2015/01/22

Why solar costs will fall another 40% in just two years

Why solar costs will fall another 40% in just two years
Even the world's biggest fossil fuel producers recognise that solar is winning the cost war. In the next two years, solar costs will fall even further - as much as 40 per cent. Here's how.
It’s been one of the big themes at the World Energy Future Conference here in Abu Dhabi. Solar, and other technologies such as wind power, are no longer more expensive than traditional fossil fuels in many parts of the world. Indeed, they are cheaper.

A day earlier, the International Renewable Energy predicted that solar costs would fall substantially in coming years, underlying its competitiveness with fossil fuels. If government policy makers did not understand this, IRENA said, then they risked making bad decisions about their energy future.

While much of the cost reduction over the last 5-10 years has resulted from polysilicon price reductions, future cost reductions will necessarily come from non panel related balance of system costs.

Inverter and racking cost are also declining.
Installation costs will fall by one third in the US.
Sales/Customer Acquisition Cost will fall even further.
   

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