User:VogtJr/Solar Panels

Price[edit]

See also: Grid parity

The price of solar electrical power has continued to fall so that in many countries it has become cheaper than fossil fuel electricity from the electricity grid since 2012, a phenomenon known as grid parity. With the rise of global awareness, institutions such as the IRS have adopted a tax credit format, refunding a portion of any solar panel array for private use. The price of a solar array only continues to fall.

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 US$0.60, which was 250 times lower than the cost in 1970 of US$150. A 2015 study shows price/kWh dropping by 10% per year since 1980, and predicts that solar could contribute 20% of total electricity consumption by 2030, whereas the International Energy Agency predicts 16% by 2050.

Real-world energy production costs depend a great deal on local weather conditions. In a cloudy country such as the United Kingdom, the cost per produced kWh 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 modules (as wiring, converters, racking systems and various components) make up about half of the total costs of installations.

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 their 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.