Photovoltaic Panel Prices

It looks like the price of solar panels is set to come down again in the next year or two. Solar panels that produce power at rates competitive with traditional power would be an interesting development, to say the least. For many people who would consider photovoltaic power the price only has to be mostly competitive to make it a viable option.

Colorado State University's method for manufacturing low-cost, high-efficiency solar panels is nearing mass production. AVA Solar Inc. will start production by the end of next year on the technology developed by mechanical engineering Professor W.S. Sampath at Colorado State. The new 200-megawatt factory is expected to employ up to 500 people. Based on the average household usage, 200 megawatts will power 40,000 U.S. homes. Produced at less than $1 per watt, the panels will dramatically reduce the cost of generating solar electricity and could power homes and businesses around the globe with clean energy for roughly the same cost as traditionally generated electricity.More

I would love to switch my house to a grid-tied PV system, but the financing isn't there yet. There are ways to finance the entire system such that the loan payments replace one's electric bill, often at a lower rate, but typically you're stuck with a 20 year loan. I'd imagine that could make selling the home more difficult, particularly with the real estate market in a bit of a mess as it is.

But, as always, the first thing to consider is not how you can generate your own power, but how you can use less power. This is far easier/cheaper than trying to generate your own, and uses fewer resources any way you slice it. Once you've minimized your consumption, then you can look at what it would take to switch to alternative power generation. With a greatly reduced demand you find that everything about providing your own power is better, from the PV cells or wind turbines to the lifetime of the batteries required to store the generated power.