This picture illustrates the dramatic fall of solar photovoltaic prices in the last 35 years. Around the time when I was born, 34 years ago, a 3kW system for a home would have cost about £79,000. Today the same system costs around £6,000 including inverter, cables and installation.
This is an amazing feat. The future of these prices is uncertain for the next years since many geo-political factors are at play. The global crisis, the cheaper modules that China is producing, Americans and Europeans taxing imports in a potential trade war, and many companies going bankrupt are some of the obvious factors. Most forecasts predict lower prices for 2013 but the following years are an open question.
1. the science of solar panels
2. Solar PV ABC’s
* using the ration between $45/W (~1978) to $0.9/W (~2012)