Dollar per watt solar energy

Always wanted to go-green, but could never afford to? Well, you’re not alone.

In the past, high costs have been one of the solar industry’s main challenges. The high cost of production has hindered its expansion and reliability. But in February 2009, a new milestone was reached in the solar industry: cheap renewable energy.

A solar panel maker in Arizona announced that it had reduced its production costs to less than $1 a watt, down from $3 a watt. What does that mean?

It means the savings will be passed onto the consumer and that the industry is one step closer towards providing reliable sustainable energy solutions. The more reasonable costs and more reliable energy will encourage more value for money.

The US is taking a cue from Europe…

Europe has long-been regulated by government tariff rates. A tariff is the price per unit of electricity that a utility or supplier has to pay for renewable electricity from private generators. These government subsidies are helping to make the industry competitive. Higher tariffs help operators cover the higher cost of production without passing it onto the consumer.

The investment will pay off in the long run. The reasoning is that if the government continues its support for the industry now, then solar power will be able to match peak-hour pricing from coal and natural gas by 2012 – meaning that the industry will no longer need subsidies.

So saving greenbacks will help companies and consumers alike go green