August 11, 2015 | By RGR Marketing Blog

Solar Energy’s Time Has Come

Back in the early days of renewable energy, solar panels were prohibitively costly. In 1970, the average cost for solar panels was $150 per watt of production capacity. To put that into perspective, the average American home uses about 900 kWh per month.

Adjusted for inflation, that $150 per watt is about $900 in today’s money. With prices like that, it is no wonder that solar took so long to catch on.

Care to guess how much solar panels cost in terms of their capacity in today's market? You may want to sit down. Are you ready? Solar panels now cost about sixty cents per watt. That’s it.

To put it mildly, the cost of solar energy has fallen dramatically. Not just since the 1970s, but even in the last decade. Solar critics used to complain that solar energy was only made economically viable by generous subsidies from the federal government. And for a time, they had a point.

But in this day and age, solar power is ready to stand on its own as an economical, renewable energy source, with or without the Federal Investment Tax Credit. Of course, we’d still recommend taking advantage of the tax incentives while they last.

Solar Energy and the Clean Power Plan

The Obama administration recently introduced the Clean Power Plan, an initiative designed to curtail greenhouse gas emissions and help mitigate the ongoing threat of climate change.

The new plan will require states to reduce their carbon emissions, and includes an incentive program designed to reward states that take a proactive approach and meet their goals ahead of schedule.

Under the old regulations, certain heavy polluters such as aging coal power plants were exempt from carbon restrictions. The new rule will restrict power plant emissions.

It’s no surprise that special interest groups are lambasting the Clean Power Plan, citing economic concerns. And it’s likely true that some of the dirtiest power plants will have to be closed as a result of the new rules.

But if solar energy’s track record is any indication, every watt of coal power replaced with solar will bring substantial economic benefits. Solar energy adoption creates jobs, gives consumers more disposable income via energy savings, and reduces the hidden environmental costs associated with coal and other traditional energy sources.

Why Solar?

When it comes to renewable energy sources, solar isn’t the only game in town. But it seems likely that solar energy will be used to replace the production capacity lost when older power plants are shuttered to meet the strictures of the Clean Power Plan. So why is solar such a strong candidate for “energy source of the future?”

As previously mentioned, solar panels are cheaper than they ever have been, and they’re only going to get more affordable as the necessary economies of scale take shape.

Also, solar is relatively simple to install, and it’s completely scalable. Wind farms require wide-open spaces with relatively high average wind speeds. Hydroelectric plants need powerful water currents, and they’re often criticized for disrupting natural ecosystems. All that’s needed to install solar is a suitable rooftop.

Solar allows utilities to produce electricity closer to the consumption point, lowering infrastructure costs and reducing transmission loss.

The Future Is Bright For Solar

It seems quite likely that many of us will soon source our energy from the sun. And whether we elect to install our own solar panels, purchase power from solar utilities, or participate in community solar farms, there’s no doubt that solar will be a major component in our clean energy future.

[Photo Via: Wikimedia]

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