There is every indication in the market that solar panel prices will continue on plummeting well into the future. There is a number of explanations behind this trend that has been observed over the last decade and looks to take on an accelerated pace in the medium term. This guide examines some of the reasons why this has been the case.
Over the last decade prices have dropped down in a huge way. In the 1970s solar panels companies were starting to thrive and just before they took off properly they relaxed. The most recent years the solar panel price has been reducing with a great force. The change in destiny for the manufactures has begun. They are back in full force taking up the share of the market.
One of the critical elements of a PV panel is polysilicon and it contributes 25% to the total price tag of a given panel. The price of polysilicon has dropped by over 90% in the last few years making it readily available in the market. The supply of this has out grown the demand. When vital components used in the assembly and manufacturing of a panel reduces it will reflect on the solar panel prices. This year it’s predicted that polysilicon suppliers will produce about 28% more than the manufacturer’s orders.
As green energy becomes more in demand governments are supporting this fundamentals by offering great incentives. Alternative source of clean energy is what the governments are looking out for. Manufacturers are being lured to set up plants in different countries by being given stimulus packages. Consumers who want to install solar energy instead of fossil and hydro power are also not being held behind.
New innovations being introduced regularly have served to drive down solar panel prices considerably. Other than making solar panels more efficient, leading renewable energy equipment manufacturers are inventing newer applications for every day uses. Some of these like flexible but effective thin film solar seemed like fantasy a few years ago but have now become established as reliable consumer products.
Market ground rules rarely ever change but new applications and ideas has helped the solar panels prices to reduce in every scenario. They also noted the high cost of panels caused by inefficiencies. Manufacturers and distribution companies have realized the importance of good and safe distribution networks.
Solar panel prices have also reduced for no other reason than the fact that the renewable energy market is essentially driven by supply and demand. While it is true that increased environmental awareness has lead to an increase in the number of homeowners installing clean energy choices, the production volumes are also increasing. Competition among both manufacturers as well as distributors and retailers has helped the current trend.
Alternative energy source has been the topic of many and governments. This is because of its renewability, affordability and efficiency with constant supply. These trends affect the solar market with positive vibes translating to decline of solar panel prices.
Solar Systems USA is a proficient provider of affordable and quality renewable energy solutions. Our website is festooned with a large choice of quality solar panels and equipment from leading manufacturers.