Solar Pricing is going down yearly. Is now a good time to buy?

Is now a good time to buy Solar Panels?

Do you think now is a good time to buy solar panels? According to the Solar City CEO Lydon Rive, Solar City being the largest Solar System provider in the US, co-founded by Elon Musk and now a wholly owned subsidiary of Tesla Inc., prices of solar will conservatively drop 3%-5% within the next 5 years, similarly what we have predicted.

Rive had a more conservative estimate for prices falling in the next five years, predicting a price drop of just 3% to 5%.

“So not much — you’d be better off going solar and experiencing these savings immediately rather than waiting to go solar,” Rive explained.

The current average cost of implementing solar is about Php 80,000 / kWp installed. So for a 100 kWp system, this would be about Php 8 million. If we were to assume price drop of 5% after 5 years, the average cost for a 100 kWp system would be PhP 7.6 million (saving Php 400,000). Alternatively, implementing the system now, will result into savings of about Php 6.4 million after the same period of 5 years (using Php 8.00/kWh as the avoided cost and a target annual production of 160,000 kWh, multiplied by 5 years). Deducting the Php 400,000 (as it costs more expensive today), the net savings of implementing the system today is Php 6 million.

In order to achieve similar savings by waiting, the cost of solar will have to drop by 80% within the next 5 years.

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