Solar’s Price Reductions Make Stronger Headway

The price of producing one megawatt-hour of electricity via solar energy is now around $50. On the other hand, the price of producing one megawatt-hour of electricity from coal is $102. That is nearly double the price of solar. Let’s dig deeper into why the cost of solar is making strong headway.

A massive decreasing cost of solar is a sign of dramatic change in how we power our infrastructure and vehicles. This significant price drop is likely to encourage a shift toward renewable power sources and away from fossil fuels like oil and coal.

If we want to slow the process of climate change, emissions from fossil fuels need to be eradicated. However, this reality will only be realized when renewable energy sources, like solar, become more affordable than traditional fuels; and it seems we are heading that way.

Huge Energy Strides

The wave of green energy is on the rise, and very apparent if you take a look at energy capacity being fed into the world-wide grid daily. For example, in 2017 alone, there was more solar energy available than any other time recorded. And, clean and responsible energy sources such as wind, hydroelectric, and solar, supplied a historic 12% of the world's energy requirements last year.

These figures can only lead to a major reduction in the price of solar. The individual consumer will find that the price of clean energy is very affordable now, and will continue to fall over the years to come. When renewable energy prices are low, we can all be part of the solar revolution.

All Sectors Are Experiencing Price Reductions

Especially in the manufacturing of monocrystalline wafers, which are made mostly in China, we have seen substantial pricing drops. The market price in China for these products averages around $0.432 and $0.434 per piece. This price drop translates into a real decrease of 11% and nearly 12%, sequentially, within one week.

We have also witnessed price falls for monocrystalline PERC clean energy cells. It has been shown that there has been a price decline of 8.5% to $0.172 per watt. And at the same time, prices for other types of solar cells continue to descending to a range between 2% and 6%.

Multicrystalline products in the solar modular market proceed to experience greater pressure. The median price of multi-crystalline solar modules continued to decline by approximately 3%, to $0.27 per watt. Also at the same time, these prices range from $0.24 to $0.41 per watt.

The spot market price for monocrystalline solar modules also fell by almost 2% to $0.352 per watt in recent days, while ranging from $0.31 to $0.55 per watt. And, in line with the other price diminishing trends, the prices for thin-film modules and high-efficiency multi-crystalline modules are currently moving within the two ranges described above.

Unbelievably, this solar price trend seems to be affecting the sector of the market ever. Now, even polysilicon prices are coming down with the rest. Average costs are now around $11.29 per kilogram, while the deepest spot market prices for polysilicon shown are $9.85 per kilogram. It appears even materials are making the future of a solar price revolution possible.

All of these price drops are having a massive impact on the global solar panel market. Whether it's solar development, manufacturing, sales, or installation, the market is prime due to the immense solar price downward trend.

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