Photovoltaic panel prices to drop in 2025

Will solar panel prices drop 40% this year?

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.

Are solar panels going down in 2023?

Having already fallen to 60% in 2023 — a year-over-year decrease of about 10 percentage points — the rate is set to drop further still, to below 40% in 2024 to 2028. Utilization rates in China, the world leader in solar panels, are set to be even lower than the global average in the coming years, the IEA said.

Are solar panels getting more affordable?

Experts say solar panels have gotten significantly more affordable in the last decade, and new federal incentives will only drive prices lower. There's a big new solar tax credit in town. A federal incentive expanded in 2022 through the Inflation Reduction Act can offset 30% of the cost of a residential solar installation.

How many GW of solar modules are there in 2023?

The organization said some 90 GW of modules were sitting in warehouses in the European Union at the end of 2023 with a further 45 GW in the US, though some manufacturers have disputed the scale of the stockpiling. Nevertheless, the ongoing oversupply led to module spot prices dropping roughly 50% between January and December 2023, the IEA added.

Will solar panels save money?

This will likely translate to cost savings for consumers. With economies of scale, and the potential for new domestic solar manufacturing facilities, the solar panels themselves will become cheaper and easier to ship -- addressing some of the international supply chain issues currently facing the industry.

Will China be the largest solar import market by 2028?

As such, the region is expected to be just 10% self-sufficient by 2028 and remain the largest solar import market, continuing to predominantly rely on Chinese panels. S&P Global Market Intelligence reporter Alex Blackburne produces content for distribution on S&P Capital IQ Pro.