Economics, Market Conditions Making Solar Affordable
Affordable solar power is changing the way the world gets its energy, in a big way. Several recently published reports explain the amazing market transition happening today. In the United States, the trend is even more striking, thanks to the drastic drop in equipment costs over the past few years. Indeed, solar energy is turning the global economy on its ear. For the consumer, this means an unprecedented opportunity to save money and reduce dependence on private and municipal utility providers.
The Economics of the Solar Power Revolution
Experts agree that solar energy generation is much more economical today than it was 10 years ago, but the number is significant even compared to five years ago. Installations have been increasing by over 50 percent each year, a number that has remained steady since 2006. The almost unbelievably sharp decline in equipment cost is the major driving factor, but many other facts contribute to the increase in adoption, in both the residential and commercial sectors. In the United States, where solar adoption has quadrupled since 2009, experts attribute the rise in popularity to increased consumer awareness paired with the desire to decrease (and eventually eliminate) dependence on municipal and private utility providers.
“A Massive Restructuring of the Global Economy”
One publication calls this transition “a massive restructuring of the global economy.” While many early solar and wind power system adoptions were driven by government-sponsored incentives, those types of inducements are not what’s pushing solar system adoptions today. The United States has reached (and passed) the tipping point at which the price of solar power (per watt) has dropped from more than $100 in 1975 to 61 cents today. In comparison, when you consider construction costs as a part of the calculation, coal power plants generate electricity at about $2 per watt. It’s easy to see, based on these figures, why this revolution is finally happening.
The Time Has Come to Capitalize on the Numbers
Reduced equipment costs, increased provider competition and insulation from increasing utility charges are compelling reasons to consider installing a solar energy system this year. Another factor highly relevant to the economic revolution regarding solar energy is the low cost of capital. What this means for the consumer is that financing charges are at an unprecedented low. Because equipment and installation are typically financed today (rather than leased, as was the custom originally), the cost of adoption is significantly decreased. This shift in the demand side of the economic equation means that solar makes sense for almost everyone today.
If you’re ready to be a part of this favorable economic shift, Intermountain Wind and Solar is standing by to help you take advantage of the opportunity. Some investment opportunities are simply too good to pass up and the affordable solar revolution is already here.