Solar Panel - Price

Price

Average pricing information divides in three pricing categories: those buying small quantities (modules of all sizes in the kilowatt range annually), mid-range buyers (typically up to 10 MWp annually), and large quantity buyers (self-explanatory—and with access to the lowest prices). Over the long term there is clearly a systematic reduction in the price of cells and modules. For example in 2012 it was estimated that the quantity cost per watt was about $0.60, which was 250 times lower than the cost in 1970 of $150.

Real world prices depend a great deal on local weather conditions. In a cloudy country such as the United Kingdom, price per installed kW is higher than in sunnier countries like Spain.

Following to RMI, Balance-of-System (BoS) elements, this is, non-module cost of non-microinverter solar panels (as wiring, converters, racking systems and various components) make up about half of the total costs of installations. Also, standardizing technologies could encourage greater adoption of solar panels and, in turn, economies of scale.

For merchant solar power stations, where the electricity is being sold into the electricity transmission network, the cost of solar energy will need to match the wholesale electricity price. This point is sometimes called 'wholesale grid parity' or 'busbar parity'.

Some photovoltaic systems, such as rooftop installations, can supply power directly to an electricity user. In these cases, the installation can be competitive when the output cost matches the price at which the user pays for his electricity consumption. This situation is sometimes called 'retail grid parity', 'socket parity' or 'dynamic grid parity'. Research carried out by UN-Energy in 2012 suggests areas of sunny countries with high electricity prices, such as Italy, Spain and Australia, and areas using diesel generators, have reached retail grid parity.