1.Businesses and homeowners can go solar today with no money down.
- This is one of the main reasons why many people have managed to go solar. Due to high initial cost of solar, many individuals as well as businesses are unable to pay-off the high initial amount upfront and hence solar power purchase agreements (solar PPA) as well as solar leasing have become very common to help them go solar with no money down.
- Under solar PPA model, homes and businesses will go solar and then pay only for the electricity they consumed (kWh) at a rate slightly lower than their monthly utility bill. With regards, to solar leasing, the homeowner or the business will lease the solar equipment and pay a fixed or variable amount for the use of the equipment.
- In both these models, the host (the business or homeowner involved) will enter into an agreement with the solar provider and the agreement can range from between 5 to 25 years based on the specific circumstances of the host. Learn more about solar panel financing.
2.The solar panel cost continues to drop every year.
- We cannot mention increased solar adoption and not talk about the reducing cost of solar panels. As such, the price of solar panels reduced by 80% since 2009. The International Renewable Energy Agency (IRENA) has projected that solar panel cost will continue to reduce and one of their solar studies projected a further 50% cost reduction for electricity generated by solar PV. (IRENA is an intergovernmental organization that supports countries in their transition to a sustainable energy future).
- With the reducing solar panel cost, it means solar energy will likely be the energy of the future and it is envisioned that it will work better in a hybrid system where other sources of energy such as wind, geothermal, natural gas etc will be great candidates to be combined with solar and complement solar energy when solar irradiation is low like in the nights or during winter when nights are longer than days.
- The point at which the cost of solar becomes competitive with power from the grid (levelized cost of electricity (LCOE)) is called grid parity and this is already happening in some countries like Brazil, Uruguay and other countries that have reported solar power costs below 7US cents/kwh.
- The cost of solar is also greatly reduced through government subsidies in form of investment tax credits (ITC) and state rebates which further reduces the cost of going solar. By bundling up ITC and state rebates, you can further reduce the cost of solar by almost 50% thereby increasing the affordability of solar.
3.The process of going solar has been made easier and faster:
- The process of going solar is now simplified using online solar tools like EnergySage or Geostellar and other new solar tools that have been developed to assist decide about going solar. Learn more about online solar tools.
- These tools were created by the private sector with support from the government with the intention of reducing customer acquisition cost that is estimated at $3,000 and hence reduce the overall cost of going solar.
- Customer acquisition in the solar business involves a lot of work in sales, follow-ups, marketing and the time involved in acquiring new solar customers is expensive.
- With online solar tools, a solar customer can compare solar prices, financing options and can be able to get estimates about how much solar electricity as well as how much they can save with going solar. Online solar tools are very useful to help a user know whether solar is right for them or not. Also, solar customers are able to answer the most common question potential solar buyers ask i.e. Are solar panels worth it?
Interested about solar? get started today and find out about pre-screened solar electric contractor, whether solar is good for you based on your location, roof design, how much you can save with solar and solar financing options available. Start today with EnergySage or Geostellar.