As a Utah solar company, we want to give an accurate prospectus for the future of the solar industry. Not just in terms of Utah, but as it pertains to the rest of the world, too.
Although there are certain volatilities in the solar market, none will prove impactful enough to stop the proliferation of solar companies in mass.
For starters, it’s not just clean energy wonks who believe in going solar; it’s investors and homeowners merely seeking return on investment for the energy solutions they use to power their homes.
To aggregate the value of rooftop solar panels, steepened market competition drove down prices for Utah and American homeowners over the past decade.
And the price reductions are not just attributable to rebates, subsidies, and tax credits—they are the result of greater technology (primarily with batteries, inverters and modules), and an increasing economic demand for rooftop solar arrays.
In result, the traditional power economy is striving to find ways to keep the energy status quo affordable, but as the resources themselves become scarcer, this will be increasingly difficult to accomplish.
Especially since the source of solar power (the sun) is enduring and renewable enough to outlast any other mode of energy production.
Although one may look to the current administration in the White House and see less hope for residential solar than found in the previous years, residential solar solutions are one of the few renewable energy resources that has the potential for enduring economic longevity and relevance, according to the 365-page behemoth of a study published by MIT on the solar industry.
In fact, one of the reasons MIT believes the solar industry will prevail is the amount of governmental funding and research and development dollars that will be pumped into the solar industry as it ascends to greater prominence in 2018 and beyond—particularly as greenhouse gas emissions grow at an un-ignorable rate.
As the silicon wafers become more absorptive of the sun’s light, the costs of going solar will also be reduced for homeowners.
As a Utah solar company, we know that the absorptive component of the panels and solar battery power backup duration are the frontiers of innovation for solar companies worldwide, and we are striving to (and making progress in) ensuring these realities become more obtainable.
In the past six years, America’s PV bandwidth has increased eighteenfold since 2011. As the path to solar power becomes even more inevitable, this PV bandwidth will continue to expand at similar rates through 2025.
Residential Rooftop Solar Will Prevail: From Grid Parity to Environmental Concerns
As a Utah solar company, we believe it’s important for Utah residents to understand how net metering still lends to grid parity despite the recent net metering changes this month.
There is still a generous amount of savings to be won as a homeowner in terms of net metering, although the return has been slightly reduced from 92 to 95 percent of the earnings one would’ve earned from traditional net metering, the environmental future of our nation hinges on solar to supply the electrical needs of America’s homes.
One of the strongest ways to reduce CO2 and greenhouse gas emissions is through residential solar solutions. Although the cost of reducing carbon emissions will take significant effort, so has every necessary economic change in the span of American history that led to positive change.
Additionally, the environmental viability of solar powered homes will be further bolstered by advancements in solar panel technology at the c-SI level and other solar absorptive technologies enhancements.
The Future of PV Solar: c-SI (crystalline Silicon)
As a Utah solar company, we understand the importance of reaching terawatt scale in the solar market, and the crystalline Silicon wafers of solar panels will play a crucial role in helping the solar industry become even more cost-efficient.
The Future of Balance of System (BOS) Costs
The balance of system costs associated with solar power will be reduced over the next five years. Not only because changes to the delivery models, but also because of installation efficiency.
The BOS costs are any costs associated with the racking, inverters, installation labor, and financing costs. Essentially, they are the point of installation cost of solar panel mechanics, labor, and financing.
From Solar Cells to Panels: The Evolution of Solar Modules
We can see the future of the solar industry in the portrait of history, primarily as it pertains to solar panels for residences.
To understand the rapid cost reduction of solar modules, one must first understand the leaps and bounds made in technology over the course of the past 65 years, because similar leaps will take place in technological advancement in the future, further reducing the cost of going solar for Utah homeowners and solar advocates around the globe.
First resembling transistor technology, solar cells evolved into modules, which then became panels. And, finally, the panels became what are now known as solar arrays.
Essentially, the solar cells, which merely converted sunlight into direct current (DC) electricity have now become full-blown arrays: intricate electricity-generating units employing both PV modules and panels to transduce solar energy into home-powering devices with sophisticated solar inverters.
The technology is quite miraculous, and these innovations are still young with plenty of room for engineering improvements that will reduce costs and keep solar power on its steady ascension.
Knowing Levelized Cost of Electricity (LCOE) by Region Will Contribute to Savings
If you want to go solar, it’ll help you to know what the levelized cost of electricity in your region is by electricity source.
This, of course, hinges on seasonal rates of electricity and the way utilities companies structure payment based on their business model.
The levelized cost of electricity is fancy industry term for saying that different methods of producing electricity produce different costs associated with energy consumption.
This is one of the barometers policy makers use to influence solar funding and incentivization on a regional basis.
The cost per kilowatt hour as measured in terms of the levelized cost of electricity hinges heavily on the geography of electricity production, including the materials through which it is produced.
If you have questions on going solar or would like more information, request your personalized solar quote today.