Did Solar Panels Used To Be Free?

Solar energy is an abundant and renewable power source with minimal environmental impact. But solar panel technology, which converts sunlight into electricity, is still a relatively new development. With the cost of installing solar panels often in the tens of thousands of dollars range today, some may wonder — were solar panels free in the early days? This article explores the history of solar panels to understand how much they used to cost and whether they were ever free.

Table of Contents

Early Development of Solar Panels

The history of solar panels dates back to the 19th century. In 1839, French physicist Edmond Becquerel first discovered the photovoltaic effect, the process that enables solar panels to convert sunlight into electricity. However, it took over a century before the first modern solar cell was invented.

In 1954, researchers Gerald Pearson, Calvin Fuller, and Daryl Chapin at Bell Labs created the first silicon solar cell capable of converting enough sunlight into power to run everyday electrical equipment. Their invention was built upon the previous work of Russell Ohl, who patented the solar cell design in 1946 while working on semiconductor research. Though primitive in design, this innovation marked the advent of solar technology as we know it today.

After the Bell Labs breakthrough, solar cells began being utilized in the late 1950s and 1960s for energy in space satellites. By the early 1970s, Exxon, ARCO, and other fossil fuel companies were exploring ways to commercialize solar but determined theReturn on Investment (ROI) was too low for the price per watt at that time. However, these early experiments paved the way for future advancements in solar technology and manufacturing techniques that would dramatically lower costs.

Cost of Early Solar Panels

The cost of solar panels in the early days was quite high. According to AESOLAR, the price of silicon PV cells was $76 per watt in the 1950s. This high cost was due to the expensive materials needed to manufacture the panels, such as silicon, as well as the small scale of production at that time.

As noted by Solar Tribune, it was not until the 1970s after the oil crisis that production of solar panels started to ramp up. But even then, prices remained very high compared to today. The small-scale production meant that economies of scale could not be achieved to bring costs down significantly.

So while early solar panels represented an amazing technological achievement, the manufacturing processes and materials available at the time meant that only a few entities could afford the cutting edge photovoltaic panels coming to market.

Government Support

The 1970s saw a surge in government support and incentives aimed at promoting solar energy adoption in the United States. This came in response to the 1973 oil crisis, which led to a desire for energy independence. The National Energy Act of 1978 contained provisions to encourage renewable energy sources like solar. For example, it created an investment tax credit that allowed businesses and individuals to deduct a percentage of solar system costs from their federal taxes over several years (History of Solar Power – IER).

Other government solar incentives in the 1970s included low-interest loans, property tax exemptions, and direct rebates. There was also significant investment in solar research and development from the federal government and electric utilities (New York Times). In total, an estimated $2.1 billion in solar subsidies were made available in the late 1970s (Active History). This government support helped drive early adoption of solar, though costs remained high for many homeowners.

Improving Affordability

Solar panel costs declined significantly over time due to technological improvements and economies of scale. As MIT researchers explained, between 1980 and 2012, the cost of solar panels declined from around $80 per watt to around $0.70 cents per watt. This sharp drop was largely driven by innovations that increased solar cell efficiency while using less silicon. Cell efficiency gains of around 1% annually compounded to make a major difference over 30 years. At the same time, manufacturing scales enabled larger volume production at lower cost per unit. As analyst Amit Dhingra noted, greater scale improved automation, supply chain development, and other efficiencies.

Were Solar Panels Ever Free?

Though solar panels today still require a substantial upfront investment by homeowners, some people wonder if there was ever a time in the past when solar panels were free. However, solar panels themselves have never been completely free of charge.

In the 1970s, as part of President Jimmy Carter’s push for renewable energy, solar panels were installed on the roof of the White House. While symbolic, these solar panels did not provide free energy, but demonstrated political support for solar power (Source 1).

There have been government incentive programs aimed at encouraging solar adoption, like tax credits that offset some of the purchase and installation costs of solar panels. But the panels themselves have always required payment by homeowners. Essentially, there were programs that reduced the net out-of-pocket costs through rebates and credits, but solar panels have never been provided to consumers at no cost.

Current Costs

In 2024, the average cost to install solar panels ranges from $11,000 to $16,000 for an average-sized residential system in the United States. However, costs can vary significantly based on system size, location, roof type, permitting requirements and equipment choices. According to EnergySage, most homeowners are paying between $2.65 and $3.25 per watt for solar panel installation in 2024.

For a typical 5 kilowatt system, this translates to $13,250 to $16,250, before claiming any solar incentives. In states with high electricity prices and strong solar policies, costs tend to be on the lower end of this range. For example, the cost to install solar in Massachusetts averages around $3.09 per watt, while in sunny Arizona costs are closer to $2.42 per watt.

Larger solar systems over 10 kilowatts cost between $1.60 to $2.18 per watt. Though the per watt price is lower for bigger systems, the overall cost ends up higher. A 12 kilowatt system runs $19,200 to $26,160. On the smaller end, a 3 kilowatt residential system costs $7,950 to $9,750 on average (Forbes, 2024).

Factors Affecting Cost

Solar panels can have high upfront costs compared to other energy sources, but those costs are dependent on many factors. Some key variables that impact total solar panel system pricing include:

Type of panels – More efficient panel types like monocrystalline tend to cost more than polycrystalline or thin-film panels.
System size – Larger systems with more panels and higher capacity cost more overall. However, they can provide greater long-term savings.
Installation complexity – Basic roof-mount installations are cheaper than more complex installs needing customized racking or electrical work.

Location – System costs vary regionally based on labor, permits, utility rates and solar incentives.
Equipment brands – Premium inverters, racking and other hardware add to costs over cheaper system components.
Additional features – Add-ons like battery storage can significantly increase upfront pricing.

Understanding these cost factors can help consumers make informed solar decisions based on their budget and needs. Developers are also working to lower system pricing through improved technologies and economies of scale.

Outlook

Projections indicate that solar panel costs will continue to decline in the coming years. According to the U.S. Department of Energy, the average cost of solar is expected to drop by 57% between 2020 and 2030 [1]. Major factors driving down costs include technological improvements, economies of scale, and streamlined installation processes.

An empirical analysis by pv magazine predicts solar module prices will fall from $0.22/Watt in 2023 to $0.097/Watt by 2030 as global production volumes increase [2]. These projections indicate solar power will become increasingly affordable for residential and commercial customers in the years ahead.

However, regional differences will remain. Sunnier areas like California and the Southwest U.S. will continue to see the fastest payback on solar panel investments. But improving technology and economies of scale will open up solar to new markets nationwide.

Conclusion

The cost of solar panels has declined significantly since their invention in the 1950s. Though government incentives helped spur adoption, panels were never free for consumers. The steep initial prices reflected the cutting-edge photovoltaic technology and small-scale production at the time. With advances in materials, manufacturing, and installation, solar power is now an economical energy solution for many homeowners. Yet quality solar systems still require an upfront investment or loan. At over $10,000 for the average household system today, solar has become more affordable but not free. Continuing technological improvements and expanding production may reduce costs further, allowing more families around the world to access this clean, renewable power source.