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Solar Power Costs - What Everyone Really Should Realize
There are two main factors which govern solar power cost and these are quite simply, the assembly cost of the solar panels and the installment cost of the solar system in your home.
Solar panels may be efficient, eco-friendly and help save the planet but until they can compete in the energy marketplace then they will never be widely used. A new coal-burning plant can easily deliver electrical power at $2 per watt and so this is the benchmark number that the solar scientists want to match.
For the last twenty years scientists have been developing innovative and cheaper designs of solar panels. It is the Silicone based solar photovoltaic panels which have dominated the industry and sell for approximately $3 a watt, but this is before installation.
For some time there was a real shortage of silicone and although the demand for solar panels was increasing, the solar panel suppliers were not able to fulfill that demand. Today although there is a plentiful supply of silicone, nevertheless the process of refining it to produce the semiconductors is a costly process and there are not too many facilities that do this. The handful of factories that can produce this refined silicone have a monopoly on the supplies which means that even though the demand is high they can keep the price inflated.
The actual price of refined silicone is one of the main factors in the cost of solar panels. The key thrust of research going on today is in developing ways to lower the amount of silicone that is needed to produce a solar panel. There is also research taking place with alternative cheaper materials that are equally effective. There are specific organic materials which have semiconductor properties which can be used instead of silicone.
The expense of installation will vary quite significantly depending on whether you do it yourself or if you call in a professional installer. To install a solar power system in your own home using a professional installer can cost you between $10 - $12 per watt. If you install the system by yourself then it will most likely cost you about $4 per watt.
While the initial cost of installation of a home solar energy system would still be relatively expensive there is no doubt that soon, given the amazing advancements that are taking place, the price will come down. In the mean time, governments all over the world are encouraging and subsidizing the use of this particular technology by offering tax savings and incentives for home owners who install solar power systems.
Therefore if you install your solar power system by yourself at the cost of approximately $4 per watt and claim all of the tax rebates and credits that are available in the area, then your solar power cost may not be so far from the $2 per watt benchmark of the energy delivered by the coal-burning plant.
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