Background:
Back in 1998, a fully installed solar system of around 3KW to 6KW was around $10.50 per watt (typical average). In 2002, the drop in prices AND the Federal, and in some states, State subsidies, resulted in double digit growth in the Photovoltaic industry. The growth was so rapid, it resulted in a silicon shortage that caused the price of pure silicon to go up. We've seen a regular drop in price per peak solar watt over the years and overzealous people in the 1980s and 1990s kept saying that solar for everyone is "just around the corner..." It is, but the corner didn't come as quickly as we had hopped.
New Developments:
There are a number of new things being tried as we get closer to having photovoltaic becoming practical for the masses and this looks exciting.
The first is that Installed costs (Panels, support equipment, AND installation) have dropped from the 1998 figure of $10.50 per watt to around $7.60 per watt. (Assuming a 3KW to 6 KW system.)
While a fully installed solar system can cost as much as a car, some other changes are making it more practical for the masses.
The first is something called the "micro inverter". In the past, a single large inverter was used to convert the DC from the photovoltaic energy into the AC power. This was a large capacity inverter that required additional cost to tie it into your power.
The micro inverter takes the DC power from the solar panel and converts it directly into the 120 or 240 VAC power. The advantage is that each panel has its own micro inverter and the output from each panel can be monitored.
The second idea is the small "plug in" solar system. The idea is that you purchase a 200 watt kit from Best Buy, Costco, or the Home Depot for around $800. You do the installation work yourself and tie your solar system into the grid by plugging it into the wall. (No electrician required.) A single plug could handle up to 5 of these kits, 1000 watts of solar ($4,000) and one can upgrade as needed.
Clarian Power: Sunfish Plug-In Solar Power
By removing the installation costs from the system, this brings the cost to around $4 per watt AND it makes it possible for the little guy to go solar. It is scheduled to come out late next year. It should be interesting to see how it will play out...
Bob Diaz