One of the drawbacks that stifle the adoption of solar energy is the misconception that renewable energy is free. So here is the reality, solar power is not free, but it is relatively cheap. In fact, the good news is solar power is now cheaper than new conventional power and it has never been easier to access it.
Affordable vs Free Energy
Renewable energy like solar power, in its raw form, is indeed freely produced by the sun (we have not received a bill from the sun yet). However the process involved in harnessing that energy and converting it to a form that households or businesses can use require systems, equipment, and manpower.
These all translate to a certain amount of cost, in just the same way traditional sources of energy like fossil fuels are converted into electricity. Thankfully, today renewable energy is in some cases is now cheaper than new fossil fuels. The best part about renewables like solar, is that comes from an effectively infinite energy source called the sun (our own free cosmic nuclear power plant).
Now, with Energy Terrain the story gets better. Our Solar Energy Plan (or Solar PPA), makes this low cost energy source even more accessible. If you want to know more have a look at our article on Solar PPAs here.
Falling Prices of Solar Energy
According to Bloomberg New Energy Finance, solar PV panel costs have fallen 83 percent since 2010, and could fall another 37 percent by 2025. Furthermore, the Australian PV Institute shows that, in 2017, pre-subsidy prices for solar systems were sitting between $2.01 to $2.24/Watt.
Factors influencing the reduction in solar PV prices include improvements in solar PV performance, manufacturing efficiency, increased demand and rebates/certificates.
As the price of panels is expected to go down even further in the next few years, this a very good time to get on the solar bandwagon.
Figure 1. Solar PV Module Prices (US$ per watt)
Source: ABC News (IRENA Database)
Solar Power System Options
If installing a solar power system on your premises has been something you’ve been considering, but don’t know where to start, we are here to help. There are three main ways to access solar power for your business or home. These include:
1. Solar Energy Plans or Solar Power Purchase Agreements (Solar PPAs) where we pay for the system and sell you the energy it produces;
2. Financing: or
3. Buy the system outright yourself. Not sure which one fits you best?
Check out our article here for help, or you can get in touch with our Sales team and we’ll be happy to help.
Solar power is a low cost way to meet your power needs for your business and home, and with Energy Terrain’s Solar Energy Plan, it has never been easier to access it.
Get in touch with us today so we can assess your needs and come up with a solar solution that is a custom fit for you.
Henbest S 2018, Henbest: Power System Will Dance to Tune of Wind, Solar, Batteries, Bloomberg New Energy Finance, viewed 06 November 2018, <https://about.bnef.com/blog/henbest-power-system-will-dance-tune-wind-solar-batteries/>
Australian PV Institute 2017, National Survey Report of Photovoltaic Applications in AUSTRALIA 2017 Australian PV Institute, viewed 06 November 2018, <http://apvi.org.au/wp-content/uploads/2018/07/PViA-2018-AU.pdf>
Baker N 2018, ‘Paris Agreement failure to cost Australia $126 billion a year’. SBS News, 4 August, viewed 16 November 2018, <https://www.sbs.com.au/news/paris-agreement-failure-to-cost-australia-126-billion-a-year>.
Saleh A 2018, ‘Australian climate policy ignoring billions in potential health savings, experts say’, ABC, 27 June, viewed 16 November 2018,<https://www.abc.net.au/news/science/2018-06-27/climate-policies-ignoring-billions-in-health-savings-experts-say/9836894>.