How to Financially Evaluate Solar – Levelized Cost of Energy

How to Financially Evaluate the Cost of Solar

 

Solar power presents one of the greatest opportunities for our world’s energy future. Drawing power from a truly unlimited source, a solar panel system provides you with this access for at least a quarter of a century.

So is solar power really that good? You still have to make the investment in your system, and you may not be sure that your solar panels will be able to soak up enough of the sun’s rays to provide you with all of the power that you need. To help lead to a more informed understanding about the financial benefits of solar power, we will show you how to financially evaluate solar through the Levelized Cost of Energy (LCOE) process.

 

What is the Levelized Cost of Energy?

The cost per watt measurement system wholly relies on generalized estimates based on the possible market value of energy in a given region. But this does not allow you to consider all factors relevant to the cost of energy. Also, it takes a short-term look instead of considering long term how much an energy resource will cost over the course of its lifetime. Therefore, it is not an accurate enough financial evaluation to allow you to effectively asses which energy resource is the most cost effective.

LCOE is the modern way to measure the relative cost of an energy resource. This is a more effective measurement system because it is designed to consider all relevant factors throughout the course of the production resource’s life cycle. To do this, it approaches the cost of energy from a holistic perspective, instead of trying to keep up with the often unpredictable variations that can occur in the energy market.

Read more

What Does the Future of Solar Hold?

What Does the Future of Solar Hold

 

We’ve all wondered how to combat climate change and air pollution in our day-to-day lives. Relying on solar power is a great way to reduce your reliance on fossil fuels. Now that solar is affordable and attainable for the average homeowner, many ask the question, “What is the future of solar?”

Solar Savings

Historically, the price of solar panels has prevented homeowners from adopting renewable energy on a large scale. Whatever the long-term savings associated with solar, photovoltaics were expensive and many home and property owners were unwilling to take the risk of investing in them. In the past few years, however, panels have become both cheaper and more efficient, so in addition to lower cost, homeowners don’t need to install as many of them to power their homes. Solar is already less expensive than coal and gas power in parts of Dubai, Brazil, Uruguay, and Germany, and the price is expected to keep falling.

Not only have solar panels become cheaper and more efficient, but the cost of installing them has dropped as well. The price of adding a five-kilowatt power system to the average US home fell from $32,000 in 2010 to $23,000 in 2013 even without taking subsidies and tax credits into account. Lower installation prices are largely the result of economies of scale; as more homeowners and developers buy solar panels, the unit price of installing new solar drops. 1st Light Energy has also come up with more flexible purchase plans to make it easier for just about anyone to install panels.

Read more

Solar Panel Health Concern Title Image

What Health Concerns Come With Installing Residential Solar Panels?

Solar Panel Health Concern Title Image

Buzzwords and misconceptions have gotten our species into a lot of trouble over the years, as we fear or find things around us according to information that may not be the most accurate.

Of course, anyone interested in investing in new solar panels should do thorough research, consulting the experts in health and solar energy systems. And as such experts, let 1st Light Energy dispel any health concerns.

Read more

The Durability of a Solar Panel

The Durability of a Solar Panel: Strengths, Weaknesses and Troubleshooting

The Durability of a Solar Panel

Solar panels allow you to harness the sun’s power to provide clean energy for your home or business without fossil fuel combustion. Over the last decade, solar panels have become one of the most reliable and sustainable ways to power homes and buildings of all sizes.

 

To the naked eye, solar panels sometimes look like they would shatter under the slightest amount of pressure. In reality, the superior design of solar panels makes them highly durable.

Read more