The use of solar power does not harm the environment as fossil fuels burning do. The efficiency of solar energy is obtained from the ratio of input power to output power. The input energy is sunlight while the output energy is electricity. Now-a-days the use of solar energy has drastically increased.
Installation cost of solar panel
In 2013, solar energy was the second largest source of generating electricity comprising of 29 percent as that of natural gas which comprises of 46 percent. Wind energy comprises only 9 percent which is found that the rate has decreased from 41 percent as compared from 2012.
The factors which comprises in installation cost of solar panels
1. Non residential solar market
This market comprises commercial office, school, nonprofit and government installations which grew by 4 percent from last year to 1,112 megawatts of latest installed capacity. The non-residential solar market was very progressive in 2013 for the project developers. Performance in the first three quarters was very less, but was gradually increased in fourth quarter growth. Hence the installation cost of solar panel was drastically decreased in 2013 as of early years.
2. Residential Solar market
The market of residential solar was not so much increased in early days. But it shows a great increase from 2000 and was marked as around 494 MW in 2012 and was more than double in 2013 calculated as 792 MW. This marks that the installation cost of solar panel in 2013 was decreased by 11 percent
As there was an increase rate of solar panel installations, the cost also starts decreasing as there was competition among the contractors itself. With 2837 MW increased in the solar panel installation capacity, the utility segment experiences a growth in their market in 2013. Hence the rate was decreased $1.96 per watt.
Earlier the price for solar panel installation was around $38000 which was then decreased in 2013 to $34750.
Later the average price fell to approximately to $3.57 per watt.
4. Installation cost reduction
The installation cost of solar panel in 2013 was fallen up to 50 percent its previous rates. Earlier the project which where costing around $6.1 per watt in 2009 was then reduced in 2013 to $3.1 per watt.
Also the solar power purchase agreement was reduced due to increase in the number of installation.