Price of solar panels to drop to $1 by 2013

The price of a solar panel is falling faster than was expected. According to a report from Ernst & Young prices of solar panels are falling so fast that by 2013 they will be half of what they cost in 2009. Ernst & Young also think that because of this development solar power will be an important energy source for the United Kingdom in the future.

The average one-off installation cost of solar PV panels has already dropped from more than $2 per unit of generating capacity in 2009 to about $1.50 in 2011. Those rates of decline will continue according to broker reports and industry analysis. Prices are expected to fall close to the $1 mark in 2013.

Solar PV is currently viable in the United Kingdom and many other countries due to government subsidies given out via feed-in tariffs. However, new analysis suggests that falling PV panel prices and rising fossil fuel prices could together make large-scale solar installations cost-competitive without government support within the decade.