Solar Panel Prices 2018
HAMMER The outlook that solar panel prices 2018 holds in store for consumers can be seen as good news while the overall impact on the market is a classic reflection of supply outstripping demand. As the leading producer of polysilicon, the key raw material required to produce solar energy, China was eagerly aggressive in production to supply the much anticipated world market demand for the green energy alternative. However, it seems there have been a number of factors conspiring to influence the market.
Solar Power History: Timeline and Invention of Solar Panels
Much has been made of the need to embrace solar energy going back as far as the 1970s yet the lack of substantive incentives diminished the attraction of this alternative energy source until energy costs started to become so cost prohibitive as to threaten the health and lives of consumers. With political encouragement, government subsidies to manufacturers, and the possibility of buy-back options for consumers producing their own excess solar energy, the last decade has been the best for sales. Were we not in the midst of the transition from fossil fuel to green resources, it might prove to be less complicated, but the give and take of market trends have caused the forward progression to falter a bit.
Solar Costs Are Dropping Much Faster Than Expected
The solar panel prices 2018 is expecting will reveal how the imbalance of supply and demand is pushing producers to reduce contract pricing down to about $20 per kilogram, the equivalent of the cost of manufacturing. The first casualty in this need to ease the massive oversupply is the loss of about 90 percent of solar energy providers by the end of this decade and ascertain the end of any of those higher priced producers. As polysilicon constitutes about 25 percent of the final cost of a single photo voltaic (PV) module, the price drop of nearly 93 percent will bode well for consumers despite the anticipation that polysilicon producers will continue to maintain at least 28 percent more than the market demands.
Solar Power Becomes Cheaper than Diesel in India
As governments around the world are gradually recognizing the value of the promise intrinsic to solar energy, they can still impact the growth of manufacturers who would like to do business in many territories. In India, for example, solar power is now cheaper than diesel generators. This is enough to contend with the inefficiency of the national grid, by comparison, as cost has fallen to 8.78 rupees per kilowatt-hour for solar electricity as opposed to 17 rupees for diesel power. This also means the reduction of carbon dioxide released into the atmosphere, which is linked to respiratory problems, heart disease and cancer. It is anticipated that, with continued growth, the past inefficiencies of production bottlenecks and haphazard distribution networks that have forced solar energy costs too high will see innovations in logistics competing with engineering advances that would have seemed mere fantasy just a few years ago.
Deutsche Bank Predicting Huge Distributed Solar PV Uptake
According to Deutsche Bank AG, the solar panel prices 2018 observes will cease their precipitous fall after being pushed to such unprofitable levels that losses will lead to stabilization. Bloomberg has reported a market fall of 47 percent in 2011 depressing margins and forcing significant supply reductions expected to continue over the next year. China’s reducing production by nearly a third to help support prices that had been cut in half from $1.80 per silicon PV module down to $0.90 in December is evidence of this already.
Solar panel prices 2018 faces will also have to contend with the falling price of natural gas as a result of hydraulic fracturing making it possible to extract gas and oil once thought impossible to reach. This process of “fracking” has produced a 30 percent increase in natural gas production since 2005, dropping the price per million BTU from as much as $14 to a few dollars. This can tend to make previous installations of solar panels seem much less of a bargain. It is wise to remember, however, that natural gas prices could just as quickly rise again, making solar panels a good investment. Nevertheless, the solar market can expect to see growth continue at a rate of 10 to 20 percent in the coming years.