What does it mean that solar energy is growing? What are all these costs being thrown around?

According to the Motley Fool, 40 % of all new electricity generating capacity during the first half of 2015 came from solar energy. Yes, it still accounts for only 0.4 % of total electricity generation in the US, but this just demonstrates how much built up generation capacity that we have. While solar modules are being installed at a fast rate, the energy needed is also growing and building a power plant is a long-term commitment. It takes time to gain market share.

There are a lot of different metrics involved in calculating the cost of solar energy. One must account for the basic cost of a module, the installation costs, and the cost of electronics used to interface the module with the grid. For some applications, energy storage batteries must also be taken into account. Many reports of cost do not take all of these costs into account. Several years ago, people were really excited about module costs lowering below $1/Watt. As you can see, module costs are now well-below that price. Also, there is a price difference between industrial-scale and roof top (residential and non-residential) solar energy. Industrial scale production is less expensive than roof top energy. These costs also vary by location. It will cost more to install a solar panel in areas where installers lack experience.

Source: Deutsche Bank, Vishal Shah, for rooftop market

Therefore, when you hear people talking about solar and citing costs, always ask what they are referring to.