Average price difference between fossil fuels and solar energy

Are solar energy costs more expensive than fossil fuels?

Simply put, the operating costs associated with producing fossil fuels dramatically outweigh the operating costs of producing solar energy. Solar is easily installed on a rooftop surface or ground mount and harnesses an already-available resource (sunlight).

How do you compare solar energy and fossil fuels?

When it comes to comparing the cost of solar energy and fossil fuels, the key determining factors are: the cost of materials or resources used to harness or exploit the energy type. Cost of installation and setup for the energy system. Solar installation requires several moving pieces.

How much does a fossil fuel cost?

This translates into higher operational costs. However, fossil fuel costs in the energy realm vary in relation to the energy source. Generally, fossil fuels tend to cost around $2.50 for every million BTUs. But, it may range between $2.02 per million BTUs for coal to US 9.07 per million BTUs for petroleum.

How much does solar energy cost?

The rest of the solar energy costs are a bit more subtle. They include things like: Solar systems for residential use typically cost $35,000-$55,000 per kW installed. A 5kW residential solar energy system will cost between $17,500 and $28,750 before applying any incentives. Fossil fuels take longer periods (hundreds of million years) to form.

How can we compare solar energy and fossil fuels without subsidies?

The best way to compare solar energy and fossil fuels without subsidies is to examine global energy prices. Consider this: global coal prices have historically averaged 0.06 cents per kilowatt-hour (kWh). Until the past decade, no alternative energy resource came close to rivaling that price.

Why are fossil fuels so expensive?

On the other hand, the depletion of fossil fuels and the lack of availability and accessibility are making their mining expensive. Fossil fuels such as coal, petroleum and natural gas offer greater efficiency when compared with solar energy. However, fossil fuel wastes a ton of energy during its conversion.