Great news for consumers. Solar panels prices have fallen a whopping 70% in the past 2 years. However, solar manufacturing companies are being required to reconsider their old ways of doing business. Only those with the lowest manufacturing costs can continue to profit in this new solar landscape. This is causing a few of the solar giants with too much inventory (like Solyndra) to fall.
However, this new challenge for solar manufacturing companies means solar is becoming more and more affordable for the average American family. In fact, when you consider the generous solar incentives available in your area and the long lifespan of solar panels, you can actually pay hundreds of thousands less for electricity over the next 20 years with solar power.
Aside from the benefits to consumers, it may appear the solar industry is in trouble with the quarterly earnings numbers that are out now for solar manufacturing companies. However, these falling earnings (contributed to falling solar module prices) just mean a new batch of customers that may have not been able to afford solar power in the past will know be able to consider “going solar” a viable option for their family. This new demand could actually spawn a new niche of the market that was previous undiscovered.
These falling prices also mean solar power is quickly becoming a competitive choice in comparison to traditional electricity. We hope the day is coming soon that all Americans, regardless of income, will be able make an easy, cost-effective choice whether they want to power their homes with solar power or power from fossil fuels. Of course we hope they choose solar power.
For more information, see this article in RenewableEnergyWorld.com, A Silver Lining in Declining Solar Prices