Costs and Benefits

The way to have the most expensive system is to delay action until tax credits expire.

The cost of a solar PV system is an obvious driver of solar feasibility.  Fortunately, the total system cost per Watt ($/Wdc) has dropped over 65% since 2007 with 10-15% annual decreases since 2009, due to significant decreases in module pricing, spurred by the well-publicized competition in that market segment.  Module pricing is forecasted to continue on a slight decline, but a leveling effect is inevitable as manufacturers currently operating at a loss in the hope of gaining market share are driven from the market.

As photovoltaic solar electricity is becoming competitive, local and national incentives are being phased out or eliminated entirely. Arizona and Louisiana eliminated their incentives in 2014, and other states are considering it. The 30% Federal tax credit is scheduled to expire in 2016. The future of Utah’s 25% tax credit (up to $2000 per residential unit) is unknown. 

Utah Applied Solar Energy, LLC  2015