Details You Need To Discover About Solar Power Costs

There are 2 important factors which govern solar power cost and they are quite simply, the assembly cost of the solar panels and the installation cost of the solar system in your home.

Solar panels may well be green, eco-friendly and also help save our planet but until they can compete in the energy market place then they will never be widely used. A new coal-burning plant can deliver electricity at $2 per watt and making this the benchmark number that the solar experts want to match.

For the last 20 years scientists have been developing innovative and cheaper designs of solar panels. It is the Silicone based photovoltaic panels that have dominated the industry and they sell for approximately $3 a watt, however this is before installation.

For some time there was a real scarcity of silicone and although the demand for solar panels was increasing, the solar panel producers were not able to meet that demand. Now although there is an ample supply of silicone, nevertheless the process of refining it to make the semiconductors is a costly process and there are not too many facilities that do this. The few factories that are able to manufacture this refined silicone have a monopoly on the supplies meaning that even though the demand is high they can keep the price inflated.

The price of refined silicone is one of the main factors in the cost of solar panels. The main thrust of research taking place today is in improving ways to lower the quantity of silicone that is needed to produce a solar panel. There is also research taking place in using alternative cheaper materials that are equally efficient. There are certain organic materials that have semiconductor properties which can be used rather than silicone.

The expense of installation will vary quite significantly depending on whether you do it yourself or if you call in a professional installer. To install a solar powered system in your home using a specialist installer can cost you between $10 - $12 per watt. If you install the solar system by yourself then it will probably cost you about $4 per watt.

While the initial cost of installation of a home solar power system would still be fairly expensive it is inevitable that soon, given the astounding advancements that are taking place, the cost will come down. In the mean time, governments around the world are encouraging and subsidizing the use of this technology by giving tax savings and credits for home owners who install solar power systems.

So if you install your solar power system yourself at the cost of about $4 per watt and then claim all of the tax savings and credits that are available in your area, then your solar power cost may not be so far from the $2 per watt benchmark of the energy delivered by the coal-burning plant.

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