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Details Everyone Need To Grasp About Solar Power Costs
There are two main factors that govern solar power cost and they are quite simply, the assembly cost of the solar panels and the installation cost of the solar system in the home.
Solar panels may well be efficient, eco-friendly and help to save our planet but until they can compete in the energy market place they will never be widely used. A new coal-burning plant can deliver electrical power at $2 per watt and so this is the benchmark figure that the solar experts want to match.
For the last 20 years scientists have been developing ingenious and cheaper designs of solar panels. It is the Silicone based photovoltaic panels which have dominated the industry and sell for about $3 a watt, however this is before installation.
For some time there was a real scarcity of silicone and although the interest in solar panels was increasing, the solar panel producers were not able to fulfill that demand. Today even though there is an ample supply of silicone, nevertheless the process of refining it to make the semiconductors is a costly process and there are not many facilities that do this. The few factories that can produce this refined silicone have a monopoly on the supply meaning that even though the demand is high they can keep the price inflated.
The price of refined silicone is one of the key factors in the cost of solar panels. The main thrust of research going on today is in developing ways to reduce the quantity of silicone that is needed to produce a solar panel. There is also research taking place in using alternative less expensive materials that are equally efficient. There are specific organic materials which have semiconductor properties which may be used rather than silicone.
The expense of installation will vary quite dramatically depending on whether you do it by yourself or if you call in a professional installer. To install a solar powered system in your own home using a professional installer will cost you between $10 - $12 per watt. If you install the solar system by yourself then it will probably cost you about $4 per watt.
Whilst the initial cost of installation of a home solar power system would still be relatively expensive there is no doubt that in the near future, given the astounding advancements that are taking place, the cost should come down. In the mean time, governments around the world are encouraging and subsidizing the use of this particular technology by offering tax rebates and credits for home owners who install solar power systems.
So if you set up your solar power system yourself at the cost of approximately $4 per watt and claim all the tax savings and credits that are available in your area, then your solar power cost may not be so far from the $2 per watt standard of the energy delivered by the coal-burning plant.
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