How Much Does Solar Energy Cost Per KWH: Is It Even Worth It?

How Much Does Solar Energy Cost Per KWH_ Is It Even Worth It

Prices for solar systems have dropped by roughly 80% in the previous decade and are likely to continue to reduce.

According to analysts on the quick market expansion, solar is the introduction of conveyor systems, owing to the goods’ continual technical progress.

This is due to, among other things, increased efficiency and production gained via mass manufacturing modules and inverters.

Measuring The Efficiency: How Much Does Solar Cost per KWH?

How Much Does Solar Energy Cost Per KWH_ Is It Even Worth It

However, subsidies are critical to making this fledgling energy technology viable. Christian Moll, the Head of Knowledge Management, agrees.

As of 2022, the solar cost per kWh is around $0.06-0.08/kWh.

This was first accomplished through a cost-covering feed-in tariff (KEV), which has since been replaced by the one-time surcharge (EIV).

As a result of this, a more significant number of PV systems may be subsidized. “Costs have reduced even more as a result of the cessation of load profile measurements for a few years,” Moll says.

The KEV will be paid out until the end of 2022, whereas the EIV will be paid out until 2030. “It is now up to policymakers to develop the framework conditions that will allow for a significant increase of renewable energy once the subsidy ends.

This is especially true for the future structure of the power market and the growth of the CO2 tax, “Moll is persuaded.

AS we said earlier, solar power will cost between $0.05 and $0.08 per kilowatt-hour in 2022. This is around one-tenth the cost of coal-fired power.

After 2030, it is likely to plummet even further.

Germany provided a 20-year feed-in tariff to develop solar power plants in early 2022, pushing solar power costs between $0.03 and $0.05 per kWh in 2023.

Solar energy costs have been reduced by 75% since implementing the feed-in tariff.

The next stage is for the cost of solar energy to be competitive with traditional energy sources.

When is it advantageous to invest in a solar system?

A solar system, on average, pays for itself before it reaches its operational life of at least 30 years.

“Payback durations range from 10 to 15 years,” adds Molly.

Swiss costs are somewhat higher than those in Germany, but grid power purchasing prices are much higher.

“As a result, the payback time is shorter,” the analyst says. “You might expect quicker amortization in southern nations with stronger sun radiation, such as Italy or Spain,” concludes Moll.

The repayment period is around nine years in Germany, although it is just seven years in Switzerland.

This indicates that the system will generate a profit more expediently.

This is because Germany has a high yearly price for its power.

To put it another way, you will have to invest a significant amount of money to generate sufficient energy to compensate for the expense of the solar system.

Because of the reduced cost of power in Switzerland, a more minor system may be more financially feasible. Because of this, the payback time is significantly shorter.

The key to profitability is self-consumption.

The framework criteria for the profitable operation of their systems have altered for solar system owners due to the amendment of the funding conditions.

Because the feed-in tariff was eliminated in favour of a one-time payment, the growth in self-consumption has recently contributed substantially to boosting the profitability of a solar system.

This is especially true in supply areas, where relatively low returns are given for solar energy put into the grid.

If self-generated power is utilized for heat pumps and electric cars, among other things, and a battery storage system is installed, the self-consumption rate may be increased from 30% to over 60%.

The reason for the change in the funding conditions is that the EU decided to abolish the feed-in tariff. The decision means there will no longer be subsidies for renewable energies.

The EU believes that renewable energies are necessary to reduce greenhouse gas emissions.

Therefore, solar systems will no longer be subsidized, and the profits will be greater for those who invest in renewable energies.

However, a new set of rules will be implemented to determine the profits of the companies that produce renewable energy.

GVB Solar provides solar system insurance.

For total security: GVB Solar protects the in-house solar energy system and solar system from harm.

Communities based on self-sufficiency bring up new possibilities.

Self-consumption communities and the association for self-consumption (ZEV) bring up new potential to boost the appeal of solar energy, particularly for apartment building owners and renters.

The following has changed due to the updated federal energy legislation: Solar electricity may now be used by connecting apartments in the same structure and numerous nearby pieces of land.

The properties are linked to the higher-level distribution network from a central location. Individual properties receive internal power distribution via their own power lines.

The self-consumption community takes its own measurements and bills itself for this reason.

Setting up a ZEV for homeowners is simplified legally because no addition to the rental agreement is necessary.

Existing renters can choose whether or not to join the ZEV. However, new renters may be required to do so. The requirement that solar electricity generated on one’s own land may not be more expensive than power received from the external grid protects against abuse.


Using renewable energies is an opportunity for society and should not be limited to the individual level.

It can bring about significant changes in society as a whole.

The following are a few examples of how renewable energy can change the world:

Solar electricity may be used to power an entire community.

When an entire community becomes self-sufficient in renewable energy, we can eliminate the need for fossil fuels and the greenhouse gas emissions associated with them, especially oil.

Renewable energies can be used to produce clean water and air.

Using renewable energy to produce clean water can eliminate the need for a centralized water treatment system.

Renewable energy can provide safe and secure power.

With renewable energy, it is possible to eliminate the need for fossil fuels.

This is why solar as a renewable energy source can be the answer we are all hoping for.

Joe Siregar

Hi! I'm a mini solar-powered globetrotter. Stressed, blessed, and coffee obsessed.