When a new type of technology first hits the market, it's usually pretty costly. However, shortly after the initial release, the price typically begins to drop. There are a few reasons for this. But, the main reason is that when new technology grows in popularity, more companies start to produce it and the supply begins to level out with the demand.
Another key factor in cost reduction is increased efficiency due to product development and production.
Solar panels differ from other ways of obtaining energy in the sense that they are largely controlled by consumers. People can't just go out and drill for their own oil, but with solar technology, they can harvest their own sunlight. For this reason, solar energy costs follow the same pattern as other types of technology. They go down over time while unrenewable energy sources, serving the interests of a few instead of the many, continue to rise in price.
From the 1980s Onward
When it comes to cost reduction in solar energy, the statistics speak for themselves. In the year 1980, the dream of switching to renewable energy was out of reach for a lot of people. The price point meant that only a select few could afford the technology.
Since then, the cost of solar energy devices has fallen by a massive 97%. Today, the cost of setting up solar panels is more economical than it has ever been in the past. Solar energy is fast approaching the tipping point where its economic advantages will surpass those of gas, oil, and coal - set up costs included.
This is excellent news for those who want to reduce their electric bills as well as for the health of the planet. These lower costs and increases in accessibility have allowed record numbers of people to take an active stand against unsustainable energy sources.
Contributing Factors to Solar Panel Cost Reduction
- The introduction of policies and tax credits that support green energy
- Higher demand allowing materials to be purchased in bulk
- Increased research leading to greater efficiency in production
- Technological advancements allowing for less material to be used
The Time to Switch is Now
If you have been thinking of going solar, the price points of today's technology have made it easier than ever to move forward. If you combine the all-time low cost of solar panels with our flexible payment plans, the installation fees will hardly put a dent in your wallet.
To learn more about going solar, contact Lumina Solar today!