Price decline of solar panels(sun and the solar system)

  Price drop Solar: Good for buyers, bad for producers

(Marin Pasarić, Tomislav Majanović) - The global solar industry is currently topical unexpected paradox; manufacturers barely tie ends meet, while for end consumers more optimistic forecasts.

Specifically, Lux Research yesterday released its latest industry analysis which predicts a large and rapid increase in the installed capacity of solar energy as 15.5% per year, while the producers anticipated earnings in 2016. not move from the dead point. In accordance with the aforementioned dynamics of falling product prices, Navigant Consulting report yesterday confirmed that the cost of solar panels this year have fallen by as much as 20 percent.Reports drop in prices associated with fierce competition among manufacturers of solar photovoltaic panels, which continuously reduces the cost per watt. For manufacturers of solar panels this means a reduction in margins and a reduction in care whether demand will be able to accept the totality of production capacity.For consumers, this means that the price drop will be installing solar roof panels will be cheaper than it ever was, but an increase in the so-called. Solar leasing that should take precedence over a clean purchase solar installations.Shay Kann, solar industry analyst with GTM Research's says: "Companies that will offer solar leasing option will be able to expand their business into new areas where this kind of projects otherwise would not have launched on." Current price drop yet they felt most companies dealing with selling and installing solar systems is customers themselves, since a large part of the solar "pie" goes on the actual installation of the system.Instead of buying panels, solar leasing consumers via pay a monthly fee that reduces the overall bill. It may be a pre-set fee that will be paid over 20 years or under contract to purchase energy that the consumer who rents the panel agrees to buy electricity at a price lower than the network.Companies that install or finance these projects except the mere possession of solar panels, earn money thanks to government incentives for renewable energy. Few companies in the U.S. began with the implementation of these projects in California that would then expand their business to more than 20 states.The path to a network parity? - Regardless of how solar energy is delivered to consumers, technology and higher production rates ultimately reduce the cost per watt of energy. If the price drop of solar installations continues, we can expect almost getting solar electricity at a price lower than that provided by network operators and distribution system that would come to power parity.Most just reaching parity bit is considered a milestone which will contribute to the wider adoption of this type of energy. But, according to Lux Research, for residential solar installations reaching power parity is expected only within a few years. In addition to increasing the adoption of this energy source, power parity will foster the development of additional solar leasing because more consumers will be interested in this type of installation.There are key drivers in the adoption of solar energy incentives and the current retail price of electricity. The report says Lux reasearch that "future projected increases retail cost of electricity will be sufficient to increase the demand for solar installations even in countries that do not have the incentives."Due to falling prices and reduced demand for solar installations in Germany, which is normally the largest global consumer of solar energy, the pressure to further reduce the cost of installation. As stated by Paula Mints, a solar analyst at Navigant Consulting, "The photovoltaic industry has to develop a business strategy that will not rely on incentives, but will be market competitive."Autor: © Portal croenergo.eu (M.P., T.M.)