A: A residential solar PV system can cost anywhere from $25,000 to $35,000, on average. Because of the high cost, a power purchase agreement (PPA), loan, or lease are popular options for financing a solar PV system. Naturally, there are benefits and drawbacks with each option. We won’t cover them in detail here, but you can learn more in our article “Financing Options for Solar Power Explained.”
The PV industry is beginning to adopt levelized cost of electricity (LCOE) as the unit of cost. The electrical energy generated is sold in units of kilowatt-hours (kWh). As a rule of thumb, and depending on the local insolation, 1 watt-peak of installed solar PV capacity generates about 1 to 2 kWh of electricity per year. This corresponds to a capacity factor of around 10–20%. The product of the local cost of electricity and the insolation determines the break even point for solar power. The International Conference on Solar Photovoltaic Investments, organized by EPIA, has estimated that PV systems will pay back their investors in 8 to 12 years. As a result, since 2006 it has been economical for investors to install photovoltaics for free in return for a long term power purchase agreement. Fifty percent of commercial systems in the United States were installed in this manner in 2007 and over 90% by 2009.
“As Trump’s Tariffs Raise the Cost of Solar Installations, Elon Musk and Tesla Cut Their Prices” • Tesla, unmoved by tariffs, is reducing prices on its solar systems 10–20% in recognition of the progress it has made streamlining its solar sales process by integrating Tesla Energy products into its existing high-traffic storefronts. [Red, Green, and Blue]
The world of small wind turbines is much like the wild-west of a century ago: Anything goes, and no claim is too bold. Wind turbine manufacturers will even routinely make claims that are not supported by the Laws of Physics. Energy production claims are often exaggerated, as are power curves. In fact, this is the rule, not the exception. Those manufacturers that tell the truth are the exception. Many manufacturers have never tested their wind turbines under real-world conditions. Some have never tested their turbine before selling it to unsuspecting customers. We are not joking! Because we sell grid-tie inverters for small wind turbines we have a front-row seat when it comes to actual operation of turbines of many makes and models. It turns out that some do not work; they self-destruct within days, and sometimes run away and blow their inverter within seconds after being turned onfor the first time (clearly nobody at the factory bothered to ever test it).
This solar resource map provides a summary of the estimated solar energy available for power generation and other energy applications. It represents the average daily/yearly sum of electricity production from a 1 kW-peak grid-connected solar PV power plant covering the period from 1994/1999/2007 (depending on the geographical region) to 2015. Source: Global Solar Atlas]