Solar Prices Fall Over Time

Have you ever been to the casino, and correctly called a dice roll?  Maybe you played the state lotto and picked those lucky numbers, and won yourself $46!  Sometimes we get lucky, sometimes we don't have to be.  In the world of winning, it's easy with solar.  The price of solar energy has dropped dramatically over the past two decades. Since 2010 alone, the cost of installed solar has fallen 70 percent. You may be wondering how that is possible, and what will become of the economy of the future solar market?  A quick answer is, in the world of solar panel prices, things are looking good for the long-term.  

It's quite stunning how much the price of solar is dropping. For example, from 1998-2009, solar installation costs fell by approximately 30 percent. And since, we have seen an astonishing 70 percent price drop overall in the solar market.  Another key indicator of price is shown in production.  A producing a new utility-scale solar plant is notably less costly than developing a new fossil fuel-burning plant; therefore even production costs are lower, continually driving the cost of solar downward. 

Solar Innovation and Design 

Solar panel innovation and design are turning out to be massive game changers. Modern manufacturing techniques have been a significant motivation for the decline in solar prices. The last 20 years have given us enormous efficiencies in all sectors of industry, whereas the supply side costs have greatly diminished. These modifications allow companies during development to save money and pass those savings on in the form of lower price.

Solar Manufacturing Costs Decline

Drops in production expenses have led to cheaper, more affordable panels. China, in particular, has made massive investments into all sectors of the solar industry over the past 20 years.

Chinese solar panel producers gain in many ways from ample government grants, but also labor costs are held at a meager rate.  In fact,  the average wage in China is approximately $3.60 per hour.  This rate compared to the average hourly wage in the U.S. of roughly $21 per hour, we can see being part of a global market has its advantages.   Cheaper means of production, including those of labor, is indicative of the steadily diminishing global solar costs.  

Solar Futures

All things in the world accounted, consumers should expect to see continued solar price drops. We must assume some changes in policy and opinion; however, the solar energy future seems on track to becoming a popular choice to solve our energy needs.  Despite current trade disruptions, the global economies are continually promoting renewable energies, and solar is one of the most easily individually accessible means of trending our societies toward an ecologically sustainable future. Based on some analysis, the price of solar will continue to fall 4.4 percent each consecutive year through 2022.  That could put even more people in the realm of being able to go solar.  Maybe even you!

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.