With an ever increasing rise in solar installations, Australia is adjudged one of the global leaders with 746 WDC per person. This record rooftop solar capacity per capita comes with no surprise as the cost of solar panels in Australia is way less than in the US. This means the price per watt for a 3-kW system goes to less than a dollar.
In a survey report released by an Oslo based company, Rystad Energy, this comparison in prices was analysed. Australia and the US are the two countries seeing a tremendous rise in solar energy with an abundance of solar resources and incentives provided by the local government.
Though the United States has more than ten times the population of Australia, its annual rooftop PV installations go just twice. In other words, the residential solar systems in the US are just 56% compared to 87% in Australia. This discrepancy is the result of higher costs of solar panels and equipment in the US.
The cost per watt for a 3 kW system in Australia is USD 0.96 compared to that in the US, which goes for USD 4.6 per watt for a 3 kW system. You can notice that the difference is way more than half the cost.
The reason behind the higher solar price tag in the United States is driven by many elements such as sales tax, permits, inspection costs, interconnection, profit margins, and manufacturing costs among others. All these factors contribute to the rise of at least 60% in the overall solar equipment cost.
Other than this, residential solar systems in the US are not that economic as the traditional or retail electricity prices there are significantly lower. This is the reason why not many households recognise the benefit of going solar. In Australia, as the electricity costs are high, people often feel the need of going solar.
Conclusion: The cost per watt for a 3 kW system in Australia is USD 0.96 compared to that in the US, which goes for USD 4.6 per watt for a 3 kW system, according to an analysis report formulated by an Oslo based company Rystad Energy.
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