In the past twenty years the price of solar energy has dropped significantly. In fact since 2000, the cost of installed solar power has dropped by 75%.
So why is solar power becoming less expensive? This is due to a variety of factors.
Manufacturing costs have become cheaper leading to overall more affordable panels.
Advanced technology has greatly impacted the pricing of solar panels. New manufacturing techniques have led to the development of more efficient and compact designs which require less resources and materials. With less resources and materials needed manufacturers are able to save money and pass those saving on in lower prices.
Soft costs have lowered as well. (Soft costs are the costs that are not directly associated with the purchase of solar panels, inverters or other equipment.)
Advertising and marketing costs have greatly decreased thanks to the use of internet and social media. Companies are able to advertise for less now versus having to rely on the use of door-to-door salespeople like they did 20 years ago.
Installation of solar panels has reduced in both cost and time. Modern solar panels are lighter and more compact making installation easier, quicker and less expensive. Installation of a standard panel takes approximately four hours today whereas a decade ago, the same installation would have required closer to 16 hours.
It is estimated that the price of solar panels will continue to fall in the coming years as technology continues to advance this energy source.