Even record low cost solar prices are expected to compete with traditional power

Polaris solar PV net news: in recent years, policies and market driven by solar energy system installation growth at the same time, solar energy system installation price (the installed price of solar energy) has sharply declined.

Recently, the latest data shows that solar prices continued to decline in the short term, will not slow. In 2015, the total residents of rooftop solar power system installation price 5%, the total installed price of large-scale solar power plants decreased by 12%. Prior to that, installation of solar system prices have hit a record low, therefore, 2015 solar prices fall further, to a large extent suggests that the next few years, the cost of solar power company is expected to compete with traditional power generation.

In the United States two reports of the Lawrence Berkeley National Laboratory, researchers conducted a comprehensive analysis of the phenomenon of solar energy prices continued to fall. Among them, tracking the Sun (Nineth volume) (the “Tracking the SunIX”) analyzes the roof installed in distributed solar market price trends, the solar power company 2015 (“Utility-Scale Solar 2015”) are mainly aimed at large-scale solar power stations to grid electricity.

Comprehensive reports, since 2010 the price of solar power generation system, there’s a huge drop. Meanwhile, the price per unit capacity ($/WDC) calculated on large-scale installation of solar system prices are always cheaper than small systems.

Installation prices refer to build the cost of running all of the solar system, other than the install itself, including solar panels, electronic systems and parts costs. Solar Panel prices have remained relatively stable since the 2012, which means total install price change is to a large extent caused by a panel other than the cost, worth attention. For example, the inverter is the device of solar energy systems, will have an inverse of DC into AC power Panel and then export to the grid, inverter costs will cause a decline in the price of solar power. Additionally, like clients, system design, equipment, installation, licensing, and other “soft” cost reduction is the solar system installation price reduced.

Both reports stressed that median price trend of solar energy at the same time, whether for roof systems are systems of power companies whose price volatility remains high. For example, in roof systems installed in 2015, 20% system price is less than $ 3.30 per watt, while another 20% the system cost more than $ 5.00 per watt; and similarly, for system power company, 20% system priced below $ 1.60 per watt, another 20% system prices above $ 2.60 per watt. This is mainly due to the different installation prices there are still large differences between regions, with the specifications of the solar system is possible only in a certain area are cheap, while in other areas the prices are relatively high.

At the Lawrence Berkeley Laboratory in the two latest reports released, probably the most interesting data to the number of power purchase contracts (power purchase agreements,PPAs) changes in price trends. And installation of different prices, the prices reflect the price of purchased large quantities of solar power through long-term contracts. Researchers analyzing the five regions, the latest data available show that in the year 2015, four per MW solar power purchase contract price dropped to $ 50 (5 cents per watt). According to the electric power industry’s rule of thumb, average market price of about between the per megawatt from $ 30 to $ 40. Therefore, solar energy prices if the downward trend is maintained, will soon be able to compete with conventional power generation.

Looking to the future, in all types of solar energy falling prices at the same time, United States renewable energy investment tax credit extended to 2019, which will promote the United States solar market continued to expand in the coming years, in turn, the solar market expansion will create a more favourable economic factors for the development of solar energy. Turning point in the development of solar energy industry is seeing that solar energy will be more affordable than traditional means of generating electricity, will show how market dynamics and development situation, let us wait and see.

Original title: the price of solar power and even record low

Posted in Solar Charger.