How solar panels cost is Going to Decrease at a Fast Rate?

The solar panels cost continues to decrease annually by more than 30%. Compared to the prices in the 70s, today solar panel installation costs 100 times less. The fact is that solar power is a clean source of energy and it is produced at the place where power is required. There are no fluctuations in cost because of increasing prices of coal, oil or nuclear fuel. Two things in the energy sector that drive the need for developing solar energy, excluding the renewable benefits of solar power, are that:rn1. People no longer want to bear the burden of spending billions on trying to make coal cleaner.rn2. People no longer want to spend billions on government’s loan guarantees for nuclear power technology after the incidents in Japan. It is expected that solar panels cost are going to fall by 50% in this decade. And, the key to this reduction in prices lies less at the level of silicon and thin-film technology and more at the policy and process levels. According to leading solar energy organizations, the solar panels cost are going to fall in the following areas: • Scale of manufacturingrn• Efficiencyrn• Installationrn• Appropriate sizern• Appropriate placementrn• Improvement in interconnectivityrn• Elimination of market monopoliesrn• Process • Policyrn• Financingrn• Hybrid systems Some of these points are elaborated here in detail for their impact on solar panels cost. Scale of Manufacturing There are a dozen Chinese manufacturers that produce more than 1 gW of solar panels. Many factors have helped them lower their solar panels cost. This includes higher manufacturing volume, lower cost of labor and favorable policies from the government. It is estimated that China has an advantage of 20% to 30% for manufacturing costs. Efficiency Even though China may be leading with its c-Si cost factors, but there are companies that rely upon innovative thin-film technology to bring down their costs. One such manufacturer is regularly growing its annual manufacturing capacity and it has placed its manufacturing units in lower-cost countries like Vietnam. In 2010, the company enhanced the efficiency of its CdTe module and brought down its solar panels cost from ¢78 to ¢75 per watt. Even GE is planning to install a 400 MW CdTe solar panel plant by 2013 as it has already achieved an efficiency level of 12.8%. Even Honda is making efforts in enhancing efficiency in CIGS thin film technology. With the intensification in solar panels cost battles and efficiency battles, investors and traders are betting on these new innovative companies. Installation The annual production of electricity from a solar panel system is dependent upon many factors, with the quality of installation being a primary factor. When it comes to solar panel installation a square feet can either be used optimally or inadequately. The panels must have the right slope, and the quality of the wire and the overall installation are going to affect the output and longevity. Appropriate Size It is expected that highest amount of growth in the U.S. market is going to be mid-market segment between 100 kW and 20 MW. Some of the examples include: • Urban commercial roofsrn• Parking areasrn• Industrial yardsrn