Will Solar Power Get Cheaper?

Many people considering a switch to solar power are well aware of the long-term savings they can expect. With drastically reduced utility bills and an energy system only dependent on free sunlight, it's easy to see the financial upside to going solar. On average, someone who switches to solar power in the U.S. saves approximately $1,500 in the first year alone.

The major obstacle, for most, is the upfront cost of installation. The average price for a 6kW solar system for a 1,500-square-foot home in the U.S. is $18,500. An 8kW system for a home of similar size costs $24,552, on average.

At the moment, this makes switching to a solar power energy system too cost-prohibitive for many. But what about in the future? Will solar power get cheaper over time?

Solar Power Costs in the Future

To put it simply - yes. The cost of solar power systems will most likely get cheaper over time. In fact, if you look at the past decade, you will see a very clear trend that indicates this. Lithium batteries, inverters, and even solar panels themselves have all seen drastic reductions in cost over the past 12 years. Just how drastic? The cost of these crucial solar system components has dropped by almost 90% since 2010.

The reason behind these significant price drops is the same as nearly any other technology - advancements. Just as it is with TVs, cellphones, and various other electronics, the technology behind solar panels becomes cheaper as its development becomes more streamlined. Today's solar panels are far more efficient than the ones produced a decade ago, which means less of them have to be installed to generate the same amount of energy, thus leading to a lower installation cost.

While it's likely we'll continue to see price drops in solar systems in the future, chances are they won't be as drastic as we've already seen. As these systems become increasingly efficient, they're less likely to make overwhelmingly significant developments, which were key contributing factors to past price reductions.

As it stands now, the price of solar power will most likely continue to decrease, but at a much slower rate than we've seen in the past. Some projections estimate that the cost could drop by as much as one-third by 2030, but it's up to you to decide if that's worth the wait. After all, while you wait for the cost of a solar system to drop, the electric bills are going to keep piling up.