Solar energy is on the verge of a dramatic change that will provide Australians with more affordable access to sustainable electricity. According to a recent analysis by Climate Energy Finance, falling raw material costs and an increase in global solar panel output might result in an annual decline of 10% in solar power prices for the rest of this decade.
According to the Solar Pivot study, created by experts Tim Buckley and Xuyang Dong, the price of polysilicon, a critical component for creating solar panels, has dropped by two-thirds.
Solaright’s blog will delve deep into the numbers. This trend has resulted in a huge drop in panel prices, which have recently reached as low as US18c (A26.7c) per watt.
Solar Panel Industry – Throughout the Planet
Particularly, the worldwide solar sector installed a record-breaking 268 gigatonnes in the previous year alone, with projections indicating a possible spike to an astounding 1,000 gigatonnes by 2030.
According to the paper, such a massive expansion might have far-reaching effects on global energy and power markets.
To meet environmental goals and diversify their energy sources, countries such as the United States, the European Union, and India are boosting their investments in solar energy, spurred in part by the desire to counterbalance China’s dominance in renewable technologies, notably solar power.
- The United States is making considerable strides under the Inflation Reduction Act by providing $US369 billion to improve energy security and manufacturing.
- This plan is predicted to more than quintuple annual panel output to 40 gigatonnes by 2024 and more than double solar installations to 40-50 gigatonnes annually by 2030.
Nonetheless, the research emphasizes that China is leading the way with plans to establish 12 solar manufacturing behemoths, each with an annual module output capacity of 30 gigatonnes. Furthermore, China’s ambitious solar installation objectives of 120-140 gigatonnes in 2023, intending to triple to 260 gigatonnes by 2030, represent a significant threat to other countries.
Tim Buckley stressed that catching up to China’s speed is a huge issue, as China consolidates its control in the global polysilicon industry, with a 90% share expected by the end of this year.
Module prices are projected to fall significantly as production capacity expands. Buckley estimates that by the end of the year, module costs will be 30% to 40% lower than they were 12-18 months ago.
- Experts in the area, such as Renate Egan of the Australian Centre for Advanced Photovoltaics, back up the report’s conclusions. They emphasize the lower prices of solar energy as compared to other energy sources such as coal.
- Egan also underlines Australia’s ability to leverage on competitive advantages in the solar supply chain, such as mineral processing and components such as glass, aluminum, and polymers.
Among these hopeful improvements, SolarQuotes CEO Finn Peacock notes that China’s solar panels have already become 15% cheaper this year.
Pairing this trend with a somewhat lower Australian currency, he predicts a 10% drop in panel pricing for Australian solar panel installers over the preceding year. However, a 13% fall in the solar incentive scheduled for next January may counteract part of this decline.
A 10-kilowatt rooftop solar system now costs roughly $11,000 per family, including the subsidy. This refund, which is presently worth roughly $4,400, will be reduced to $3,840 in the following year.
The announcement of rising power rates has resulted in a rise in online solar queries, with a 30% increase in interest compared to the same period last year. Finally, the solar energy situation is changing dramatically, providing Australians with more inexpensive access to sustainable energy.
With raw material costs falling and global solar production increasing, the scene is set for a future in which solar power becomes an even more affordable and accessible choice for individuals and businesses alike. Contact Solaright for a customized quotation!