Solar power cost per kwh in the USA varies between 5 to 15 cents, making it a cost-effective and renewable energy option for households and businesses. With decreasing installation costs and government incentives, solar power is becoming an increasingly affordable and sustainable solution for energy needs in the United States.
As solar power continues to gain popularity as a renewable energy source, many Americans are considering making the switch to solar panels for their homes. One of the main considerations for homeowners when deciding to go solar is the cost per kilowatt hour (kWh) of solar power in the United States.
The cost of solar power in the USA has been steadily decreasing over the past decade, making it a more affordable option for many homeowners. According to the Solar Energy Industries Association (SEIA), the cost of solar has decreased by 70% over the past decade, with the average cost of residential solar installations dropping to $2.81 per watt in 2020. This means that the cost per kWh of solar power in the US is now more competitive with traditional sources of electricity.
One of the main factors that determine the cost per kWh of solar power in the US is the size of the solar installation. The larger the solar installation, the lower the cost per kWh. This is because the cost of solar panels and inverters is spread out over a larger area, making the overall cost of the installation lower on a per kWh basis.
Another factor that impacts the cost per kWh of solar power in the US is the location of the installation. The amount of sunlight a location receives per year can greatly impact the efficiency of solar panels and the overall cost of solar power. States like California and Arizona, which receive a high amount of sunlight per year, tend to have lower costs per kWh of solar power compared to states with less sunlight, like New York or Washington.
In addition to the size and location of the solar installation, the type of solar panels used can also impact the cost per kWh of solar power in the US. There are two main types of solar panels: monocrystalline and polycrystalline. Monocrystalline panels tend to be more efficient and more expensive, while polycrystalline panels are less expensive but less efficient. The type of solar panels chosen for a solar installation can greatly impact the overall cost per kWh of solar power.
It is also important to consider the cost of installation when calculating the cost per kWh of solar power in the US. The cost of installation includes not only the cost of the solar panels and inverters, but also the cost of labor, permits, and any additional equipment needed for the installation. The cost of installation can vary depending on the size and complexity of the solar installation, as well as the location of the installation.
One of the main benefits of solar power is the ability to generate electricity on-site, reducing the need to purchase electricity from the grid. This can result in savings on electricity bills over time, making the cost per kWh of solar power in the US more competitive with traditional sources of electricity. In addition, many states offer incentives and rebates for homeowners who install solar panels, further reducing the cost per kWh of solar power.
Another factor that can impact the cost per kWh of solar power in the US is the federal Investment Tax Credit (ITC). The ITC allows homeowners to deduct 26% of the cost of their solar installation from their federal taxes. The ITC is set to decrease to 22% in 2021 and phase out completely for residential installations in 2022. Taking advantage of the ITC can greatly reduce the cost per kWh of solar power in the US for homeowners.
In conclusion, the cost per kWh of solar power in the US has been steadily decreasing over the past decade, making it a more affordable option for homeowners looking to reduce their electricity bills and their carbon footprint. Factors like the size and location of the solar installation, the type of solar panels used, the cost of installation, and incentives like the ITC all play a role in determining the cost per kWh of solar power in the US. Overall, solar power is becoming a more competitive and cost-effective option for homeowners looking to go green and save money on their electricity bills.