Solar energy was once seen as the exclusive domain of the lucky few who could afford solar panels, but these days, the only way is up for this renewable energy. Today, it is a secure investment for the average family, with costs having fallen by 82% since 2010. It costs $0.068/kWh, compared to $0.378 ten years ago, reports the International Renewable Energy Agency, and the price fell by around 13% between 2018 and 2019 alone. There are three main reasons why more families and commercial entities will be opting for solar energy in the near future: improved technology, better competitiveness in the supply chain, and the advent of more experienced developers.
What Is The Initial Outlay?
The cost of solar panel systems has shrunk by around 20% over the past five years, says Energy Sage, with the average cost this year standing at around $12,920 after tax credits. However, this expenditure completely pays for itself in a time frame of between six and nine years (the amount of time depends on how much energy you used and how much you paid to install solar energy).
Commercial entities that wish to take the plunge but that do not have the capital can also consider solar panel financing, which has several options. This includes power purchase agreements (in which businesses pay no upfront investments and pay fixed energy costs for up to 30 years) and solar leases, with fixed lease payments. Working out which agreement is best can be easily gleaned by calculating the difference between current energy costs and those offered by each option.
Solar Energy Removes The Risk Of Rising Energy Costs
The cost of conventional energy has risen around $0.2 per year on average. The more prices rise, the more companies and businesses that have opted for solar energy save in the long run since their costs will be consistent throughout the lifetime of their system. For a good idea of how much you can save, take a look at how prices of conventional energy have changed; you will find that between 2010 and 2020 there has been a continuous rise.
A Rising Demand For Solar Energy
As the fight against global energy gains ground, so too will the demand for clean energy from solar and wind sources. Currently, solar energy accounts for around one percent of the total energy produced, but experts predict that this figure will rise to 16% by 2050. Solar energy will be more present not only on rooftops but also on the utility-scale. Several trillion watts will be created with solar energy by utilities around three decades from now.
Americans are hoping to live more sustainably, and now, doing so by using green solar energy is more achievable than ever. With prices of solar energy dropping and the cost of installation paying for itself in a few years, opting for renewable energy is wise both from a personal and business perspective. There is no doubt that the renewable energy sector is moving full speed ahead, with life in 2050 predicted to be very different from what it is today.