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Sources Say Solar Costs Will Decrease, Demand Increase | Solar Energy USA Blog Archive

Sources Say Solar Costs Will Decrease, Demand Increase

Posted on Monday, November 21st, 2011 at 4:57 pm by Solar Energy USA

Solar energy doesn’t need to be cheaper than power produced by massive fossil fuel-powered plants to become adopted widespread. Instead, when homeowners can install solar panels and produce their own power at a lower cost than buying power from utilities, as the majority of us do now, demand for more solar energy will rise rapidly.

Just as Google was a disruptive technology in the advertising sector, solar will be for energy.

A new report says the installed cost of residential solar power could fall as low as $3.00 dollars per watt by 2016. At that price, solar energy would be competitive with utility-scale power plants.

According to Richard Keiser, a former Sanford Bernstein analyst who’s now president of Keiser Analytics, there will be more than 100 gigawatts (GW) of solar panels in use in the U.S. in five years, roughly 25 times the current total. Bloomberg New Energy Finance estimates that the installed cost will fall to about $2.38 a watt globally in 2015 (read the full story here).

The declining price of going solar is being driven by falling costs for the raw materials as well as improved manufacturing processes. Solar modules now sell for about 99 cents a watt, down from $1.79 at the beginning of this year, according to New Energy Finance.

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