Solar News & Information
How have Solar Energy Costs Dropped 90% for Americans?
November 29 , 2023
Often, after technology is introduced to the consumer market people will flock to it once it is proven to enhance their lives or their enjoyment. As more people buy and utilize it, generally the cost to manufacture and distribute will drop.
A drop of 90% in a decade seems like a lot, however. Is it true?
Studies in the U.S. and abroad conclude that solar panel costs as well as overall solar installation costs have dropped massively since being introduced to the public at large earlier in the 20th century. Even in the last decade, analysts tend to agree that costs the globe have come down by nearly 90%. As an example, Berlin-based climate researcher Mercator Research Institute on Global Commons and Climate Change (MCC) released its study concluding that the cost of solar power has dropped by 87 percent, and the cost of battery storage by 85 percent.
Solar power and storage prices have dropped almost 90% (interestingengineering.com)
In addition to the decades long steep drop in solar installation costs. the National Renewable Energy Lab (NREL) determined that 2023 is seeing a unique 15% reduction. NREL analysts attribute this to those supply factors at play for over a decade as well as unique benefits in the U.S. from the more recent Inflation Reduction Act.
What Caused Solar Installation Costs to Drop?
Solar power popularity comes as a direct result of the value it delivers. Bottom line savings in electricity costs over decades means buyers can easily return over double their investment from the years of production. And growing popularity provides continuous opportunities to improve technology, streamline manufacturing, and reduce soft costs. Soft costs include most of the needed services outside of hardware purchases. Labor and sales costs are commonly defined as soft costs.
So, while there have been increases in solar panel efficiency and durability and steep drops in solar panel costs, there have also been significant drops in the cost of solar power management components. More importantly, installers like SunRa Solar have also been aggressively working to become much more efficient in operations and installation of the products and services you buy. As we become more productive, we pass those savings along to you.
How Have Solar Incentives Impacted Costs?
For Massachusetts homeowners, federal tax credits and SMART program payments are an attractive contributor to the overall savings from your investment. Federal tax credits apply to your total expense, so while costs are decreasing over time, you still will enjoy a 30% credit calculated on your purchase expense.
All solar energy systems generate solar power at a rate that follows the sun’s radiation without any matching to how much you consume at home. This makes the local power grid your buffer. You send and receive electricity along the distribution lines as needed to balance what your rooftop solar is producing at any moment. SMART payments were devised as a fair way to compensate you for this solar power you are producing. You are treated in a way like a tiny power plant in your neighborhood!
For further details visit >> Residential Solar Incentives
Does This Mean Today is a Good Time to Go Solar?
We think the cost of going solar in 2023 and looking forward into 2024 is a great value for a large portion of Massachusetts homeowners. Currently, customers are saving enough to cover their initial investment after as few as 4 to 5 years of operation. A lot depends on location and how much energy is needed to cover demand in the home.
Rather than try to convince you with words, we prefer to simply provide you with numbers and let you decide on your own without interruption or pressure.
You can get a ballpark savings estimate of your own. Click at the top of this page to Get Estimate!
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Contact Us with questions or to see exactly how solar power will work for YOUR home, saving you thousands. It’s a free evaluation with absolutely no obligation.
