Commodity Prices Of A Solar Panel

Some people in the pv industry say that solar modules are commodities.

Commodity prices of a solar panel.

Most solar panels last for 50 years have a 25 year warranty and start generating a return on investment after 8. This relates directly to the output of a solar panel in watts. 14 22 is an acceptable efficiency range for panels produced by major manufacturers. Solar power currently accounts for only 1 percent of total renewable energy sources but it s one of the fastest growing areas in the commodities arena.

But to view solar panels as a commodity in the same way that eggs or copper are commodities is simply inaccurate. Governments around the world are in the process of announcing massive infrastructure spending programs dedicated to harnessing the sun s power and turning it into electricity and other forms of energy. A solar panel s efficiency rating refers to the amount of sunlight the panel can convert into usable energy. Bnef estimates that by the end of 2018 commodity solar panel prices will drop to 0 24 per watt.

It is expensive but it needs to be compared to a brand new premium roof and a 12 3 kw solar system. Silver trading solar power. A 12 3 kw system the same as the solar panel system quoted above ends up costing 48 128. On a longer time horizon the company is still impacted by changes in commodity solar panel performance and technology but these contracts will mute the impact if prices fall.

The average cost to install solar panels is from 10 626 to 26 460 after tax credit for a 6kw to 12kw system to power an entire house. When demand dropped in mid 2018 solar panel prices went with it. Certainly panel prices have dropped rapidly over the past few years and talk has abounded of more customers making product choices based primarily on cost. If they re right then solar modules are the only commodity in the world that comes with a 25 year warranty.

The average solar panel payback period is 7 to 12 years and solar energy saves 600 to 2 000 per year on electricity costs.