Solarbuzz.com reported that solar prices dropped again in April. In Europe, prices reached a new record low at 4.54 euros per watt (though only 1 euro cent below last month). In the US, prices fell 4 cents (.8%) to $4.74 per watt. These changes translate into a price per kWh of 20.87 cents (down .5% from March) for industrial users.
In the US, prices weren’t this low since March 2006. They now have ~9.5% to fall before breaking the record low ~$4.33 in 2003-04.
This solarbuzz price watch is based on the purchase of one solar module from 1,300+ retailers worldwide. Factory gate prices can be 50-70% lower, which is why you have heard that modules are selling for less than $2.50 per watt by some indeces.
Prices should drop below the US record low by early 2010. If natural gas prices also lift above $7 per MMBtu (and oil above $70 per barrel) by that time, current federal and state incentives should drive a large growth in the solar market. In 2010, the US solar PV market could finally break the 1 GW level.
Bottom Line: Solar prices are dropping again and fossil energy prices are stagnating. If solar continues to fall at current rates and fossil energy prices recover toward 2007 levels (not quite 2008 highs), then the long-coveted grid parity for solar could become months away rather than years.
Tags: April 2009, prices, renewable energy, Solar
The biggest problem with the viabillity of Solar as a power source is the outrageous upfront cost. It seems true that prices will continue to fall with the decrease in manufacturing costs. First Solar is actually already touting the “lowest industry manufacturing cost” of only $1/Watt, which is insanely low!
April? dont you mean march??, it is just arpil 6, I dont get it.. can you explain why april please…
Great question, Diego-
Yes, I did mean April. It is my understanding that the Solarbuzz Price Index is done by surveying, at the beginning of the month, prices of 1,300+ solar modules via online retailers. See info on their process at:
http://www.solarbuzz.com/Moduleprices.htm
Also, Mohammad, you’re right. It is exciting that First Solar and others are lowering their costs significantly to as low as below $1/watt. Here’s hoping they can continue to lower them and pass those advances on to consumers.
First Solar is a thin-film firm, with lower efficiency than most poly-silicon producers. So their prices should be lower anyway. But if they achieve below 75 cents per watt, we may hit grid parity for new electrical capacity. We’ll see if they can do so by 2012-14 and help lower global greenhouse gas emissions!
Onwards-
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