Solar Panel Prices Down By 70 Percent From 2009

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Solar Panel Prices Down By 70 Percent From 2009

Posted On : Sep-16-2011 | seen (569) times | Article Word Count : 549 |

Those involved in the solar industry can look at the decline in solar panel prices as a low point or they can view it as an opportunity to finally offer solar power as a viable, sensible, and affordable alternative to fossil fuels. The former option leads to failure; the latter brings jobs and profits. Which do you prefer?

Quarterly earnings statements from July tell a tale that a select few fear, but many will benefit from. The price of solar panels is down nearly 70% in the past twenty-four months, bad news for investors and stock holders, but good news for the consumer. Even as word of the most recent renewable energy tragedy hits the presses, a ray of hope is being inserted into the US economy. Solyndra, a California manufacturer of innovative cylindrical solar systems, filed Chapter 11 recently. The cost to produce electricity with their product was $3.25 per watt. That’s the bad news. The good news is that they went out of business because industry production standard right now is down to $1.00 per watt in California. That’s a number that can compete with fossil fuels.

One of the biggest knocks on renewable energy has always been the cost of producing electricity. We can preach to America about how much cleaner and healthier for the environment it is, how it lowers our dependence on foreign oil, and how fossil fuel emissions are the reason for smog and acid rain, but ultimately the determining factor in the purchase of renewables is price. If the cost is high, both commercial and residential consumers are going to go with the alternative. It’s easy to turn a blind eye to environmental issues when the almighty dollar is at stake.

If you read the headlines from last week, you’ll see that most of the stories about Solyndra’s bankruptcy filing are forecasting doom and gloom for the American solar industry. They’re saying we can’t compete with the Chinese, that solar has once again proven to be impractical, or that this closing is just the tip of the iceberg. They’re citing the drop in solar panel prices and declaring it to be a bad thing, but for whom? Granted, investors in other solar companies might be taking a beating right now, but if they hold their stock the lower prices will lead to increased demand and they’ll be fine. That’s simple business math. Affordability leads to increased sales numbers.

For those pursuing a career in solar panel manufacturing or installation, this is good news also, and for the same reason. Lower end user prices mean that companies need to cut their costs and increase production to compete. The more units you can put out; the lower the cost per unit. It’s the small companies that will feel the brunt of lower prices in the short term. Larger corporations will adjust accordingly and jobs will be more numerous as they expand to meet the increased demand. How is any of this bad for America? Our firms can compete with theirs if we make the right decisions.

Idealism is a wonderful thing and environmental consciousness is essential if our children are going to have a future, but profits and losses are realities that determine success or failure for any industry. Those involved in the solar industry can look at the decline in solar panel prices as a low point or they can view it as an opportunity to finally offer solar power as a viable, sensible, and affordable alternative to fossil fuels. The former option leads to failure; the latter brings jobs and profits. Which do you prefer?

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<h1>Solar Panel Prices Down By 70 Percent From 2009</h1> Author: <a href='http://www.articleseen.com/profile_BrockMorrison.aspx'>BrockMorrison</a> Quarterly earnings statements from July tell a tale that a select few fear, but many will benefit from. The price of solar panels is down nearly 70% in the past twenty-four months, bad news for investors and stock holders, but good news for the consumer. Even as word of the most recent renewable energy tragedy hits the presses, a ray of hope is being inserted into the US economy. Solyndra, a California manufacturer of innovative cylindrical solar systems, filed Chapter 11 recently. The cost to produce electricity with their product was $3.25 per watt. That’s the bad news. The good news is that they went out of business because industry production standard right now is down to $1.00 per watt in California. That’s a number that can compete with fossil fuels.

One of the biggest knocks on renewable energy has always been the cost of producing electricity. We can preach to America about how much cleaner and healthier for the environment it is, how it lowers our dependence on foreign oil, and how fossil fuel emissions are the reason for smog and acid rain, but ultimately the determining factor in the purchase of renewables is price. If the cost is high, both commercial and residential consumers are going to go with the alternative. It’s easy to turn a blind eye to environmental issues when the almighty dollar is at stake.

If you read the headlines from last week, you’ll see that most of the stories about Solyndra’s bankruptcy filing are forecasting doom and gloom for the American solar industry. They’re saying we can’t compete with the Chinese, that solar has once again proven to be impractical, or that this closing is just the tip of the iceberg. They’re citing the drop in solar panel prices and declaring it to be a bad thing, but for whom? Granted, investors in other solar companies might be taking a beating right now, but if they hold their stock the lower prices will lead to increased demand and they’ll be fine. That’s simple business math. Affordability leads to increased sales numbers.

For those pursuing a career in solar panel manufacturing or installation, this is good news also, and for the same reason. Lower end user prices mean that companies need to cut their costs and increase production to compete. The more units you can put out; the lower the cost per unit. It’s the small companies that will feel the brunt of lower prices in the short term. Larger corporations will adjust accordingly and jobs will be more numerous as they expand to meet the increased demand. How is any of this bad for America? Our firms can compete with theirs if we make the right decisions.

Idealism is a wonderful thing and environmental consciousness is essential if our children are going to have a future, but profits and losses are realities that determine success or failure for any industry. Those involved in the solar industry can look at the decline in solar panel prices as a low point or they can view it as an opportunity to finally offer solar power as a viable, sensible, and affordable alternative to fossil fuels. The former option leads to failure; the latter brings jobs and profits. Which do you prefer?
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