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If the price of solar continues to drop rapidly, why would anyone buy solar? Waiting a couple years for another 50% price drop seems like an obvious choice whil

by hughes 10y ago

If the price of solar continues to drop rapidly, why would anyone buy solar? Waiting a couple years for another 50% price drop seems like an obvious choice while we're still in the $5k-10k range to outfit a home.

maxerickson 10y ago
Presumably people buying solar now are comparing it to the other available options rather than future solar.
Scirra_Tom 10y ago
Isn't it only dropping because people are buying it? If no one was buying it, it'd get more expensive. Also, a 50% drop this year doesn't guarantee a 50% drop next year. And perhaps there's some speculation that traditional energy sources are going to increase in price going forwards. Also, I think for a lot of buyers there's more to the purchase than cost. A lot of organisations have environmental targets to hit nowadays, solar is one way to realise these targets. And as another commenter mentioned, some people buying might not have a choice (not having electricity isn't an option).
dabeeeenster 10y ago
Some of the costs are not going to come down much more. Installation labour, roof panel frames, inverter etc. etc. can come down a little but not by much. https://electrek.files.wordpress.com/2016/05/chart.jpeg?w=771&h=514 https://electrek.files.wordpress.com/2016/05/chart.jpeg?w=77... The price curve has to start flattening out soon! (I hope it doesn't, but I can't see how you can carry on achieving 50% price drops so rapidly...)
- dicroce 10y ago
  If efficiency went up, installation can come down...
Retric 10y ago
People need power now and are not willing wait 5 years. So, someone is going to buy additional power generation now. In which case it's a question of current solar prices vs. (coal, nuclear, etc.) not future solar prices vs current solar pirces.
mathgeek 10y ago
Do you mean the generated power, or the generation hardware? If it's the cheapest energy source available in a market where you have the freedom to choose your supplier, it's a no-brainer.
beachstartup 10y ago
sure, this is what they teach you in econ 101 about deflation, but in reality, people buy things with utility even if they're getting cheaper (computers, cars, electronics, etc.)
theandrewbailey 10y ago
People are buying solar today because it's already cheaper than buying grid electricity in a few places. Why wait for another price drop while paying the electric company even more?
wmeredith 10y ago
This is only an issue if you don't NEED the energy NOW. People need it now and they have to get it from somewhere. It doesn't matter what it will cost if you have to have it now. All that matters is what your options are today.

by hughes 10y ago

maxerickson 10y ago

Presumably people buying solar now are comparing it to the other available options rather than future solar.

Scirra_Tom 10y ago

Isn't it only dropping because people are buying it? If no one was buying it, it'd get more expensive. Also, a 50% drop this year doesn't guarantee a 50% drop next year. And perhaps there's some speculation that traditional energy sources are going to increase in price going forwards. Also, I think for a lot of buyers there's more to the purchase than cost. A lot of organisations have environmental targets to hit nowadays, solar is one way to realise these targets. And as another commenter mentioned, some people buying might not have a choice (not having electricity isn't an option).

dabeeeenster 10y ago

Some of the costs are not going to come down much more. Installation labour, roof panel frames, inverter etc. etc. can come down a little but not by much. https://electrek.files.wordpress.com/2016/05/chart.jpeg?w=771&h=514 https://electrek.files.wordpress.com/2016/05/chart.jpeg?w=77... The price curve has to start flattening out soon! (I hope it doesn't, but I can't see how you can carry on achieving 50% price drops so rapidly...)

dicroce 10y ago
If efficiency went up, installation can come down...

Retric 10y ago

People need power now and are not willing wait 5 years. So, someone is going to buy additional power generation now. In which case it's a question of current solar prices vs. (coal, nuclear, etc.) not future solar prices vs current solar pirces.

mathgeek 10y ago

Do you mean the generated power, or the generation hardware? If it's the cheapest energy source available in a market where you have the freedom to choose your supplier, it's a no-brainer.

beachstartup 10y ago

sure, this is what they teach you in econ 101 about deflation, but in reality, people buy things with utility even if they're getting cheaper (computers, cars, electronics, etc.)

theandrewbailey 10y ago

People are buying solar today because it's already cheaper than buying grid electricity in a few places. Why wait for another price drop while paying the electric company even more?

wmeredith 10y ago

This is only an issue if you don't NEED the energy NOW. People need it now and they have to get it from somewhere. It doesn't matter what it will cost if you have to have it now. All that matters is what your options are today.