01 Sep Solar Prices Continue to Drop
Solar prices are at an all-time low, decreasing more than 50% in just the last five years, according to the Lawrence Berkeley National Laboratory. This is wonderful news for those that want to go solar but have been waiting for the opportune time. The prices are predicted to keep dropping, although the percentage will likely slow in coming years.
The price drops of solar energy systems were anywhere on a scale of small to significant. In 2015, residential system costs dropped 5 percent since the previous year, and large commercial utility-scale systems dropped by a whopping 12 percent. Systems of sizes in between these ends of the spectrum saw a drop of about 7 to 9 percent. This is the sixth consecutive year of significant price reductions for distributed PV systems in the United States.
So why is the decrease occurring? The price drop does not come from the most costly equipment of a solar energy system as one would assume, the solar panels themselves (photovoltaic modules), as these prices have remained relatively steady since 2012. The main cause of the price drop is attributed to costs of solar energy systems as a whole such as decreased marketing and customer acquisition costs, a more efficient regulatory environment, and lastly, lower installation labor. All of these factors add up to more and more savings for those that go solar.
So why not wait longer to take advantage of even lower prices when switching to solar? Although prices will likely lower, they are predicted conservatively to decrease by 3% to 5% each year in the near future. This means that these price savings would be nothing compared to the savings on electricity bills between then and now. Waiting will only delay BIG energy bill savings, especially with the coming rising rates from utility companies such as PG&E. If you are wondering whether going solar would make sense for you and your family, be sure to contact us for a quote on solar to brighten the future of your bills.
By Kayla Rabbich