Cost and prices

A report from Ernst & Young shows that despite inflationary pressures, solar remains the cheapest source of new-build electricity.

In a new weekly update for pv magazine, OPIS, a Dow Jones company, provides a quick look at the main price trends in the global PV industry.

BloombergNEF says it has recorded a 14% decline in battery prices this year, mainly due to cheaper raw materials, following an unprecedented rise in 2022.

Bernreuter Research says in a new report that it expects polysilicon prices to soon dip below the historical low of $6.75/kg, which was reached in June 2020. It says global demand could reach 1.1 TW by 2027.

Tim Buckley, director of Climate Energy Finance, speaks to pv magazine about the current steep trajectory of solar module prices. He estimates that PV panels prices will end up dropping by 40% this year and predicts the closure of old technology and sub-scale solar manufacturing facilities, both in China and globally.

Also on the rise: U.S. solar electricity generation to surpass hydropower in 2024. China expected to dominate solar manufacturing through 2026. And more.

The National Renewable Energy Laboratory has updated its annual cost modeling tool in light of the Inflation Reduction Act, revealing increased labor costs for utility-scale solar projects and predominantly lower hardware costs due to new manufacturing tax credits.

Also on the rise: Solar cell prices are expected to hit fresh record lows following China’s Golden Week. Aqua Metals, 6K plan first circular supply chain for lithium batteries in the U.S. And more.

By mid-century the levelized cost of energy (LCOE) for solar PV will be $0.021/kWh, a new report by risk management company DNV predicts. The learning rate for solar is predicted to decrease from 26% to 17% by 2050.

Since the pandemic began in 2021, module prices have continued to fall, hitting a two-year low globally in April 2023. In the first two months of 2023, average U.S. module prices were $0.36 per Wdc, down 11% quarter-over-quarter.