Falling Solar Panel Pricing

Cost of solar panels over time.

Falling solar panel pricing.

A tale of falling prices. Over a decade ago in 2009 the cost of a solar panel installation was 8 50 per watt. Now the outright cost of a typical home installation ranges from 16 200 to 21 400 which is a 62 average annual decrease. In addition to solar panel efficiency increasing dramatically solar panel producers have significantly improved their manufacturing processes.

Key takeaways about solar panel cost the cost of solar in 2020 is about 12 920 after tax credits 2 91 watt the cost of solar has fallen over 20 over the past 5 years. It is unlikely that we will see steep or sudden falls in pricing again because at the wholesale level individual solar panels are now only in the range of 0 40 per watt to 1 10 per watt depending on the quality of the brand of solar panel. The solar industry today looks very different. Solar companies that purchase in bulk typically spend 0 75 per watt whereas homeowners spend 1 per watt.

One 150 to 300 watt solar panel costs 112 to 450 on average or between 0 75 to 1 50 per watt depending on the type of panel energy efficiency rating and size. As of 2020 the federal solar tax credit has reduced to 26 and will go away completely in 2022. The cost of solar has dropped significantly in the past several years. The easiest way to calculate the average cost of solar panels is to look at its price in dollars per watt w which is relatively consistent across the united states.

Solar power is dropping faster than expected as the coronavirus stifles demand according to a report from wood mackenzie.