Whether you are looking to install solar panels in your home or on your business, you are probably wondering how much solar power is produced in the U.S. Today, the US ranks as the fourth largest solar power producer in the world, and according to the US Energy Department, about 68% of solar electricity net generation comes from small-scale solar, and the rest is from utility-scale solar. Whether you are a home-owner looking to install solar panels, or an investor looking to fund solar projects, it is important to understand how much solar power is produced in the U.S.
Cost of installing solar power
Depending on the type of solar panel you use, the cost of installing solar power in the US can vary. However, there are some key factors that can help you figure out how much you’ll spend. Using a solar calculator can help you calculate the most cost effective solar system for your needs.
For instance, the average cost of installing a grid-tied solar panel system ranges between $15,000 and $21,000. That may sound expensive, but the technology is fairly inexpensive. This type of system is a great way to reduce your dependency on the power grid.
The cost of a solar power system will depend on the number of panels you install, how much energy you plan on using, and where you live. However, there are some basic elements that all solar systems have in common. Some of these elements include panels, conduits, wiring, inverters, batteries, and mounting hardware.
Ups and downs in the utility-scale solar market
Throughout the past decade, the United States solar industry has experienced ups and downs. These ups and downs have impacted both the commercial and residential segments. The utility-scale segment has led the way in terms of solar power market share.
According to the International Energy Agency (IEA), there were 627 GW of solar capacity installed globally by the end of 2019. The United States holds the lead in solar power market share at 38%, followed by Japan at 22% and China at 18%.
The cost benchmark for utility-scale solar energy continues to decline. The National Renewable Energy Laboratory (NREL) estimates that solar costs are at their lowest point since 2008. In the first quarter of 2021, the cost of utility-scale solar was $0.89 per watt.
Community solar programs
Approximately 70 GW of solar power was installed in the United States in 2019, a large increase over the 60 GW installed in 2018. But how much solar power is produced in the US?
Community solar is a program that allows individuals to get a portion of their electricity from a renewable generator, which may be a third-party owned facility. Typically, participants pay a lower rate for electricity and receive a credit on their electric bill for the amount of electricity generated by their share of the community solar system.
Community solar programs vary in terms of their product offerings, program length and size, and number of participants. Most programs are designed to save customers money.
Small-scale solar accounted for 68% of total U.S. solar electricity net generation
Across the United States, the solar industry has created thousands of jobs. During the past decade, solar installations grew at an average rate of 33% per year. This growth has helped the industry meet an increasingly important goal: to increase the share of electricity generation from solar to more than 4% of total generation.
A recent report from the U.S. Energy Information Administration (EIA) found that solar ranked first in the addition of electric capacity to the grid three years in a row. The report also shows that solar remains on track to add most capacity again through the first half of 2022.
Over the past decade, the cost of solar installation has dropped significantly. The average size of a residential system has dropped from pre-incentive prices of $40,000 in 2010 to around $20000 today.
Vehicles with built-in solar panels and converters will reduce the need for charging stations and acreage for solar panels
Using solar power to charge an electric vehicle is more cost-effective than using the grid. Using a home-made solar power charging station is also cheaper than using public charging stations.
The solar power industry continues to grow worldwide. In the United States, solar power production has increased 42% in the past decade. The US Energy Information Administration estimates that renewables will generate 24% of US electricity in 2023.
In addition, a new study from the National Renewable Energy Laboratory has identified the most promising approaches for recycling solar panels. This includes developing technologies to reuse old, damaged panels.
Solar panels also offer an interesting way to extend the range of an electric vehicle. By using them in conjunction with a battery energy storage system (BESS), the energy needed to power a conventional electric car may be stored for use later.
