Solar Prices Free Fall to an Affordable Level

Prices have dropped drastically in the solar world. Thanks to tax credits, net metering, and incredible loan programs, solar has become affordable for homes and businesses across the United States. According to researchers from the National Renewable Energy Laboratory and Lawrence Berkeley National Laboratory, the cost of installing a solar photovoltaic (PV) system fell 6 to 14 percent annually from 1998 to 2012. Of course, these costs vary across the U.S. depending on factors, such as "market size and maturity, varying incentives, regulatory costs, and taxes" (Cusick, "DOE Labs Find Solar Prices in Broad Decline").

Solar PV installation prices depend heavily on the cost per watt of the panels, which have shown to drop significantly over the past few years. "The Average installed price of residential and commercial PV systems completed in 2012 decreased by a range of roughly $0.30/W to $0.90/W" each year according to the Lawrence Berkeley National Lab's Tracking the Sun report. The report also claims that solar PV prices were at $12.00 per watt in 1998, and that most of the price reductions occurred within the past 4 years. According to the Solar Energy Industries Association's (SEIA) Quarter 2 2013 U.S. Solar Market Insight Report, the average residential PV price across the U.S. is currently $4.93 per watt, marking a 16% drop from the previous year. Reductions in non-module costs, including labor, permitting, mounting hardware, and inverters have also contributed to the overall decline in solar prices.

According to the Q2 Solar Market Insight Report, "the market success brings U.S. solar electric capacity to 9.4 gigawatts, which is enough to power more than 1.5 million average American homes." U.S. installations grew 15% since quarter 1 of this year, totaling 832 MW. As prices continue to drop, more families and businesses in the U.S. will be able to utilize solar as their source of electricity. The increase in the solar market to 120,000 jobs across the U.S. has shown the tremendous growth and success of the industry, and we hope to see the number continue to skyrocket as prices continue to plunge!

Blakey Hall Continues to Invest in Solar

Blakey Hall's 50 kW solar PV system

Last year NC Solar Now installed a 50kW solar PV system on Blakey Hall Assisted Living Community's rooftop located in Elon. Constructed in two phases, the array consists of 196 panels, serving all 56 residential units within the building. Last year, John Ketcham, owner of Blakey Hall, said that the government incentives made the investment a reality, claiming that the incentives were powerful enough to "cause a business guy to take action" (The Times News). Ketcham acted fast and signed the contract for his installation before Jan. 1, 2012 while section 1603 of The American Recovery and Reinvestment Act of 2009 was still in effect, which provides capital for homes or businesses that have renewable energy generation projects. With the additional help from state and federal tax credits, the $250,000 solar PV project will recover 91% of its upfront cost, said Greg Olenar, Co-President of NC Solar Now. Additionally, the return on investment will be about 4 years, and with the 25 year warranty and the 35-40 year life expectancy of the panels, that seems very timely. The community will also receive a credit from Duke Energy Progress for the electricity generated that is not used, a process called net metering. Sounds like a great investment if you ask me! The community went a step further and had NC Solar Now install a solar thermal system on their rooftop to heat water for the kitchen, laundry room, and special care unit. Olenar said the system will save the community $6,000-$7,000 per year.

Satisfied with his investment, Ketcham decided to invest once again. NC Solar Now is currently working on a solar thermal system for two other buildings in the Blakey Hall Community, one of which was completed last week. Ketcham encourages other businesses to take advantage of the federal and state tax credits and grants. The credits make solar affordable for almost every business and homeowner and they should be taken advantage of to continue to increase the use of solar throughout the state!

Blakey Hall's new solar thermal system

EZ Mount: Protecting Your Roof!

A lot of homeowners are hesitant when it comes to installing a solar Photovoltaic (PV) system on their rooftop. This is because the installation process involves drilling into a roof to mount the panels. Holes in a rooftop obviously bring about the possibility of water intrusion, which can result in health problems from mold growth and structural damage to a roof or even an entire home. Sunmodo understands these concerns and how crucial it is to make sure a rooftop is waterproofed following a solar installation.

NC Solar Now uses Sunmodo's product, the EZ Mount. This mounting kit includes a rectangular piece of metal that is attached to the area drilled into the roof to completely cover the penetrated area and eliminate the possibility of a leak (view image below). The L-foot is then bolted to the EZ Mount, which supports the racking system. Back in the 1980s, installers didn't realize the need for waterproofing methods. They simply drilled a hole through the roof, filled it with a sealant, and then bolted down the L-foot without any protective material surrounding the penetrated area. EZ Mount has been certified under IAPMO ES for IBC and ICC compliance, and has complied with UL 411 Watertight criteria. Sunmodo's product has shown to be very successful in our installations, which is why we continue to use their 100% compliant and reliable product to keep our customers' roofs protected!

Microinverters Heating Up in the Solar Industry

Solar Photovoltaic (PV) microinverter shipments are predicted to quadruple in 2017, reaching 2.1 GW per year worldwide according to the report, The World Market for PV Microinverters and Power Optimizers - 2013 Edition" by IHS Electronic & Media. Microinverters convert the direct current (DC) electricity generated by each solar panel into alternating current (AC) power to be compatible for household use. Although more expensive than conventional inverters, they have a higher energy yield, and are more efficient and reliable. Microinverters prevent the "Christmas light effect" that conventional inverters face, in which the entire system will fail with just one error in part of the system. Each panel has its own microinverter that converts the electricity as it is generated. Therefore, shading or any electrical problems will only affect that one panel, instead of the entire system. This makes them more efficient and reliable, whereas conventional inverters are only as strong as the systems weakest link. 

Until recently, microinverters were restricted to the U.S residential market, but the suppliers are striving to expand the efficient technology to new regions and commercial markets. Regions with new solar PV markets like Australia and the United Kingdom are great targets because they are open to new technology options. The U.S. accounted for 72% of global microinverter shipments last year, but that number is expected to fall to 50% by 2017 due to the expansion of the microinverter market in Europe and Asia. The rise in new companies and growth in supply of microinverters are increasing competition and therefore, dropping costs. According to the IHS report, microinverter prices will drop by 16% this year, yet revenue will still increase to more than $250 million, and will reach $700 by 2017. 

Enphase Energy, the world's 2012 leading microinverter supplier and the supplier of NC Solar Now, is facing growing competition and has resulted in targeting new markets, specifically commercial projects. They recently announced that they will be doing a 2MW installation in Canada. Almost 1/3 of global microinverter shipments will be going to commercial projects in 2017, compared to only 9% in 2012, mainly systems sized between 10-11 kw. Microinverters have become the technology of choice in the solar world and will continue to make solar systems more efficient and reliable as they are welcomed in commercial projects all across the globe.