Mythical $3.50/watt installation?

[ButchDeal]

Microprocessors got cheaper because the silicon processing steadily improved. The same could be said for the cells used in panels.

Well not really the same. Basically with CPUs, the photo processing systems that allowed printing micro processors improved, such that the number of transistors you could fit in an area doubled roughly every year. This meant that you could make computers faster and do more in the same space and that annually new cpus would obsolete old ones.
There is no corollary in solar and solar does not obsolete just because new cells have 0.01% more efficiency. You do have the reduction in costs due to efficiencies in larger manufacturing quantities.

Plus it is likely that regulations will in the near term increase costs of solar (in some areas), with more disconnects, rapid shutdown, larger setbacks, HOA sight lines rules, etc.

[bcroe]

Solar is a near commodity that produces a commodity. Much of the price guidance for solar equipment price reduction to 2020 originates from the manufacturers. As with microprocessors, solar component manufacturers assume they have to continually reduce price to stay in business. Today's costs are close to the sunshot goals set in 2010 for 2020.

But most of the added cost in the U.S. are the soft costs originating from unsustainable business practices in
an immature solar market.

Microprocessors got cheaper because the silicon processing steadily improved. The same could be said for the cells
used in panels. But the cost of the aluminum, steel, copper, and nuts & bolts is not going to drop. Inverters
are already amazingly cheap for what you get; features might increase, but I doubt prices will see much decrease.
Nor will the skilled labor to do installation. Once the overhead is streamlined, you are about there, baring a
revolutionary inovation in panel efficiency. Bruce Roe

[donald]

Kitchen appliances (like a fridge) have gotten more efficient and sophisticated over the decades but you will pay more now then you would have 5 years ago. Same for washer and dryers. Hopefully not for solar.

Solar is a near commodity that produces a commodity. Much of the price guidance for solar equipment price reduction to 2020 originates from the manufacturers. As with microprocessors, solar component manufacturers assume they have to continually reduce price to stay in business. Today's costs are close to the sunshot goals set in 2010 for 2020.

But most of the added cost in the U.S. are the soft costs originating from unsustainable business practices in an immature solar market.

[J.P.M.]

I'm not in California but I can tell you what I did to get a better deal. I purchased my system. Don't be afraid to make offers and get creative. Once I got the best offer from four companies, I chose a trusted, locally-owned solar business to do my entire install. They priced it at $19,000 up front. I said I would sign if they came down to $18,500. They agreed and then I offered to pay the majority of the cost up front (80%) and got a further 2.5% discount (down to $18,000 now). That left me at $2.71/W before tax credits incentives for a 6.63kW turn-key system.

To my further delight, they let me use a cash-back credit card to pay (which I promptly paid in full of course). After all tax credits and incentives I ended up at $11,170 total for my system. That's $1.68/W. It went online last November so I only waited a few months to get my federal and state credits applied.

A good example of using all/most of the available tools.

[UkiwiS]

I'm not in California but I can tell you what I did to get a better deal. I purchased my system. Don't be afraid to make offers and get creative. Once I got the best offer from four companies, I chose a trusted, locally-owned solar business to do my entire install. They priced it at $19,000 up front. I said I would sign if they came down to $18,500. They agreed and then I offered to pay the majority of the cost up front (80%) and got a further 2.5% discount (down to $18,000 now). That left me at $2.71/W before tax credits incentives for a 6.63kW turn-key system.

To my further delight, they let me use a cash-back credit card to pay (which I promptly paid in full of course). After all tax credits and incentives I ended up at $11,170 total for my system. That's $1.68/W. It went online last November so I only waited a few months to get my federal and state credits applied.

Excellent negotiation skills there! Love it!

[J.P.M.]

$20,500 including design, permit and installation.

The $7410 for installation was included in the $20,500

More speed reading problems. My error.

[SunEagle]

Once the subsidies go away, the market will stabilize. Many local electricians will install solar for wages, as is true today in Germany and Australia. Solar today, especially in California, is like the $1000 DVD player of yesterday. That $1000 seemed reasonable at the time, as the cost a few years earlier was $2000.

In the long term there is no residential solar businesses with corporate offices and investor relations specialists. There's just local businesses earning modest wages installing commodity electronics.

I understand you analogy concerning electronics and how the prices have dropped over the years.

I hope it works the same for solar which while having electronics is IMO no different from other appliances you can purchase for your home.

Kitchen appliances (like a fridge) have gotten more efficient and sophisticated over the decades but you will pay more now then you would have 5 years ago. Same for washer and dryers. Hopefully not for solar.

[donald]

Unfortunately the $/watt price in the US will stay high in areas like CA because of supply and demand. Hopefully it will go down when the FED rebate goes away but I wouldn't hold my breath.

Once the subsidies go away, the market will stabilize. Many local electricians will install solar for wages, as is true today in Germany and Australia. Solar today, especially in California, is like the $1000 DVD player of yesterday. That $1000 seemed reasonable at the time, as the cost a few years earlier was $2000.

In the long term there is no residential solar businesses with corporate offices and investor relations specialists. There's just local businesses earning modest wages installing commodity electronics.

[azdave]

I don't get how all of you are getting those prices. I'm in the Rancho Cucamonga, CA area and the cheapest quote I've been getting is $4.75/w That the cheapest! Dont ask me what was the highest. Anyone can shoot me message for referrals?

I'm not in California but I can tell you what I did to get a better deal. I purchased my system. Don't be afraid to make offers and get creative. Once I got the best offer from four companies, I chose a trusted, locally-owned solar business to do my entire install. They priced it at $19,000 up front. I said I would sign if they came down to $18,500. They agreed and then I offered to pay the majority of the cost up front (80%) and got a further 2.5% discount (down to $18,000 now). That left me at $2.71/W before tax credits incentives for a 6.63kW turn-key system.

To my further delight, they let me use a cash-back credit card to pay (which I promptly paid in full of course). After all tax credits and incentives I ended up at $11,170 total for my system. That's $1.68/W. It went online last November so I only waited a few months to get my federal and state credits applied.

[SunEagle]

It is a sellers market in most of California. There is not a single home solar system installed this year in Germany or Australia that is anywhere near $4.75/w before subsidy. In a mature market today, with a streamlined permitting process, the price of solar pre-subsidy is $2/watt or less.

http://cleantechnica.com/2015/01/29/...2-years-heres/

Unfortunately the $/watt price in the US will stay high in areas like CA because of supply and demand. Hopefully it will go down when the FED rebate goes away but I wouldn't hold my breath.

[donald]

I don't get how all of you are getting those prices. I'm in the Rancho Cucamonga, CA area and the cheapest quote I've been getting is $4.75/w That the cheapest! Dont ask me what was the highest. Anyone can shoot me message for referrals?

It is a sellers market in most of California. There is not a single home solar system installed this year in Germany or Australia that is anywhere near $4.75/w before subsidy. In a mature market today, with a streamlined permitting process, the price of solar pre-subsidy is $2/watt or less.

http://cleantechnica.com/2015/01/29/solar-costs-will-fall-40-next-2-years-heres/

[cthetoy]

I don't get how all of you are getting those prices. I'm in the Rancho Cucamonga, CA area and the cheapest quote I've been getting is $4.75/w That the cheapest! Dont ask me what was the highest. Anyone can shoot me message for referrals?

[mattnday]

$20,500 including design, permit and installation.

The $7410 for installation was included in the $20,500

[J.P.M.]

I purchased my 7.8kW system with 30 260w SolarWorld panels and Solar edge optimizers for $20,500 including design, permit and installation.

This is before what I hope will be $6700 in tax credits and rebates from SMUD.

Basically just a tad less than $2.70 per kW.

I used a wholesale solar company called Fortune Energy based in Sacramento to purchase the panels and Evans Energy to install the panels.

The install was $7410 of the cost or just less than $1 per kW.

Only thing out of the ordinary is I choose to pick up the panels instead of having them shipped since they were located locally.

I am very happy so farhttp://www.solarpaneltalk.com/images/icons/icon6.png

($20,500+ $7,410) = $27910; /7,800 W = $3.57/W less rebates & tax credit. Decent enough.

[mattnday]

Sacramento Installation

I purchased my 7.8kW system with 30 260w SolarWorld panels and Solar edge optimizers for $20,500 including design, permit and installation.

This is before what I hope will be $6700 in tax credits and rebates from SMUD.

Basically just a tad less than $2.70 per kW.

I used a wholesale solar company called Fortune Energy based in Sacramento to purchase the panels and Evans Energy to install the panels.

The install was $7410 of the cost or just less than $1 per kW.

Only thing out of the ordinary is I choose to pick up the panels instead of having them shipped since they were located locally.

I am very happy so farhttp://www.solarpaneltalk.com/images/icons/icon6.png