SOLAR ADVANTAGES

Solar photovoltaic (PV) generated electricity costs are a function of specific technology used, the installed system’s capital cost, the financing structure used, and support incentives.  Today's increasing cell efficiencies, falling module prices, utility rebates, the 30% federal grant or tax credit, along with accelerated depreciation schedules combine to make the levelized cost of solar generated electricity 5 to 40% cheaper than utility electricity in many markets.

 

The cost of solar generated electricity remains stable over the life of the system while the cost of traditional utility electricity increases.  Solar PV has no variable operational costs; thus, the cost of solar generated energy is fixed over time. Comparatively, the variable costs for fossil fuel fired plants may comprise more than 50 percent of the cost of the generated electricity; these are subject to market-based fluctuations in fuel and labor expenses.  According to the Energy Information Administration (EIA), average retail electricity rates have increased across all 50 states an average of 3.9% annually for the past ten years.  In 2007, the average price of electricity increased by 10 percent or more in 5 States.

 

In general, the value of solar exceeds its simple avoided cost of electricity.  Solar PV systems produce their maximum output at times that coincide with peak power demand.  Thus reducing both demand load and replacing capacity during expensive midday peak hours.

Electricity produced by solar generation comes without the environmentally damaging byproducts of greenhouse gases and other harmful air pollutants.  Consumers are increasingly making purchasing decisions based on companies' environmental practices, including electricity sources.  Solar also provides a hedge against future carbon legislation and resultant price volatility; thus giving an advantage to companies who use renewable energy.

The manufacture, installation, and maintenance of solar energy systems employs tens of thousands of Americans domestically in jobs that for the most part cannot be outsourced.  On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act (ARRA) into law.  This unprecedented economic stimulus package supports renewable energy and energy efficiency technologies with billions of dollars in incentives.