Over the past decade, the average cost of solar panels has fallen by about 90 percent. This is what the business magazine Dagens PS writes in an article and refers with data from Bloomberg. Technology as well as production have moved forward at a rapid pace to meet today's need for sustainable energy production.
Now manufacturers are finding it increasingly difficult to squeeze prices through the manufacturing procedure. This means that even higher demands are placed on developing the performance of the solar cells. In addition, energy storage is the key component in squeezing costs as a whole.
"More powerful and highly efficient modules will lower costs across the value chain of the solar project, supporting our prospects for significant sector growth over the next decade," according to an analyst from Fitch Solutions in a research report, Dagens PS writes, referring to Bloomberg.
Prices are under pressure - but commodity prices are rising
In 2011, the price of solar panels was $1.59 per watt. Now, ten years later, the cost is $0.20 per watt. The reasons are, among other things, larger factories, automation, streamlining of production methods, lower labour costs and less material waste. At the same time, commodity prices are rising and this makes it difficult to save at the production stage.
For a long time, the maximum capacity for most solar cells has been 400 watts. Since last year, solar cells with a capacity of 500 watts have started to enter the market and this year a 700 watt model was introduced. More electricity on the same surface results in smaller plants and thus costs are reduced by, among other things, the construction and the ground on which it is installed. As a result, there is still interest in pushing prices down and making the production of solar energy more easily accessible.
"The first 20 years of the 21st century saw huge price reductions in module prices, but the rate of the reduction began to slow significantly over the past two years. Fortunately, new technologies will create further reductions in electricity costs," Xiaojing Sun, global solar power research manager at Wood Mackenzie Ltd, told Bloomberg.
