Solar PV prices are decreasing with time. The Federal government as well as States multiplied incentives to encourage citizens to flip the switch. The 30% federal tax credit can be add to States’ subsidies and thus entitle more citizens to access solar energy. Incentives are not the only factors that explain the rocketing popularity of solar PV, net metering and solar leasing are also playing a part in making solar energy more accessible to Americans. The latter are very receptive to all those ways to access solar energy as saving on energy bill is now one of the main motive people invoke when asking why they are choosing solar. A few years back, producing clean energy was the main reason for people to flip the switch.
Solar energy is even more popular in States where utility bills are very expensive such as California or Hawaii. Utilities are starting to fight back against solar as they denounce State subsidies. For Utilities, it is time for solar energy to walk on its own and subsidies legitimacy was only to launch the solar market in the country. In California, Arizona and Colorado, utilities fiercely fight against subsidies to solar panel owners as they argue their customers are paying for subsidies without receiving any benefits from them. Last week, California passed a bill allowing regulators to reduce solar incentive if needed.
In the US where a kilowatt per hour is billed $0.15 or more, the solar industry is aiming to take 16% of the retail electricity market share. For residential solar representatives, solar power only cost $0.10 - $0.20 against $0.114 - $0.33 for traditional on-grid electricity in California for example. Analysts at GTM Research expect the number of home installation solar to increase by about 50% this year, which should represent 776 MW, and by an additional 38% next year, representing 1070 MW.
Installing solar panel is still the most expensive soft cost of an overall home solar installation but it tends to decrease with time, auguring a bright future for residential solar installation.
- By Greenshine New Energy, solar powered lighting solution: street lights, parking lot lights, pathway lights