It’s growing and fast. Solar system prices dropped by 20% in 2013 and will likely fall between 3 and 12 percent this year depending on the location. This is exciting information for anyone who wants a break from the increasingly high cost of power. The dropping cost of solar means affordability for the consumer and a decrease in harmful environmental emissions.
Photovoltaic (PV) Pricing Trends: Historical, Recent, and Near-Term Projections (2014 edition) reported that:
– Modeled utility-scale PV system prices fell below $2 a watt in 2013, and have continued to decline in 2014, to roughly $1.80 a watt, which is 59 percent below what modeled pricing showed in 2010;
– There is a difference of roughly $2 a watt between the median reported price of the lowest- and highest-priced states for residential and commercial systems (less than 10 kW in size); a similar price range also exists within individual states; and
– There is a wide-range in analysts’ PV pricing estimates, however a number of analysts are now projecting long-term pricing in line with the targets set by the SunShot Initiative for 2020. At these pricing levels, PV is expected to reach widespread grid parity in the US without federal or state subsidies.
“There is still considerable uncertainty as to how low PV system prices will drop in the next five to 10 years,” Feldman said. “However, there appears to be an emerging consensus that the SunShot’s price reduction targets are within reach and more and more likely to be realized. We see this reflected in the fact that many of the current projections are far lower than projections made in the recent past by the same sources.”
Via (Clean Technica)