Solar Power Costs are Expected to Fall by 15 % -25 % Over the Next Decade

According to the latest report by Wood Mackenzie, the cost of solar energy has fallen by 90 % in the past two decades, and it may by another 15 % to 25 % in the next decade. By 2030, solar energy will be the cheapest source of new energy in the US, Canada, China and 14 other countries.

Ravi Manghani, research director of Wood McKenzie, said : ' With the world efforts to recover from the economic recession caused by the Covid-19 pandemic, while achieving the 《Paris Agreement》 climate and environmental goals, solar energy has a unique role in promoting low carbon emissions.  '

Solar energy is already the cheapest new energy power generation mode in the United States, Spain, Italy and India. Even though Covid-19 is popular, the global installation volume in 2020 is still more than 115G, compared with 1.5GW in 2006.

Although the growth of solar energy is partly driven by government subsidies and environmental goals, solar power is now attractive only by price costs.  Solar energy has become more and more competitive. It is not only a means of decarburization for enterprise buyers, but also a way to reduce the energy cost of enterprises.  '

Over the next decade, Wood Mackenzie expects the market to cut costs further through the development of double-sided panels, larger solar modules and solar tracking technology.

Wood Mackenzie stressed that these projections only take into account technological improvements already fully undertaken in commercial development channels. Assuming any breakthroughs in next-generation solar technologies or other innovations, this could give the outlook further upward space.

Operating costs are also expected to fall over the next decade. Technologies that have been widely used in the wind power generation industry, such as the use of UAVs and thermal imaging for inspection, and the development of artificial intelligence, will make the operation more efficient.

But Wood Mackenzie cautions that the industry is not without risk for some participants. With the decrease of cost and the increase of solar installed capacity, wholesale prices may also decline, thereby reducing profitability. Nevertheless, falling prices will make solar energy replace coal and other more expensive technologies and increase market share.