Photo voltaic Panel Prices Drop 60% Within the US Since Early 2011

Photo voltaic Panel Prices Drop 60% Within the US Since Early 2011

Photo voltaic Panel Prices Drop 60% Within the US Since Early 2011

Photo voltaic Panel Prices Drop 60% Within the US Since Early 2011

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The US Photo voltaic Power Industries Affiliation (SEIA) and GTM Analysis just lately launched their newest quarterly report relating to the US photo voltaic vitality market. There are a ton of attention-grabbing information from the report, such because the 60% price discount in photo voltaic panels talked about within the title. Listed below are some report highlights:

Photo voltaic Panel Prices Down

For one, because the title above notes, photo voltaic panel prices have been 60% decrease within the second quarter (Q2) of 2013 than they have been in early 2011. General photo voltaic PV system costs, on common, have been 40% decrease, they usually have been 50 % decrease than common photo voltaic PV system costs in early 2010.

I’ve emphasised this to many, again and again: when you’ve got a price of photo voltaic from a couple of years in the past caught in your head, you are in all probability significantly overestimating the price of photo voltaic right now.

US Photo voltaic Energy Rising Quick

Apart from the large price drop, one other level value noting is that solar energy continues to develop strongly. Q2 was the second-biggest quarter for solar energy progress in US historical past, solely trailing This fall 2012 (primarily as a consequence of a drive on the finish of the 12 months to put in a whole lot of photo voltaic in time to reap the benefits of 2012 tax credit – the 4th quarter is all the time the strongest of the 12 months). In complete, 832 megawatts (MW) of photo voltaic have been put in in Q2 2013.

Low photo voltaic panel prices drive US solar energy progress (photo voltaic panel prices down, progress up)

Additionally value noting is the clear proven fact that complete solar energy capability within the US is about to surpass 10 gigawatts (10,000 MW) this 12 months. Presently, the nation is at 9,370. Extra probably than not, the ten GW milestone will probably be handed someday this quarter.

Photo voltaic panels put in throughout the US now have sufficient energy capability to energy as much as about 1.5 million common US properties. That is spectacular. That is roughly sufficient to energy Philadelphia or Phoenix, the nation’s Fifth- and Sixth-largest cities.

In 2013 on the entire, about 4.4 GW of photo voltaic PV energy capability are projected to come back on-line, about 30% greater than in 2012. Yep, that is a fairly enormous chunk of the US complete. And the rationale? As I wrote above, photo voltaic panel prices have dropped a whopping 60% previously 2.5 years or so.

Photo voltaic Is A Nice Funding – Financially, Economically, & Environmentally

In line with some analyses, the return on funding (ROI) from buying photo voltaic panels right now beats the S&P 500 (on common) in 13 states and beats 5-year CDs (on common) in 43 states.

Plus, individuals understand that they don’t seem to be solely getting cash on these investments, however they’re additionally serving to the local weather (which we kind of want to stay livable), serving to their native communities, and turning into extra vitality unbiased and vitality safe.

Talking of serving to the area people, solar energy now employs over 120,000 individuals throughout the US. That is sufficient individuals to fill the cities of Athens (Georgia), Springfield (Illinois), Ann Arbor (Michigan), or Berkeley (California)… and extra. These 120,000 individuals are employed in 5,600 corporations. Naturally, all of these stimulates native and state economies, in addition to the US economic system as a complete.

Why Photo voltaic Panel Prices Have Fallen So A lot

Photo voltaic panel prices and complete put in solar energy set up prices are down throughout market segments. “Quarter-over-quarter, the nationwide common value declined by 9.3% from $3.36/W to $3.05/W, whereas dropping 11.1% from $3.43/W one 12 months in the past,” SEIA writes. “From Q2 2012 to Q2 2013, residential system costs fell 11.5% %, from $5.43/W to $4.81/W. Quarter-over-quarter, put in prices declined by 2.2% %. Put in costs got here down in most main residential markets together with California , Arizona, and New Jersey. Non-residential system costs fell 14.7% % year-over-year, from $4.35/W to $3.71/W, whereas quarter-over-quarter, put in prices decreased by 5.4%. States with SREC markets, equivalent to New Jersey and Delaware, noticed important value declines since installers should proceed to maintain margins razor-thin given low SREC costs.Additionally of notice, Pennsylvania’s non-residential system costs dropped by 13% quarter-over-quarter amidst its personal fledgling SREC market and a state rebate program set to run out on the finish of 2013.”

Photo voltaic panel prices

Photo voltaic panel prices are in all probability partly down as a consequence of technological and manufacturing developments. Nonetheless, the primary driver of the discount in put in photo voltaic panel prices is probably simply economies of scale (as extra photo voltaic panels are produced, prices come down) and market maturation (because the market grows, competitors grows – driving down the value of photo voltaic – and installers obtain economies of scale and minimize their costs).

Naturally, as photo voltaic panel prices proceed to drop, solar energy grows even sooner, which additional brings down the price of photo voltaic. (Fortunately, that is fairly totally different from the scenario with non-renewable fossil fuels, the place higher use of gas shortens provide and drives prices up over time.)

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photo voltaic panels