The cost of solar energy has been steadily decreasing over the past decade, and according to the Bloomberg New Energy Finance (BNEF) report, it is projected to drop by a third by 2030. This means that now is the perfect time to invest in solar energy, as there is no additional benefit in waiting any longer. When it comes to solar energy, the primary cost comes upfront when purchasing the necessary equipment. This includes solar panels, inverters, and lithium batteries.
Depending on the size of your system and where you live, it can take 10-20 years to reach the break-even point of a solar installation. There are many factors that influence the cost of a home solar panel system, such as the size of the system, the type of equipment used, and local regulations. In some areas, homeowners may receive rebates at higher retail rates for their electricity under net metering rules. However, as solar energy expands, these policies may change and solar owners may receive compensation closer to wholesale rates.
Solar energy also requires a lot of capital and existing coal plants cannot easily slow down in the afternoon when solar energy increases. To make sure that investing in solar energy makes financial sense for you, it is important to do a final calculation and assessment. It is also important to keep in mind that solar panel prices can fluctuate. The federal government has provided incentives such as the Investment Tax Credit (ITC) to help decrease installation costs.
However, this trend is expected to be temporary and as long as the sun continues to shine, solar energy will remain a good investment in the future.