Global Markets Can Affect Your Solar Costs

You may have seen a lot of news about recent US/China trade hurdles.  It is certain that both countries are a massive part of a global economy, and especially in the realm of solar energy.  This topic of discussion may have spilled over into your dinner time conversation when thinking about installing solar in your own home.  

Solar panels prices were in decline this year, as they have been for several years now.  The diminishing cost of solar panels has been a signal of technological advancement and efficiency as the global market has demanded more solar than ever before.  This month,  China pulled the plug on approximately 20 GW of domestic installations.  This massive change of direction has resulted in a global glut for solar supplies, whereby causing solar prices to drop even further.  
 

The world's largest solar market

The world's largest solar market, China, put an immediate stop to a slew of current solar installation projects and actions across the country.  This massive solar project would have matched the output of 20 nuclear-powered energy plants.  Due to this unprecedented global solar panel glut, the buyer's market and international solar developers are putting off purchases in hopes that even lower prices will occur in the not so distant future.           

According to PVInsights, a site for all solar PV (Photovoltaic) real-time price updates, the price for a polysilicon module slumped 4.79 percent since May 30 of this year.  This slump led to an industry record low of 27.8 cents per watt immediately afterward.  This decline had pointed toward what could be the most substantial monthly decline of the average price 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 components, whereas we can see its immense market influence in moments such as this.     
 

This global decline in price

This global decline in price will hurt the largest of Chinas solar industries manufacturing base.  Manufacturing giants such as JinkoSolar Holding Co.  However, this could also create an economic boom for solar developers such as Sunrun Inc.  Solar developers could experience massive financial savings and benefits from the lower costs 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 the year, she expects module prices 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 price tilt toward 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.

It is true that the global solar market is volatile at the moment.  However, we at HahaSmart can assure our customers that we will strive to find the best price possible when deciding to go to solar.  Our solar prices 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. 

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