A few factors contribute to the price of solar power.
Among those factors include the type of material, its accessibility, complexity in manufacturing and amount available and needed.
Crystalline silicon is the most common semiconductor material used to make photovoltaic cells otherwise known as PV or solar cells. These cells are built into modules that are brought together to create what we call solar panels.
In general, the larger the array, the more electricity is produced.
The following is a short excerpt from our website regarding Photovoltaic technology:
Photovoltaic, or PV for short, is a technology that converts light directly into electricity. PV is a developing field and utilizes several different technologies: monocrystalline (single crystal), polycrystalline (multiple crystal), cadmium telluride, gallium arsenide, or amorphous silicon deposited as a thin film. The major advantage of monocrystalline cells is their higher efficiency and therefore smaller space requirements. Thin film can be cheaper to manufacture but is significantly less efficient, requiring more area which results in more labor, mounting hardware, and bottom-line costs.
Since monocrystalline technology offers customers a better product along with greater bang for their buck, The Solar Company makes certain that this is the material used for their customers.
This particular post will focus on silicon, our most common and prime solar material friend.
Remember economics? Supply and demand?
As a mini refresher, the following are the four basic laws of supply and demand:
1. If demand increases and supply remains unchanged, then it leads to higher equilibrium price and quantity.
2. If demand decreases and supply remains unchanged, then it leads to lower equilibrium price and quantity.
3. If supply increases and demand remains unchanged, then it leads to lower equilibrium price and higher quantity.
4. If supply decreases and demand remains unchanged, then it leads to higher price and lower quantity.
Since the very beginning of solar panel production and installation, the demand and supply for solar panels have shifted throughout time. Slow or stagnant demand alongside limited supply was the economic beginning of solar panels — an economic status that has continually changed even till today.
Previously, silicon supply was more limited; thus, contributing to the high cost of production and pricing. In the last 10 years or so; however, with operations to produce more silicon supply, prices have been dropping for solar panels making it more affordable for customers as well as more beneficial toward their investment goals.
If enough solar energy can be used to power the residential property or commercial property and outweigh the cost of conventional electricity, then the solution and decision making for customers becomes simple.
Whether it’s strictly to contribute to society in a positive environmental way and/or to lower personal long-term electricity costs, either or both customers goals can be more readily attainable in the proper conditions.
Today, many local government jurisdictions have also provided subsidies and incentives in order to drive a greener environment.
At this rate, it is likely that demand will continue to grow alongside the growth of supply, keeping prices lower than before thereby adding value to the Earth and to the living things that reside on it.