Solar energy is a rapidly-growing industry, and for good reason. Solar power is a renewable energy source that can be used to generate electricity, providing a clean and environmentally-friendly alternative to traditional fossil fuels. But what is the cost of solar energy per kwh?
There are a few factors that go into determining the cost of solar energy per kWh, including the type of solar panel, the size of the solar array, the location of the solar installation, and more. In general, though, the cost of solar energy ranges from $0.10 to $0.15 per kWh. While it may appear to be a lot, keep in mind that the cost of solar has been decreasing fast in recent years and is likely to continue. Additionally, the cost of traditional fossil fuels is expected to continue to rise as supplies dwindle and environmental regulations become stricter. over time, solar will become increasingly more affordable.
The Cost of Solar Energy Has Been steadily Declining
One of the main reasons why the cost of solar energy has been dropping is because the technology involved in solar panels has become more efficient. In the early days of solar power, photovoltaic (PV) cells were only able to convert around 6% of sunlight into electricity. Today’s PV cells are nearly twice as efficient, with some capable of converting up to 40% of sunlight into electricity. As PV cell efficiency continues to improve, the cost of solar energy will continue to drop.
Another factor that has contributed to falling solar prices is an increase in economies of scale. As more and more people install rooftop solar panels, manufacturers are able to produce PV cells at a lower cost thanks to increased demand. Additionally, advancements in technology have led to automated production lines that can churn out PV cells quickly and efficiently.
The final factor that has played a role in driving down the cost of solar energy is government incentives. In many countries around the world, governments are offering tax breaks and other financial incentives to encourage homeowners and businesses to install rooftop solar panels. In some cases, these incentives can cover up to 30% of the total cost of going solar.
As you can see, the cost of solar energy per kilowatt hour has dropped significantly in recent years and is expected to continue to decline as technology improves and more people adopt solar power. Solar is becoming an increasingly appealing choice for households and companies seeking a substitute energy sources such as coal and natural gas.
Solar power is becoming increasingly more affordable thanks to declining costs associated with PV cell efficiency, economies of scale, and government incentives. And as traditional fossil fuels become more expensive due largely in part to environmental regulations, solar is expected to become even more competitively priced in coming years. If you’re considering making the switch to renewable energy, there’s never been a better time than now!