Prices of Photovoltaic Solar Panel Systems Fall

Prices of Solar Panels Fall

  Great news for home and business owners, the price of photovoltaic solar panels is falling. Due to the deteriorating condition of the economy, solar panels have fallen 8-10% already with an additional 15-20% drop in price expected. WIth the best rebates available and the prices dropping at this rate, the time for mass implementation of solar is coming.

Most of the decrease in demand for solar panels comes from Spain and Germany, the two countries with the most photovoltaic solar panels installed. In addition, the price of silicon, the key ingredient of photovoltaic solar panels, has been decreasing. Since 2004, high demand and short supply of silicon has driven up its price, increasing the overall price of solar panels.

The increase in price of silicon has pushed more organizations to produce it. An increase in supply, due to decreased demand for the solar panels, has also brought down the overall cost of a photovoltaic solar panel system.

The capacity to mass-produce photovoltaic solar panels is available, but due to the recession, it is on standby. As soon as energy prices increase and homeowners have capital to afford a solar system, the demand for photovoltaic solar panels will increase.

In a recession, it is typically a buyers markets. But in the photovoltaic market of this recession, with decreasing prices and great rebates, it is definitely the right time to buy solar.

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