Should You Go Solar? Let’s Answer That By Looking at the Pricing Trend

Should You Go Solar? Let’s Answer That By Looking at the Pricing Trend

Solar energy has been around for far longer than most people believe. The technology has undergone several changes throughout its evolution, including better efficiency and, finally, lower pricing, allowing it to be used in residential and commercial settings.

What are the current solar panel pricing trends?


Residential solar panel prices have continued to fall due to increased efficiency, government subsidies, and improved technology.


A domestic PV system may have cost more than $50,000 ten years ago. In the last several years, prices have plummeted by more than 70%, with the average upfront cost for a 6 kW system falling between $15,400 and $18,800. Trends have persisted until recently, with a study from the National Renewable Energy Laboratory showing that the price per watt of solar energy fell by 5% in 2018.

Should you go solar?


Your payback period or return on investment is determined by several factors, including regional tax incentives, local energy pricing, and the quantity of sunshine available in your location each year. If you’re considering going solar, it’s worth your time to do some research.

Supply-chain interruptions are a problem.


Global supply disruptions are challenging industry and international governments as they try to resurrect pandemic-ravaged economies. The solar sector is no different, particularly as it strives to sustain its impressive growth rate. According to an IMF blog, Pandemic and climate-related disruptions led to shortages of essential inputs and reduced manufacturing output throughout the world.

Energy shortages exacerbate the supply situation.


Edurne Zoco, IHS Markit Executive Director of CleanTech and Renewables, agrees with Manghani that solar module prices will not fall anytime soon.

“Manufacturing constraints on mainland China, a focus on the local market, and higher module pricing will define the fourth quarter of 2021, extending developer and offtake uncertainties into 2022. Based on the module manufacturing cost prediction and solid pricing in the local market, we do not expect significant price changes before the second half of 2022. “In a 12 October insight piece, Zoco wrote: