Solar Is a Key Piece of Our Energy Future
There may still be a few outliers who deny the existence of anthropogenic climate change, but for the most part, the scientific community has reached a consensus: yes, climate change is happening, and human activity is directly contributing to it. It poses a grave threat to life on earth, and we must do something to mitigate its effects. Viewed from any angle, it looks like that “something” will involve the widespread adoption of photovoltaic technology.
That’s why the US Department of Energy’s Sunshot Initiative’s only goal is to drive down the cost of going solar. And the good news is that it looks their goal is coming to fruition.
The Cost of Going Solar Is Lower then Ever
As you’re undoubtedly aware, the installed cost of solar is rapidly falling, and adoption rates are rising just as quickly. To see just how fast solar is gaining favor, one only need take a gander at this graph featured at Clean Technica back in February. It clearly illustrates that for a long time, solar costs were falling, but adoption rates remained stubbornly flat.
But right around the year 2005, something big happened. Solar energy’s value proposition became too enticing to ignore, and people started going solar in record numbers. Since then, the adoption rate has risen exponentially, and solar costs have continued to tumble.
New Records for Affordable Solar
Large-scale solar installations are continually setting new records for affordability. Back in August, a Chinese utility-scale project received a bid of $0.46/Watt, and Abu Dhabi solar initiative more recently received a bid of $0.023 per kWh. Solar prices are falling for US consumers, as well. Some parts of the country have seen installed solar costs fall by as much as 40% since 2015.
What’s Behind the Trend in Solar Costs?
So what’s driving solar costs down? Between 2008 and 2012, inexpensive solar modules from China forced solar makers to compete on price, but since then, panel prices have remained in a sort of equilibrium. These days, it is soft costs that are falling – customer acquisition, installation, maintenance, regulatory compliance, and administrative expenses.
When Should Your Clients Go Solar? Right… About… Now!
From PPAs and solar leases to purchasing a solar array outright, it’s never been more affordable to go solar in the United States. And though it’s unlikely we’ll see solar costs plummet like they have over the past decade, they should continue to steadily decline.
However, the government-sponsored incentives that have heretofore sweetened the deal for solar adopters won’t last forever. The most popular and widely known of these – the federal solar ITC – is set to sunset for residential customers in 2023, and many state and municipal incentives will likely disappear long before then.
Show Your Prospects How Affordable Solar Can Be
In short, the current combination of low solar costs and lucrative incentives makes this an ideal window of opportunity for solar buyers – and your solar installation business.
Education is of the keys to driving solar adoption (and driving prospects into your solar sales pipeline), so as a solar installer, you should be taking every opportunity to illustrate just how perfect a time it is to go solar.
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