Posts tagged “solar panel”
The following guest article was written by Mathias Aarre Maehlum, an Energy and Environmental engineering student from Norway. He frequently writes on the topics of solar power and other green techs. Read more of his work at his site Energy Informative.
The Lawrence Berkley National Laboratory (LBNL) has recently published a study that looks at the price differences in the solar panel industry in Germany and the U.S. By looking at pre-incentivized prices paid for customer-owned systems (third-party-owned systems were not included in the study), they were able to pinpoint the major differences between the two countries.
In the last five years, German solar panel prices have dropped by more than 50%. Some places in the U.S. are almost on par with German prices, but on average the study found a pretty significant gap:
Image source: Environmental Energy Technologies Division
Three Thoughts on the State of the Solar Market
There has been some upheaval upstream in the solar industry. If you follow the solar business for any reason you know that solar manufacturers are challenged by excess supply and dropping panel prices, just this week rumors that industry stalwart JA Solar was facing possible delisting by NASDAQ surfaced. There have obviously been some high-profile failures of solar manufacturing companies. None of this should have come as a surprise – industry consolidation was expected (or should have been). Consolidation occurs naturally when an industry or technology moves up the adoption curve – new participants, new approaches to technology, new manufacturing techniques, increased scale and competition all accelerate price declines, which inevitably leaves some early industry participants vulnerable because sunk investment forces higher per unit production costs. In the case of solar, a surprisingly rapid drop in prices for photovoltaic panels was further accelerated by significant Chinese government investment in panel manufacturing capacity. The pace of the price drop surprised much of the industry and overleveraged solar manufacturers were caught trying to meet price points that were economically unsustainable. (See more: Wind Tax Credits and the State of Solar: A Discussion With Admiral Dennis McGinn)
An article over on CNET titled Got a deck? Solar panels now a plug-in appliance, suggests that you can buy from Amazon.com a 1,000 watt solar panel system that plugs into your wall outlet for only $1,099. I thought they were really on to something until I read the comments:
This article was written very poorly. At first read, it would appear that the 1,000 watt system costs $1,099.95, but going over to Amazon, that is just the price of one panel whose rating is 240 watts.
At about $4.58/watt, these panels will not produce electricity to pay for the finance charges alone. You will not be able to recover your investment on this, as the panels deteriorate through time.
If the 1,000 watt system costs $1,099.95, it would truly be disruptive as it will be feasible. But no, this solar PV will not cut it, still too expensive. If they can just sell these to about $2/watt, then it would be very worthwhile, given that you will mount these yourself.