Markets Impact Clean Energy Costs

Unfortunately, you may have seen a lot of news about new US/China trade obstacles. It is certain that both nations are a big part of a global economy, and in the clean energy market.

This interesting topic may have spilled over into your dinner time conversation when contemplating installing renewable energy in your own residence. Panel prices were in decline this year. This has been a continuing trend for years now. The plummeting price of panels are clues of technological advancement and efficiency as the global market has demanded more solar than ever.

China ceased on approximately 20 GW of domestic installations. This huge shift of direction has resulted in a global glut for clean energy supplies, whereby bringing clean energy prices to drop significantly.

China’s Renewable Energy Role

The global’s biggest clean energy market, China, ceased current solar installation projects and actions across the U.S.. This solar project would have matched the output of 20 nuclear-powered energy plants. Due to this unprecedented global panel glut, the buyer's market and international clean energy developers are delaying to buy in hopes that even lower prices will occur in the not so distant future.

On PVInsights, a site for all solar PV (Photovoltaic) real-time cost updates, the price for a polysilicon module slumped 4.79 percent since May 30 of this year. This resulted in a record low of 27.8 cents per watt immediately afterward. This drop moved toward what could be the steepest monthly decline of the average cost for polysilicon modules since December 2016; when the world faced its last extreme oversupply of a similar kind.

China is responsible for the manufacturing of nearly 70 percent of all solar parts, whereas we can see its immense market influence in moments such as this. This global drop in cost will negatively influence the largest of China’s solar industries manufacturing base. Manufacturing giants such as JinkoSolar Holding Co.

However, this could make an economic boom for solar developers such as Sunrun Inc. Solar developers could gain huge financial savings and benefits from the reduced prices brought about by this Chinese pull-out. “Chinese and international project developers are putting their orders on hold as modules get cheaper,” Yali Jiang, an analyst at Bloomberg New Energy Finance, said in a research note Tuesday.

By the end of this year, she believes that module costs will slide to 24 cents a watt, down 35 percent from 37 cents at the end of 2017. The Invesco Solar ETF $TAN, the largest ETF dedicated to solar stocks, also noted a 45.6% downward cost tilt for U.S. solar companies, along with 21.1% China, 9.5% Spain, 8.6% Germany, 4.7% Norway, 4.4% Canada, 3.9% Switzerland and 2.3% Hong Kong.

Conclusion

The world market for solar is unstable. We at HahaSmart ensure our customers that we will strive to find the best price possible when deciding to go to solar. Our solar costs are the best you will find nationally, and regardless of the national and international economic issues, we will surpass our competitions prices and by helping our costumers to take advantage of our unique and low-cost solar buying and installing system.

If you want to move into the future and join the solar revolution, or if you want to find out what solar panels are right for you, go to HahaSmart.com and try our price checker tool. You can see how much a system will cost, and how much you can save over the next 20 years. For more information relating to going solar, don't forget to visit our solar blog section for more handy guides and articles. 

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