A Practical View of Solar Energy Cost And Its Impact On Economy

While all this talk of ‘going green’ by advocating solar energy for powering our future is all good, it also needs to be substantiated by proof of sustainability. Yes, environmentalists might have their way, even the rich and famous can take a dab at solar panels for powering their homes. However, can we, the general masses, look at it practically or are we just making much ado about nothing? Now, it would not suffice by simply stating that solar energy has a lot of potential to be the next large scale economy driver. Therefore, let us look at solar energy cost to better understand, its potential impact on us and our economy in the coming years.

The solar energy cost is typically calculated in price per watt. Since the energy source i.e. the sun is a non exhaustible source of power, therefore, the constrictions automatically appear in the technology or material used to trap solar energy and then convert it into our favored unit such as electricity, light, heat or other forms. Hence, from the manufacturer’s side as well as that of the buyer, the solar energy cost of bearing an installation ca n only be realised if the total cost of installation is compared against its electric power output. That will give us an idea of how long it should run to pay back the investment in terms of watts.

Now, the average solar energy cost is around $8-10 per Watt according to 2009 figures in the US. This is further decreased to $3-4 per Watt in the face of government programs as well the low solar energy cost incurred by buying the components in larger volumes. An easier understanding can be obtained if we convert these costs in terms of units of electricity usage. In other words, by converting the data into ‘Kilowatt Hour’ or kWh, we can directly compare it with our existing electricity bills that we pay for using conventional off the grid power.

Hence, that would bring the solar energy cost to 25-40 cents per kWh when bought without applying any cost cuts. This is practically 3-5 times of the current bills we already pay. So, what happened to all the promise? Well, if you consider taking the cost effective approaches to installing a solar energy system by taking into consideration grants and tax benefits from the government as well buying cheap yet quality products for your ‘solar power system’ then the cost drastically come down to 10-12 cents per kWh!

With increasing in solar panel construction technology and therefore the subsequent rise in efficiency of the panels moving beyond the 20% mark, the solar energy cost will come down further. Thus, solar energy seems to be the major energy bottleneck remover once it is realised over a countrywide level.

Solar Energy Cost – How Affordable Can It Really Be For Domestic Use?

There are two schools of thought when it comes to solar energy appliances. One school of thought talks about the fact that current solar energy cost can be only competitive in terms of small sized units that work on solar power such as calculators, water sprinklers, charging devices etc. In terms of larger applications where powering an entire home is considered, they cannot be considered an option due to their high initial investment.

The other school of thought while not denying the above facts, try to focus on the core future needs of the population. It says that while current solar energy cost look to be quite large as compared to the established fossil fuel and hydroelectricity production mechanisms, the fact is that it will only get better as time moves on.

For example, the current solar panel has an efficiency of roughly 20-24% meaning that less than one fourth of the incident sunlight falling on the panel can actually be stored into usable energy. This is the major reason why the solar energy cost for large power generators stand at 25-40 cents per kWh (kilowatt-hour). However, if the solar energy cost is to be calculated for longer periods like 7-10 years, for a residential solar power project, then the results are quite different!

For example, an average construction and instalment cost of solar energy based generator for a 3-bedroom apartment would come to $30,000. Nonetheless, after a period of 7 years, the cost of energy generation would fall from a 40cent per kWh to a meagre 10 cent per kWh as the solar energy cost then would only be the fractional amount being taken from the power grid. Thus, while technology constraints may increase the initial setup cost of a solar power system, the various relaxations in the form of tax benefits, government subsidies and other cuts, make this an attractive proposition for anybody wanting to cut down their expenses over a long term.

In order to take a good look at solar energy cost in today’s terms and therefore the future financial independence, let us look at a practical example. The Lani Bay Hotel in Hawaii has installed a solar powered generator that produces roughly 75kilo-Watt output. Now, in a period of five years, this solar panel array will pay itself off, leaving the hotel with free energy and minimal maintenance costs.

Therefore, if one commercially inclined hotel can take a step looking at the future, then, imagine what the output for a small domestic setup will be after a period of 5 years. In fact, experts peg the solar energy cost of a home based system to be just 4-6 cents per kWh in the future if solar powered alternatives are considered!

Factors That Can Reduce Solar Energy Cost

The electricity bills have proved to be a huge hindrance in our wealth accumulation as certain standard of living requires consumption of electricity in higher amounts and people all over the world want to be liberated from the grid providing power. Harnessing solar energy can just be the solution to our woes. However, one might be compelled to ask how much will solar energy cost. This question is logical, as high solar energy cost is not something we are ready to pay for even if we are aware of the positive impacts it has on the environment.

To calculate the solar energy cost for generating power, we must understand the source of energy. The solar devices directly use the freely and abundantly available sunlight and convert it into various electrical and mechanical forms for the various tasks to be accomplished in the domestic activities. So the solar energy cost of powering home is just the installation cost of various solar devices. The raw materials for solar energy devices fabrication and designing is readily available in the nearby hardware stores and guidelines to build the devices can be accessed from the net or by getting a book which describes the designs of solar cells and windmills to power homes.

Powering homes requires a solar panel, which will contain numerous rows of solar cells. The photovoltaic cells are soldered together to form a network and their number can be adjusted according to the requirements. The materials can be easily found but ordering them over net can further reduce the solar energy cost to power homes. Once the solar panel is drilled and fixed on the roof of the house the only cost will be transferring of electricity. They can be used for charging of batteries and even few generators are available which can be recharged using the solar power. Making of solar heaters to reduce the cost of electrically heating water can be very fruitful and in the long run help to minimise the solar energy cost for heating water. They can be used to produce hot shower bath and also for supplying warm water to swimming pools.

The solar energy cost seems further reduced as the use of radiators can be used in large buildings to keep the interior cool without the help of electric fans or coolers. The solar cooking chimney is also widely accepted to cool the home by utilising sunlight. Hospitals can employ the solar collectors and radiators combination to provide hot water for patients and also cool rooms for operations. Thus the solar energy cost for generating power is minimal and can be very effective backup to save money on electricity bills. So there is no need to worry and you can try it today.