It has recently been stated that there has been a huge drop in the price of solar energy panels. Unfortunately, this brings both good and bad news. The good news is that more people are now looking at solar energy as a possible way to lower their energy bills. The bad news is that the industry is still not generating a lot of profit because of how low the cost of these panels has become.
According to a report from Clean Edge, the worldwide distribution of renewable energy technology grew in 2012. This includes wind, biofuel and solar energy. However, the income for this industry remains about the same. This is due to the ever plummeting price of solar photovoltaic panels.
Despite an increase in sales, the revenue for all three of these technologies only increased by 1% around the world. This brings their total earnings up to about $249 billion in 2012. This information was released in the 2013 Clean Energy Trends report, which was handled by Clean Edge.
Ron Pernick, who is the founder of Clean Edge, said that they always knew that installing twice as many solar panels would reduce the prices of these products by about 18%. These prices are now falling due to the sector looking to expand extremely quickly. The only way to do that is to make the product dirt cheap.
Clean Edge went on to point out that solar revenues were just about $2.5 billion in 2000. Prices were eventually set to cost the same as traditional energy sources. However, people did not think that this would happen until 2020. Now, however, solar energy prices have already plummeted from $7.50 per watt to $2.50. This is a huge decrease. Not only that, but people say that the price of solar energy will fall to $1.50 within the next five years. This would be about the equivalent as saying it would cost between $0.05 and $0.12 per kilowatt hour.
According to Clean Edge, reaching that $1.50 per watt would be like finding the “holy grail” for the industry. This would mean that solar energy would, not only be a clean energy source that people can use, but it would be an affordable energy source.
Renewable energy is something the whole world is interested in. Big countries with a lot of land mass believe that they can generate more than enough energy from renewable energy. In fact, they believe that they could export their leftover energy to other countries that don’t have a lot of land mass. This goes double for countries that are landlocked and can’t generate energy from waves or offshore wind farms.