Dropping costs propel solar power projects

In yesterday's issue of FierceEnergy, we told you that news from the Solar Energy Industries Association (SEIA) was solar is the fastest growing market segment in the United States. Today we can see why.

Globally, solar power project costs are predicted to drop by 50% in the next 10 years. Affordable access to cutting edge and renewable technology will be a significant driver of industry advances. The cost of current solar panel technology has dropped significantly - down 40% in the past year - and the return on investment on these projects has been slashed from 25 years to 10 years. Large solar photovoltaic (PV) projects today average $3.02 per watt. By 2020, costs will be $1.45 per watt. This is according to Bloomberg New Energy Finance Chairman Michael Liebreich in a statement.

Two things are necessary to see this prediction become a reality: technological advances and government support. Various government and utility rebates and incentives can cut solar project costs and make the investment more attractive. Federal tax credits or grants will cut the cost of installations even further, and as technology improves, prices will drop.

As part of its Sunshot Advanced Manufacturing Partnerships program, the U.S. Department of Energy recently announced $112.5 million in funding to promote advanced PV-related manufacturing processes over the next five years.

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