Cost of Solar Energy
The Real Solar Power Cost
What is the Real Cost of Solar Energy? Solar power cost estimates for the average household. How using cheap solar power methods can save on the overall cost of solar power at home.
The cost of solar power for YOUR home will depend on a number of variables.
Where you live, how much power your household uses, whether you buy new or used solar panels, how much sun your property receives, incentive programs available to you... and so on, will all have an impact on the solar power cost at any given location.
You have a great deal of influence over the ultimate cost of your solar power system.
By using some energy conservation tips and techniques to reduce energy needs and by starting with some passive and thermal solar basics you can cut your energy requirements in half. That will have a powerful effect on the cost of your solar power system.
You also have to consider whether you'll be installing a grid-tied system or an off grid system. Of grid systems require a bank of batteries. Batteries will not only affect the initial price of the system, but ongoing costs and maintenance as well.
The short answer to the question "what is the cost of solar energy?" is...
A Lot and a Lot Less!
As you'll see below, the cost is on a definite decline.
We've chosen, as our model home, an average household on the 38th parallel that consumes 15 KWH of energy per day. For comparison we've calculated the cost of a 10 KWH per day system and a 5 KWH per day habit.
In 2007 we reported:
"An average home in the U.S. on the 38th parallel uses 25 KWH per day or 9,125 KWH per year. Without making any changes in the way this average household uses their energy, the solar panels alone would cost $97,250... YIKES!"
Watch how that figure changes as energy demands decrease.
The day that I checked the price (May 2007) it was 4.86 USD per Watt for the panels only.
At $4.86 per watt the cost of solar energy would be:
- 15 KWH (15,000 watts)... $72,900.
- 10 KWH (10,000 watts)... $48,600.
- 5 KWH (5,000 watts)... $24,300.
Pretty pricey, and in spite of that the market continued to grow.
We checked again in September of 2009 and here's what we found.
~ Archive - September 2009 ~
Solar power is available today (Sept. 2009) for as little as $3.86 per watt, (Evergreen Solar Panels at the Alternative Energy Store ) which is $1. less than when I priced it out in 2007.
- (15 KWH) 15,000 watts per day at... $57,900
- (10 KWH) 10,000 watts per day at... $38,900
- (05 KWH) 5,000 watts per day at... $19,450
August of 2011 made a huge drop.
~ Archive - Aug. 2011 ~
The following was calculated using the 215 Watt Suntech Solar Panel at the Alternative Energy Store at $1.89 per Watt.
- (15 KWH) 15,000 watts per day at... $28,420
- (10 KWH) 10,000 watts per day at... $18,946
- (05 KWH) 5,000 watts per day at... $9,473
The Cost of Solar Energy - 2012
~ UPDATE - January 2012 ~
This data was compiled at $1.29 USD, which is the price per pallet of 26 Suntech 225 Watt panels at Alternative Energy Store.
- (15 KWH) 15,000 watts per day at... $19,350
- (10 KWH) 10,000 watts per day at... $12,900
- (05 KWH) 5,000 watts per day at... $6,450
These are the least expensive panels we've found that are available online. 2012 has also heralded in the under-$2.00-a-Watt Kyocera panels.
Additional costs for wiring, hardware, mounting racks, batteries, inverter, charge controller and installation will easily amount to $10,000 - $20,000.
These calculations are for an off grid photovoltaic system, paid by cash (no interest payments) and no rebates or incentives have been applied. The real cost, after taking those variables into consideration will be much lower.
Cost of Solar Energy - Grid Tied System
Grid Tied Residential Solar Power Systems are becoming increasingly popular and are commonly in the 5 to 10 KWH size range.
Pre packaged Grid Tie Kits include the inverter, mounting racks and hardware, making the system not only plug-and-play but much easier to cost out because the major costs are included in the kit.
Because the grid is there to pick up where the solar panels leave off it's a simple process to choose the system size that fits your budget, roof size and location.
No need to calculate the best size of inverter for your system or precisely determine how much energy you'll need in December; systems that remain tied to the grid can draw energy from the grid when needed and sell energy that isn't immediately needed back to the power company.
Incentives & Research Influence the Cost of Solar Energy
Incentives
US Residents can check here for available incentive programs, which can reduce the cost of solar energy for your home by half.
Currently there are incentive programs available in nations around the world many of which will decrease your solar power cost by as much as half.
Also, a great deal of research continues to take place to reduce the cost of solar power, especially PV solar and Thin Film. It's abundance and renewability are unmatched by any other alternative home power source.
Although raw silica (in the form of sand) is one of the most abundant materials on the planet, it takes a lot of time to grow the silicon crystals that are the heart of the solar cell. The bigger the crystal, the more time it takes and the more it affects solar power cost and supply.
Mono-crystalline and Polycrystalline Cells
Monocrystalline solar cells are composed of a single (mono) large silicon wafer. Although one large wafer is more efficient than many small wafers, it takes much longer to grow them, making them more expensive than polycrystalline.
Polycrystalline solar cells are composed of many (poly) small wafers and fragments. The use of the more abundant and easier to obtain, small wafers, keeps the cost lower but some efficiency is lost.
Thermal - The Cheap Solar Power
Hot Solar
A toasty car on a cold sunny day or a shower of warm water from a dark container left in the sun, are examples of the thermal effect of the sun.
In Africa, a friend who was working there had to wait 'til after midnight to shower because the water stored in the overhead tanks was too hot!
Thermal collectors are inexpensive, low tech, water and space heaters that absorb heat and transfer it to water, air or a solution. These units do not make electricity they simply collect and store the heat from the sun.
There are a variety of types on the market - learn more at solar power water heaters.
A solar water heating system can reduce your utility bill by as much as one third with a relatively small initial expense. Costs are more quickly recoverable with a thermal system than a PV system.
PhotoVoltaic - The Not-so-Cheap Solar Power
Photovoltaic systems turn the light (photo) of the sun into electricity (volts).
A higher technology and more expensive method of using the sun's energy. This is the stuff that makes ice cubes and powers the laptop.
Once a photovoltaic system is installed, it can be expected to last for 30 or even 40 years with a little (very little) maintenance.
A solar panel rated at 85 watts might deliver slightly more than 85 watts for the first couple of years, eventually dropping off to generate slightly less than stated after several years of use.
Prices are declining and thin film photovoltaic technologies are reducing the cost of solar energy for many applications.
Keeping the Cost of Solar Energy Down
Step 1 ~ Cost of Solar Energy
Economize on Energy - Find practical ways to reduce your energy consumption, incorporate some passive solar concepts and add a solar power water heater for household water and swimming pool heating.Step 2 ~ Cost of Solar Energy
Count Kilowatts - Determine how much energy your household uses (after you've made the changes). To do this check your power bill which will state in KWH (kilowatt hours) how much energy your household used during that billing time frame. Planning a solar power system around the months with the highest demand ensures that your household is adequately powered throughout the year.Step 3 ~ Cost of Solar Energy
Select System Size - Decide what kind of system you intend to install. Choose a Grid Tied System or Independent System or perhaps you'll want to only heat water or a swimming pool. Maybe all you need is a back up solar power system to provide blackout protection and otherwise pick up where the energy grid leaves off.Step 4 ~ Cost of Solar Energy
Find Incentive and Rebates - Determine whether there are incentive programs in your area that you can take advantage of. If you live in the U.S., steps 4 and 5 can be combined by finding a professional solar energy installer who will calculate costs, minus incentives, of a solar thermal or photovoltaic system, at your project site.-
Step 5 ~ Cost of Solar Energy
Interview Installers - Find 2 reputable dealers who sell and install solar energy systems in your area. Get a quote from each for the entire job plus references.
As noted above, the cost of solar energy is rapidly declining and homeowners options are becoming more and more practical.
If you're even remotely handy making your own solar panels is a super cheap solution!
Adding a photovoltaic system to your mortgage, spreads the solar power cost into bite sized chunks. Although you pay interest on it and it increases your monthly mortgage payment - at the same time, your monthly energy cost decreases.
When you burn your mortgage agreement, your solar energy system is paid for and your utility bills are non existent or dramatically reduced -- and at the current annual rate increasing at between 5 and 6%, who wants to even guess what the price of non-renewable energy will be at that time?
Visitors to our Cost of Solar Energy page may also be interested in the following pages
Buying Used Solar Panels
Cheap Solar Power
Solar Energy Cost
Thin Film Photovoltaic
