The Economics of Solar Technology

Tuesday , 25, February 2020 Comments Off on The Economics of Solar Technology

Solar technology is becoming more and more affordable by increasing solar cell technology and supply chain consolidation. Taking steps to install your own solar power system can increase the value of your property as well as improving the environment. Doing it yourself is another way to reduce the cost of solar panel installation. You can find more about Solar Industry Research Data via online sources. 

Energy Payback Time On Investment

The good news is the energy payback time of solar installations decreased from day today. In 2000, the payback period is 8 to 10 years. In 2006, this number decreased to only 3 to 5 years. In the thin-film installation, this figure is even lower, with an estimated 1-1.5 years.

Electricity cost

Photovoltaic industry began to adopt the Levelized cost of energy (LCOE) as the unit cost. A 10MW installation in Arizona, for example, has the LCOE of about $ 0.15 to 0.22 / kWh in 2005. The panel efficiency can be improved by adopting technologies such as solar tracking system, wherein, the solar panel to maximize exposure to the sun by moving perpendicular to sun.

Recent technological developments show that by concentrating solar technology, the cost of solar installation can be reduced to grid parity. solar collectors concentrate sunlight using reflectors and mirrors. Grid parity is achieved when the cost to install solar on par with oil and natural gas.