A recent report has revealed that solar energy systems are becoming a lot more affordable, and are thus becoming much more practical opponents to traditional energy sources, leaving many in North America more than ready to compare solar energy to their traditional energy suppliers.
Over the course of 2015, US overall pricing for solar photovoltaic systems dropped 17 per cent with the greatest declines hitting the utility fixed-tilt sector. Residential system prices also experienced a downward trajectory, although with some leveling off in connection to soft costs. Residential prices dropped to $3.50 per watt, while utility fixed-tilt projects hit an average $1.33 per watt, and utility tracking projects hit $1.54 per watt. These price drops are not only making solar energy a compelling alternative to traditional US energy sources, but are encouraging many Albertans to compare solar energy as well.
Why are solar prices on the decline?
Solar prices are actually declining in the face of increases in soft costs, which account for close to 65 per cent of solar energy system costs. These soft costs include engineering, permitting, and on-site labour.
However, while soft costs have posed a bit of resistance to the overall decline in solar energy pricing, and while they are creating greater challenges for certain sectors, like residential solar system pricing, the overall cost of solar energy systems is experiencing a decline that is more than a little significant when you compare solar energy with an oil and natural gas sector that is experiencing significant economic turbulence.
The decline in solar energy pricing has a lot to do with technological innovations that are enabling companies to increase solar productivity using more cost-efficient materials. However, the price drop has also been made possible through aggressive cost reductions in terms of hardware costs, system costs, and regulatory costs, as well as soft costs, and all of these attempts reflect an ongoing effort to enable consumers to better compare solar energy costs to more traditional energy sources.
What are Alberta’s Solar Energy options?
Whether you are looking to compare solar energy options for your home, or whether you are looking towards solar energy as an energy alternative for your business, there are a lot of advantages to going solar. Getting into the solar energy market is a good way to offset your natural gas or electricity consumption, and if you own a business, working to achieve EcoLogo or LEED certification can have its benefits as well. Whatever your reasoning, you can find your way into the solar energy market through RECs.
RECs refer to renewable energy credits, otherwise known as renewable energy certificates, green tags, or green credits, and they represent the value of sourcing renewable energy from solar PV systems. Each REC represents a megawatt-hour of energy produced by a renewable source, like a solar photovoltaic system. When purchased, the amount of energy that has been consumed from traditional sources is offset by introducing solar energy to the shared power grid. Many local utility companies offer green pricing programs that rely on RECs, but the price of the REC itself isn’t fixed, which means the purchase price may fluctuate based on demand.
If you think it’s time to compare solar energy prices to your traditional energy source, contact us at EnergyRates.ca today. We will help you compare the costs of solar energy through different companies so you can find the best solar energy rate for you or your business.
