Solar energy is now an increasingly viable option for businesses and consumers because of technological advancement, and the price has lowered. A report from the U.S. Department of Energy's LBNL says that the price of utility-scale solar energy projects has dropped by 70% from 2010-2020. The reduction in production has also reduced the cost of utilities. Renewable energy sources are usually more sought-after when the cost of fossil fuels rises; however, there are plenty of opportunities to earn money from solar energy, both when oil prices are low and when oil prices are expected to rise shortly.

Solar Energy: An Overview

Solar energy is typically created by changing light energy produced by sun into electricity. PV power is produced with flat solar panels that are attached to the roof of a building or spread out over open areas. Another thermal solar method uses mirrors to concentrate the sun's energy onto only one spot to convert water into steam. Steam is then turned into an engine. Photovoltaic solar panels have become significantly more prevalent for commercial and consumer applications than other kinds.

The cost of solar energy in 2020 was less than $0.06 per KWH worldwide, a significant drop from $0.38 a decade ago. However, it is more expensive than fossil fuels in some areas; however, the prices are usually similar when considering the tax incentives and breaks. The true savings from solar will be realized in the coming years because of the ever-increasing fossil fuel power costs. Solar is effectively locking into costs at a consistent cost. The only additional costs are the initial costs for setting up a solar system and the electricity cost from fossil fuels which are necessary when solar power doesn't meet all energy requirements. Although the best solar panel available today boasts efficiency ratings of up to 23 percent, most panels are between 15% to 20 percent efficient. The most efficient solar panel and efficiency ratings are:

• SunPower: 22.8%
• LG: 21.8%
• CSUN: 21.2%
• REC Solar: 20.5%
• Solaria: 20.4%

Another reason why the cost of solar panels has fallen can be attributed to the increasing supply, especially of Chinese producers. China has produced more solar panels in comparison to the demand, and this is pushing prices down. However, installing solar panels has decreased because of better methods and specifically designed tools.

Profiting From Solar Panel Installation

Many state governments provide tax subsidies or grants to encourage widespread solar panel installation. This means the final price after installation could be lower than the installation cost. Additionally, tax credits for solar power can help lower tax bills for the year. The best method to make money from solar panels on your rooftop is via net meters.

Net metering permits utility customers who own their solar energy to sell a portion of the electricity they don't consume into the grid. This billing method allows solar customers to be credited against their energy consumption, thus reducing their monthly costs. Most states have passed net-metering laws; however, the differences between the state's laws and their implementation means that the net metering benefits will differ for solar users in different regions of the country.

According to reports Washington homeowners can save between $17,173 and $23,234 when go solar over 20 years in 2019, based on costs for 2019 for five kW systems. In California, homeowners will save between $44,728 and $60,515, and according to New York, homeowners can save $17,504-$23,683 in 20 years in 2019, based on costs for 2019 for five kW systems. Some estimates put the savings at greater numbers.

Investing in Solar Stocks

The Solar Investment Tax Credit (ITC) was introduced in 2006; it has led to an average annual rate of growth in solar that is 52%, as per the Solar Energy Industries Association. Additionally, since the supply glut caused by Chinese production is satisfied by increasing demand, the earnings of solar firms are expected to rise.

One of the easiest methods of investing in the solar energy industry is to invest in Invesco Solar ETF (TAN). Invesco Solar ETF (TAN). The purpose of the ETF is to monitor the MAC Global Solar Energy Index. It comprises companies that make solar power products and equipment intended for the end-user, companies that make the equipment utilized by solar panel manufacturers and solar installers, and companies that specialize in the manufacture of solar cells. At the time of February. 19 2022 the investment earned the following returns: -15.59 percent (on the year-to-date basis), and it had a 41.10 percent return over 3 years.