The shift towards clean, cheap and reliable electricity within US is most visible within the speedy proliferation of residential solar. During the year 2008 to 2014, residential, commercial, and institutional rooftop solar grew more than 50% every year.
Residential solar is a great opportunity for renewable energy, with ample sunshine across the nation to make solar a viable option in every state. A well-sited five-kilowatt solar system can generate two-thirds to three-quarters of a typical household’s electricity use.
More and more businesses are being attracted to the environmental benefits of solar power and to the ability to generate their own power. In addition to this, it gives the advantage of fixed and competitive price of electricity that the systems provide.
Residential solar is very cost-effective for homeowners and communities. Decreased technology prices, innovative financing, and emerging networks of solar installers and financial partners have facilitated in driving down the prices for household systems in US by 45% percent from 2010 - 2014.
Additionally, a federal solar investment tax credit returns 30% of the purchase price, state & local tax credits and rebates can then reduce the total cost even further.The economies of scale and technological advances have helped the prices to drop even further. The reduced prices have resulted from improvements in technology and economies of scale among manufacturers.
The Growth Scale
Globally residential solar panel installation has increased gradually. PV costs in US have also been affected by global market conditions, which includes the emergence of lower-priced solar products from China.
However, PV prices in the US have benefitted from reductions in soft costs, like those related to sales, inspection, permitting, connection to the grid and the profit margins of retailers and installers.
The increasing success of solar is also due to innovative ownership structures. Many homeowners are taking advantage of third-party ownership options. Under solar leases or power purchase agreements, electricity customers either pay little or nothing up front for rooftop systems. They get electricity from the systems over a long period at attractive fixed prices.
Residential solar is going mainstream. The reduction in prices and innovative financing structures mean that residential solar is more broadly available.
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