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More Affordable Solar on the Horizon?

January 24, 2009 by  
Filed under Green Issues

solar20panel_thumbnailWhether you’re motivated to join the “green” movement, envious of your neighbor or just simply excited by the thought of a $2 electric bill this summer, then you will be even more excited by recent news that “going solar” is predicted to get a lot more affordable over the next year or two.    

According to a recent article in USA Today, prices for rooftop solar systems, including installation, already have fallen 8% to 10% since October and are expected to drop another 15% to 20% this year.    Due to a surplus in supply from Solar Panel manufacturers, particularly overseas, it is predicted that prices will continue to drop.

In California, which accounts for nearly 70% of the U.S. solar market, a typical 4-kilowatt, $32,000 solar energy system cost a homeowner about $23,000 last year after state and federal incentives. This year, if prices sink as expected, that system is likely to cost $10,000 to $12,000.

Additional incentives are still available on both a Federal and State level which may make the dream of cheaper, greener electric a reality. 

For more information about solar prices, incentives and installation contact a local Solar contractor near you.

  • Federal: In late 2008, Congress extended the federal tax credit for solar systems by eight years, and waived a $2,000 tax cap in favor of a 30 percent tax credit. For most consumers, this makes putting a solar photovoltaic system on their roof thousands of dollars cheaper.
  • State: Incentives from the California Solar Initiative decline as the number of installed megawatts grows. Its residential incentives began at $2.50 a watt and have dropped several times since. Customers scrambled to get the $1.90-a- per watt rate before it fell to $1.55 a watt on Dec. 1. Other incentive programs are available for new homes, low-income housing and nonresidential systems.
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    One Response to “More Affordable Solar on the Horizon?”

    1. Solar Sasch on January 26th, 2009 8:28 pm

      It should also be noted, as we’re experiencing exceptionally cold winter temperatures, that solar water heating systems are also given a $2k tax credit by the feds as well. While the limit is smaller than for solar electric systems, the average cost for a solar hot water system is 20-70% of that of a solar electric system and has a much better financial return on your investment. And yes they will even work in this very cold weather. If you’re a handy person and can install a solar water heating system mostly yourself (maybe a professional plumber for final look over or especially difficult sweating of pipes) than you expect to save more than 50% over the cost of a professionally installed system. Our company, AltE, offers solar water heating systems with the DIY’er in mind.

      On a related note – solar air heating systems are equally as cost effective a solar water heating systems and easy enough for most DIY’ers to install on a weekend. A typical solar air heating collector (about 4’x8′) is used per 700 sq ft of home space and will offset about 30% of the heating needs for that space. It’s kinda’ like the electric motor in the hybrid car. The electric motor’s use makes the overall car more efficient, though it does use the normal gas engine as well. Same thing with a home on solar air heaters – when it’s on that’s less gas or fuel oil you’re consuming, reducing your fuel bill by about 30%.