Harnessing Sunshine: Unraveling the Decline in Solar Panel Prices and Advantages of Solar Plus Storage Systems

Hello, solar enthusiasts and eco-conscious folks! Welcome back to my blog. Today, we have some exhilarating news to share about recent developments in the world of solar, particularly about the residential solar industry in the U.S. I aim to provide some insights that are especially helpful if you are considering solar panels for your home or expanding your current solar array for home power.

In the recent 18th edition of the EnergySage Marketplace Report, there have been some interesting revelations showing that despite persistent inflation, rising loan fees, and the impact of the California NEM 3.0 policy, solar prices dropped for the first time since 2021. That’s right, the average cost per watt fell by 3.5% to $2.80 which is in line with solar pricing from mid-2020 and only 4.5% higher than the lowest point from summer 2021.

What’s even more interesting is that this drop isn’t attributed to a single solar company or a couple of leading solar companies. Rather, it’s a trend observed across the board. Local, vetted solar companies have been submitting competitive quotes, thereby driving down the prices overall.

However, everything isn’t all rainbows and sunshine in the solar sector. Financing solar projects has become a bit pricier. The average fee on the most quoted solar loan product – a 25-year loan with a 3.99% interest rate, reached 47% of the cash project cost in the second half of the year. But even this doesn’t stifle the appeal of solar arrays for homes.

Shifting gears to battery storage products, there’s been a marked increase in consumer interest. In the second half of 2023, 61% of solar quotes on EnergySage included a battery, and for the first time since 2020, quoted storage prices fell by 6.4%. This trend, without a doubt, shows the public’s growing awareness and inclination towards enhanced capacity and security with their solar setups.

In light of California’s net metering policy, the interest in battery energy storage systems soared in the state. The sun-drenched state, though the leading rooftop solar market, witnessed a slump after the NEM 3.0 policy was enacted. However, this has led to a subsequent rise in the adoption of battery storage systems that offset the policy repercussions.

Consequently, shopping patterns for specific batteries have evolved rapidly. However, popular choices remain to be brands like Enphase, Tesla, and a rapidly growing choice, FranklinWH. The price drop in battery storage can be attributed to these brands, notably Tesla and FranklinWH, both of which maintain competitive pricing around $1,100/kWh-stored.

The report further sheds light on the price by state trends; the top five solar states are California, Florida, Texas, Colorado, and Nevada. Except for Colorado, each of these states had median quoted prices below the national median price. So, if you happen to be in any of these states, catching onto the solar wave might just be a steal for you!

In conclusion, the momentum in the solar industry is building up and it’s an exciting time to be part of this ‘solar revolution’. Times might seem tough, but the solar industry proves resilient, showing that going solar is a unique mix of serving the planet and your pockets! I’ll be here to keep you updated on more developments in the world of solar, stay tuned!

Original Articlehttps://pv-magazine-usa.com/2024/02/22/u-s-residential-solar-sees-price-drop-strong-interest-in-storage/

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