For many years now, the advantages of using solar energy have been obvious. The fact that it is supplied freely by nature makes it the cheapest energy source. Nevertheless, it is still not being used to capacity. One of the underlying reasons is that most potential buyers think that solar panels are utterly expensive which is no longer the case is nowadays as cheap panels are available everywhere. The prices of solar energy panels have fallen significantly. Today, there is an astounding variety of commercial solar panels that are cheaper than they were in the past. Normally, the initial high cost used to deter many homeowners from using solar electricity at home. Several factors make commercial solar Adelaide energy more cost effective.
Economies of scale
With a low demand, the cost of manufacturing even a product with low production cost goes up significantly. On the other hand, when manufactured in bulk, an expensive product becomes cheaper. This has been the case with the manufacture of lower cost solar panels. Because of manufacturing in large scale, the companies can make decent profits from the sale of low cost; demand has increased. The overall increase in worldwide demand for these cheap panels and commercial solar PV cells has led to a considerable fall in their prices.
The current ones are more efficient than those who were in the market only a few years ago. This has mainly been attributed to the incredible technological advancement in the field of solar power efficiency. With the widening market, the increase in demand has seen competition between manufacturing companies increase. The increase in competition is always good as it leads to lower prices and high-quality products. This has been the case with solar power panels as their quality and efficiency has gone up compared to the past models. The current models produce more energy than those of the past could ever produce. The users, therefore, get more from these panels than they could get from the old models.
Governments have recognised the importance of solar energy as it reduces pressure on electricity and results to less need for the importation of fossil fuels. Incentives are now offered in the form of tax breaks, rebates of different types and other financial incentives. These government incentives have increased the popularity of commercial solar Adelaide. The incentives have allowed both homeowners and corporations to resort to solar energy. Initially, the main deterrent to the installation of large-scale solar energy systems was the high capital requirements. The incentives have lowered the costs, and this hindrance is no longer there.
High cost of electricity and fossil fuels
The developing countries have steadily increased their demand for fossil fuels over the years. This increase in demand has served to raise the price of oil. In the world, electricity is produced in large scale by the use of fossil fuels. With increased cost of fossil fuels, the cost of electricity has therefore gone up considerably. With the prices coming down and the cost of electricity increasing, solar energy is positioned as an attractive source of power due to its low cost. The cost of electricity has been rising by 5-8% each year while on the other hand; the cost of cheap solar panels has been falling.