Solar power is everywhere. There
are even solar powered roads. As solar power heats up, prices are going down.
A young French
physicist Edmond Becquerel discovered the photovoltaic effect i.e. formation of
electric current in a material after being exposed to sunlight during his
experiment. Scientists continued exploring this photovoltaic effect over the
following years, patenting and creating solar cells, using this heat water and
doing extensive research to increase the efficiency of solar energy.
Solar technology was
really hitting as huge cost reductions were made in recent years. It causes world leaders, governments, and the
private sector to get on board and moving solar from a niche technology into popular.
Soon, regular people in communities all over the world were installing panels
on their roofs and in numerous other applications due to the technology's
improving economics and innovative incentives and financing models.
It become clear that in a relatively short
period of time an incredible future is ahead for this renewable source of
energy and as you might expect, the more the price falls, the more attractive
it becomes.
Reasons for Cost of Solar Energy
Keeps Falling
1.
Manufacturing Costs Taper Down
Solar panels, panel
racking costs and inverter costs have come down at a steady pace each year,
resulting in large declines over time. There are a variety of causes, including
manufacturing efficiencies, a steep decline in polysilicone prices from their
high levels a decade ago (a material used by the photovoltaic solar industry)
and fierce competition among manufacturers.
2.
Solar Technology Advances
Greater the efficiency
of the solar panels greater the overall energy production of the system.
Some
other associated costs are reduced by greater efficiency, such as installation,
racking system equipment, and transportation costs. Efficiency in case of fuels
greater chance to sell more solar generation capacity, as many residential
systems are limited by the space available for mounting panels.
3. Solar Investment Tax Credit
The tax credit does not
directly reduce the cost of solar energy. It help to create the scale of
economy needed for solar panels to be cost effective .It also helps to create
stability in the market for companies wanting to invest in infrastructure, research
and other investments with a longer return. It’s worth noting that some,
however, argue that the tax credit stifles innovation by artificially lowering
prices. Since
its passage in 2006, the Solar Investment Tax Credit has offered greater
stability and a significant incentive for installing solar energy systems, for
both the residential and commercial markets. The tax credit was created to
support the rapid usage of solar energy until it is cost competitive without
it.
4.
Synergy Allows for Greater Solar Energy Growth
The trends that help the
growth of the solar energy industry continue, making future growth probably.
Today’s solar systems are generating more electricity and a larger percentage
of total household energy use. The lower the price of a solar
system and the shorter the payback period, the more people will go solar.
People also tend to install solar energy systems when their neighbors do, thus
solar installations encourage greater growth.
For Solar Products visit Alphazee.
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