, the price of a solar panel or solar farm does not include the cost of batteries, nor does it include the cost of installation, which is estimated to be around $22,000.
The Cost Of Batteries
Regardless of the source of your power, batteries are an essential part of any budget. Batteries allow us to store energy from renewable sources like solar and wind power, which is why the price of these has stayed relatively stable over the years.
The most popular batteries on the market today are lithium-ion batteries, and the prices for these have decreased significantly in recent years. As a result, these are the batteries of choice for green energy suppliers and companies that rely heavily on alternative energy.
The cost of lithium-ion batteries is now around $1.70 per kWh, which is significantly less than the $250 per kWh that used to be the standard price a decade ago. Batteries are also a key part of the overall cost of solar energy, and as much as 70% of the cost of a typical residential solar install comes from the purchase of batteries.
The Cost Of Installation
In addition to the cost of the equipment, there is also the labor cost of installation. While professional installers are getting paid more, it’s still not financially feasible for homeowners to have an expert come to your home and install solar. Especially since today, it is possible to have systems professionally installed that are both affordable and efficient.
To put this in perspective, it cost $22,000 to install a 3kW system (the typical size for a residential rooftop system) with 12 VDC panels, and $11,000 for a 1-5 kW system. While this sounds like a lot, it’s still a small fraction of what it would cost to hire a professional energy consultant to come to your house and guide you through the process of installing solar yourself.
In summary, the cost of solar energy is coming down, but is still highly dependent on the cost of equipment and the labor involved in its installation. Due to mounting demand, let’s predict that the price of solar energy will continue to decrease in the coming years, making this renewable source more affordable for individuals and businesses around the world.
However, while the cost of solar has decreased, the price of solar energy has stayed relatively stable, primarily due to increased demand and limited supply. These factors, paired with the increasing popularity of rooftop solar, are leading to higher prices in the long term.