Does Anyone Want Low Cost Solar Panels?
Everyone is accustomed to the price of everything going higher and the fluctuation of gasoline prices just makes people go crazy.
That makes this news become especially refreshing.
The price of everything is not getting higher.
We are experiencing a drastic reduction of prices in the solar photovoltaic market.
Accordingly, the reduction has created an opportunity to buy low-cost solar panels.
We are going to discover the reasons for the precipitate drop in prices for PV panels and the benefits to be garnered by the average business or home owner.
PV panel cost has been on a downward trajectory for several years.
There are many reasons for this fact.
The increase in the number of solar manufacturers and the growth in the overall size of the solar market have been two major factors.
Another explanation is the large Government subsidies from around the world.
This was especially true for Europe and China.
However, this does not fully explain the consequences of the events that are transpiring at this moment.
The price of solar panels has fallen by 50 per cent in the last 12 months.
Oversupply in the solar panel market is a huge problem for the industry right now.
The reasons for this oversupply are varied and many.
One cause is the economic problems in Europe and the resulting recession in many of the European Union member countries.
Recession has reduced and diminished the Government subsidies that were earmarked for renewable energy development.
Also, the European governments themselves have reduced spending for public works projects that included solar products.
Another reason is China's continued efforts to ramp up their production of PV panels.
The Beijing Government has continually been offering low-cost loans, cheap taxes, and free land to solar manufacturers.
These types of subsidies almost guarantee that the oversupply problems for the solar industry are not going to be relieved anytime soon.
Next, we will address what the oversupply problems mean for the industry as a whole.
Whenever an oversupply occurs in a particular segment of industry, three things are going to happen over time.
You are going to see lower prices for the particular products, a growing market, and greater investments.
The solar industry will be no exception.
Low cost solar panels are going to be the norm and the prices will probably be pressured lower still.
The industry will consolidate and only the strong will survive.
Their pain is our gain, so what benefits can the home or business owner expect? The average business and home owner can expect to save money on a solar energy system.
A lot of money! More importantly, there are added benefits we can enjoy: • Social Benefits- We can reduce air pollution, reduce our dependency on fossil fuels, and help our utility providers with more power during peak periods.
This helps the environment by curbing the need for additional conventional power plants.
• Increase your home's value- A recent study by the NBER estimated that a home's resale value is increased by 3 to 4 per cent when a solar array has been installed.
Two types of value are added; the investment value (just discussed) and the consumption value.
The consumption value can be enjoyed every month through lower electrical bills and the investment value is longer term.
NBER stated that the total cost of a solar panel system is usually recovered upon the sale of your home.
In conclusion, there are many good reasons to consider the purchase of a solar array for your home or business now.
There is a 30 per cent Federal tax credit available to anyone in the U.
S.
and depending upon your area, state and local rebates or credits are also available.
The majority of solar equipment suppliers also offer financing or lease options.
This is a very good opportunity to take the advantage and buy some low-cost solar panels.
That makes this news become especially refreshing.
The price of everything is not getting higher.
We are experiencing a drastic reduction of prices in the solar photovoltaic market.
Accordingly, the reduction has created an opportunity to buy low-cost solar panels.
We are going to discover the reasons for the precipitate drop in prices for PV panels and the benefits to be garnered by the average business or home owner.
PV panel cost has been on a downward trajectory for several years.
There are many reasons for this fact.
The increase in the number of solar manufacturers and the growth in the overall size of the solar market have been two major factors.
Another explanation is the large Government subsidies from around the world.
This was especially true for Europe and China.
However, this does not fully explain the consequences of the events that are transpiring at this moment.
The price of solar panels has fallen by 50 per cent in the last 12 months.
Oversupply in the solar panel market is a huge problem for the industry right now.
The reasons for this oversupply are varied and many.
One cause is the economic problems in Europe and the resulting recession in many of the European Union member countries.
Recession has reduced and diminished the Government subsidies that were earmarked for renewable energy development.
Also, the European governments themselves have reduced spending for public works projects that included solar products.
Another reason is China's continued efforts to ramp up their production of PV panels.
The Beijing Government has continually been offering low-cost loans, cheap taxes, and free land to solar manufacturers.
These types of subsidies almost guarantee that the oversupply problems for the solar industry are not going to be relieved anytime soon.
Next, we will address what the oversupply problems mean for the industry as a whole.
Whenever an oversupply occurs in a particular segment of industry, three things are going to happen over time.
You are going to see lower prices for the particular products, a growing market, and greater investments.
The solar industry will be no exception.
Low cost solar panels are going to be the norm and the prices will probably be pressured lower still.
The industry will consolidate and only the strong will survive.
Their pain is our gain, so what benefits can the home or business owner expect? The average business and home owner can expect to save money on a solar energy system.
A lot of money! More importantly, there are added benefits we can enjoy: • Social Benefits- We can reduce air pollution, reduce our dependency on fossil fuels, and help our utility providers with more power during peak periods.
This helps the environment by curbing the need for additional conventional power plants.
• Increase your home's value- A recent study by the NBER estimated that a home's resale value is increased by 3 to 4 per cent when a solar array has been installed.
Two types of value are added; the investment value (just discussed) and the consumption value.
The consumption value can be enjoyed every month through lower electrical bills and the investment value is longer term.
NBER stated that the total cost of a solar panel system is usually recovered upon the sale of your home.
In conclusion, there are many good reasons to consider the purchase of a solar array for your home or business now.
There is a 30 per cent Federal tax credit available to anyone in the U.
S.
and depending upon your area, state and local rebates or credits are also available.
The majority of solar equipment suppliers also offer financing or lease options.
This is a very good opportunity to take the advantage and buy some low-cost solar panels.