By: Guest Blogger Scott A Robinson, University of Texas at Austin – Energy Systems Transformation Group
The price of solar panels has been decreasing rapidly in recent years. This decrease in price has been reflected in residential markets, with installation numbers booming. However, the total costs of the system remain high enough to discourage mainstream adoption of the technology—even in places like Texas, which have abundant solar resources.
From a customer’s viewpoint, there are two components of the cost of a solar photovoltaics (PV) system. The first is the “sticker price” of the system: the price you pay out of pocket. The second is information cost: the time you must spend researching the technology to understand if it would be a good investment overall. This is a more difficult task for PV technology than it is for a new phone, or even a new car. The complexity of assessing solar PV creates a cost barrier on top of the reported price of the system.
To better understand these costs to consumers, and what can be done to decrease them, Dr. Varun Rai and I looked at data from PV owners across the state of Texas. We wanted to better understand the drivers behind the length of time people spent researching solar PV before deciding to buy. Our paper describing the results of the research, “Effective Information Channels for Reducing Costs of Environmentally-friendly Technologies: Evidence from Residential PV Markets”, was published last month in Environmental Research Letters (ERL). Read More