you are thinking of building a new home, and you want it to be as energy
efficient as possible. You’ve heard that the cost of solar panels has dropped
significantly. But you aren’t sure of the next steps. First

you are thinking of building a new home, and you want it to be as energy
efficient as possible. You’ve heard that the cost of solar panels has dropped
significantly. But you aren’t sure of the next steps. First
the good news -- you heard right! The cost of photovoltaics has dropped
precipitously in recent years, thanks to a rush of imports, improved solar
efficiencies, and bigger economies of manufacturing scale. The installed cost
of a residential system has fallen to a tempting $2.70 a watt, making it very
competitive with purchasing power from the utility.
led to a big increase in residential installations – they nearly doubled from
2014 to 2015 alone. “Things are really looking good for solar,” said Ron
Fergle, of Solart Inc., speaking to a packed room of architects at this year’s
American Institute of Architects conference. It’s
reached the point where producing solar electricity is cheaper in the long run
than buying it from a utility, as long as you are willing to make an upfront
investment. “Photovoltaics are cost competitive with fossil fuels,” says Jason
Jewhurst, a senior associate with Bruner/Cott Architects & Planners, which
specializes in urban housing projects.
much would it cost to buy a system for your new home? Installers say the size
of the typical photovoltaic installation is about 5 kilowatts (kW). At $3 per
watt, that means the system only costs $15,000, half of what it cost five years
ago. A super energy efficient new home, on the other hand, may only need a 2kW
system. That would run about $6000. And that’s before tax breaks. The first is
a federal solar tax credit of 30 percent. States may offer tax
economics of photovoltaics are so compelling that some people design net-positive
homes that produce more power than they consume. In more than 35 states, the
excess power can be sold to the local utility at full retail rather than
wholesale rates. And you can still buy electricity from the utility when you
might need it.
are typically only one part – arguably the most important one – of a system
that powers your home. Most photovoltaic panels produce direct-current (DC) power
that must be converted to alternating current (AC) with a stand-alone inverter.
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