A new report from GTM Research predicts that the cost of solar PV panels will drop by 36 cents per watt by 2017.
The PV Technology and Cost Outlook, 2013-2017 report says that the cost of production for the leading Chinese manufacturers will fall from 50 cents per watt in 2012 down to just 36 cents per watt by the end of 2017. The fall in cost will be thanks to improvements in technology, like replacing manual labor with automation technology.
Credit: GTM Research
“Yesterday’s PV cost reduction roadmaps are no longer relevant today,” Shyam Mehta, Senior Analyst at GTM Research, told Greentech Media.
“Three or four years ago, the industry was targeting one-dollar-per-watt costs in 2013; today, we are at 50 cents per watt, and there is currently little consensus on what is a realistic goal for the module supply chain to set for itself over the next three to five years.”
“This is important not only for these manufacturers and their investors, but also for installers and project developers across the globe.”
The sharp decline in price over the last few years – from about $1.10 per watt in Q4 2010 to $0.50 per watt in Q4 2012 -was a result of “cutthroat pricing” and global oversupply, so this innovation-driven decline is a positive change for the global market.
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