Learn How To make Your Own Solar Panels (here)
According to recent news articles, prices for roof top solar panels for homes have been dropping dramatically in recent months due to excess supply. Total installed solar panels prices after government incentives for installation of home solar systems in the United States are expected to drop by 30% to 50% year-over-year between 2008 and 2009. This can happen if prices for solar panels continue to fall as expected, and when coupled with dramative new government tax incentives which came into effect recently.
The cost of solar systems has been propped up in recent years due to a shortage of silicon which is a basic raw material for making a solar panels. Because off the major incentives paid by governments in Europe in past years, mainly in Germany and Spain, manufacturers of solar panels responded by installing a tremendous amount of capacity. Then, in 2007 European governments allowed the incentives to expire, and the same thing happened in the United States. Consequently the demand for rooftop solar systems began to drop dramatically, resulting in a glut of supply.
Due to the basic laws of supply and demand, lower demand coupled with excess supply is resulting in a drop in the price for installation of rooftop solar panels for homes by as much as 20 to 30%. However, the reinstitution of tax credits for alternative and renewable energy installations by homeowners in the United States is a part of the new economic stimulus package passed in February. This, coupled with lower prices will likely result in a reinvigoration of demand for rooftop solar systems for homes.
Basically, the new tax credit will enable homeowners to offset the cost of purchase and installation for rooftop solar systems by 30% through 2016. This credit will be fully available regardless of income level or alternative minimum tax status. So, with the reduction in price for solar panels due to a glut of supply, the effective cost of installation for rooftop solar systems is expected to be reduced as much as 50% over the near term from what it was just a year or two ago.
As an example, the California market in the United States has heretofore counted for about 70% of the total residential rooftop solar power system market. In 2007. For example, the total installed cost for a typical 4 kW home solar energy system cost a homeowner about $23,000 after state and federal tax incentives. In 2009, if prices continue to drop and stay down as expected, the new total installed cost after implementation of the new federal tax incentives is expected to be about half that at a cost of $10,000-$12,000
So, the opportunity to install rooftop residential solar systems to enhance your energy efficient home plans has never been better. The question remains, however, whether or not the economic recession will continue to dampen demand. Up through 2008, the installation of the solar power in the US have been growing at a rate of 25 to 30% per year. But due to the tight credit and economic difficulties the current expectation is that growth will be only about 20% in 2009 regardless of the extraordinary incentives and lower cost of installation.
Clearly, if you have the economic wherewithal to do so, there is no better time than the present to invest in an alternative renewable residential solar power system.
By Rich Keesling www.energyefficienthomeplans.net
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