The period of rising solar panel prices has ended

Many energy experts and analysts believe that solar power will be No.1 energy source in the future. What does solar energy need to dominate global energy market? The answer is quite simple – cheap solar panels.

According to the Solar Energy Industries Association (SEIA), a residential solar system can cost upward of $25,000 per installation though many current reports have solar panels cost in average between $15,000 and $20,000.

Two major factors that decide the cost-competitiveness of solar panels in your area are the cost of energy where you live and how much sunlight you receive.

Lately there has been drop in solar energy prices, mostly because the supply of silicon—the most important material for solar panels—has increased and its prices have fallen.

The global average price was 19.9 cents per watt in the beginning of June, down from 23.7 cents per watt at the beginning of this year, and down from a high during this price spike of 27.8 cents per watt in late 2021. However, the average price for a solar panel delivered in the United States was 38 cents per watt in June, which is double the global average, meaning that the drop in global prices has yet to cause a drop in U.S. prices.

It will take time for the drop in global panel prices to affect the United States but by the current looks of it, the period of rising solar panel prices has ended.