A new report shows that the cost of rooftop solar power continues to fall. Between July 2014 and June 2015 the cost of residential solar power fell from $3.86 per watt in 2014 to $3.79 per watt in 2015. In terms of system costs that means the cost of an average (7.9 kilowatt) home system fell from $31,247 in 2014 to $29,225.
That is a 6 percent drop in the cost of solar power over a one year period, according to the new EnergySage Solar Marketplace Intel Report. The report used data recorded as potential consumers used its solar tools.
“Based on statistically valid transaction-level data, the industry-first report reveals consumer buying behavior, hardware manufacturer and solar financier market share statistics, the return on solar investment and more for the period of July 2014 through June 2015,” the company stated. The company said it generates millions of data points every day between consumers and solar installers or developers and has collected that information this new report.
The company said the report is intended as a complement to the quarterly Solar Market Insight Report produced by GTM Research and Solar Energy Industry Association (SEIA).
“The residential solar market is a vibrant $7 billion industry and on track to generate more revenue by year-end 2016 than Major League Baseball,” said EnergySage CEO Vikram Aggarwal. “The economics of solar are rapidly changing for solar shoppers, installers, and financiers alike. As demonstrated by the data within our Solar Marketplace Intel Report, it’s becoming more affordable for U.S. households to adopt solar.”
The report found that the way solar customers are purchasing their systems is changing as well. Now roughly 40 percent of homeowners are opting to buy their solar-powered system out right rather then use a power-purchase agreement or third-party ownership (TPO) arrangement to finances the system over long period of time. In the past few years TPO options dominated the market. Now more companies are able to offer financing that allows outright ownership of rooftop solar.
The report found that the average rooftop solar system produces roughly $2,000 a year of electricity for the homeowner. The average rooftop solar array is producing almost 85 percent of the homeowner’s electricity needs in 2015 and that payback time for a solar power system in the U.S. stayed steady at 7.5 years.Tweet