Year over year, the cost of solar panels increases. Why? Most people think of solar as just another emerging technology. Typically, the life cycle of any new technology leads to improvements and innovations that gradually drive down the price of that technology. Think virtual reality, for example. When that technology was first developed, first adopters paid high prices to experiment with and enjoy the new tech. Now VR headsets are common Christmas and birthday presents. We raffled one off in our office last month! Looking at that well known trend, most people expect the cost of solar panels to come down in the future as well. But that is a mistake.
When thinking about solar panels, instead of using technology’s price trends to predict the future, use the price of power instead. Historically, the cost of power rises year over year, and those increases have been significant over the past decade. Solar panel manufacturers know this too. They know that when you purchase solar panels, you are purchasing the ability to produce power. You will therefore measure what you are willing to pay for panels against what you pay for power now and what you will likely pay in the future. Therefore, as the price of power rises, so will the price that manufacturers can charge for panels.
This is why we recommend that people purchase their panels now. The panels are not going to get cheaper, only more expensive. On the other hand, the federal and state incentives will go away, meaning that the cost to purchase a system will go up even more. If you know anyone who has not yet made the switch to solar, do them a favor. Have them reach out to us for a free energy savings report. They will thank you today. But they will be even more grateful 5 years from now when they see how much the cost of power, and solar panels, have risen.