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Solar prices drop more, pressuring panel makers

Reuters -- Solar panels prices have kept marching lower this year, extending steep declines seen in 2011 and keeping pressure on hard-hit manufacturers who have struggled to eke out profits, industry experts said.

Average selling prices for the photovoltaic modules that turn sunlight into electricity have dropped to 80 to 85 cents per watt, a decline of more than 10 percent from levels near 95 cents recorded at the end of 2011, a year that saw prices fall by about 50 percent.

Those price drops have helped boost solar sales and made solar power less dependent on subsidies to compete against fossil fuels. But they also have virtually erased profits at the major manufacturers, such as China's Suntech Power Holdings , Yingli Green Energy Holding, Trina Solar Ltd and U.S.-based First Solar.

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Submitted Apr 15, 2012 By: PrepHermit

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DOS All-Star Author Illinois Posts:668 Points:929,995 Joined:Feb 2003	Message Posted: Apr 16, 2012 3:29:45 PM Ignore DOS Report Abuse Interesting that even with the Germans and Italians lowering their subsidies, the "Global demand for solar panels grew by about 40 percent last year," That sounds like quite a growing demand! But still there is a supply glut. Awesome! Solar is indeed the way of the future!
dhdiesel Veteran Author Riverside Posts:400 Points:44,800 Joined:Feb 2012	Message Posted: Apr 16, 2012 11:04:30 AM Ignore dhdiesel Report Abuse 5Golfer8, good point. The article says, "that saw prices fall by about 50 percent" but omits that the cost of panels rose in price before then. Maybe they're including "B-grade" or "blemished" panels or panels that are dumped after companies go belly-up? I saw panels on Amazon go up in price 50% and now, dropped back down to where they were three years ago...
5Golfer8 Champion Author Tucson Posts:2,143 Points:301,625 Joined:Jun 2011	Message Posted: Apr 16, 2012 10:24:47 AM Ignore 5Golfer8 Report Abuse Where are these cheap panels? I've yet to see the prices of solar come down.
PrepHermit Champion Author New Jersey Posts:8,101 Points:1,644,180 Joined:Aug 2008	Message Posted: Apr 16, 2012 6:19:58 AM Ignore PrepHermit Report Abuse The fact that there is a market glut leads me to believe that the general public has not fully bought in.
molebaby96 Champion Author Tallahassee Posts:2,126 Points:506,140 Joined:Nov 2011	Message Posted: Apr 16, 2012 5:09:28 AM Ignore molebaby96 Report Abuse Stop subsidies.
07skydriver Champion Author Ohio Posts:3,264 Points:983,290 Joined:Feb 2009	Message Posted: Apr 16, 2012 4:39:03 AM Ignore 07skydriver Report Abuse I want it but the break even time is still too long for home solar and wind power generating systems.
wendy1john32 Champion Author Los Angeles Posts:1,757 Points:1,055,495 Joined:Jul 2009	Message Posted: Apr 16, 2012 12:30:25 AM Ignore wendy1john32 Report Abuse Glad to hear that under any circumstances, alternative energy prices went down.
36_ACRES_4_SALE All-Star Author Appleton Posts:999 Points:338,815 Joined:Oct 2011	Message Posted: Apr 15, 2012 10:58:22 PM Ignore 36_ACRES_4_SALE Report Abuse :)
eromitlab Champion Author Huntsville Posts:7,311 Points:1,451,160 Joined:May 2008	Message Posted: Apr 15, 2012 10:36:38 PM Ignore eromitlab Report Abuse Still trying to find the bottom for the solar stocks... they're all way down since the middle of last year, no end in sight it looks like. If it ever bottoms out, though, good money to be made on the winners.
anascom Champion Author Hamilton Posts:1,593 Points:553,115 Joined:Feb 2011	Message Posted: Apr 15, 2012 10:15:38 PM Ignore anascom Report Abuse good news for green energy consumers!
Night Owl Champion Author Toronto Posts:7,555 Points:1,787,575 Joined:Jul 2004	Message Posted: Apr 15, 2012 9:54:48 PM Ignore Night Owl Report Abuse Good that solar panel prices keep dropping.
MidNJ Champion Author New Jersey Posts:7,559 Points:1,173,100 Joined:Sep 2009	Message Posted: Apr 15, 2012 9:51:11 PM Ignore MidNJ Report Abuse The less solar panels cost, the less time it will take to recover the initial investment cost, and the more people will be buying them, which makes mass production more cost effective, which further lowers the cost, etc. It was not too many years ago when a 50 inch plasma TV cost $10,000. Then they went down to $3,000, now they are $1,000 (and less!) Ten years ago very few plasma TV's were bought, now they are very common. The same will happen with solar panels regarding price, and undoubtedly they will become more energy effecient also. [Edited by: MidNJ at 4/16/2012 12:52:14 AM EST]
dhdiesel Veteran Author Riverside Posts:400 Points:44,800 Joined:Feb 2012	Message Posted: Apr 15, 2012 9:32:39 PM Ignore dhdiesel Report Abuse Yeah NHLiveFree, where am I wrong? Do Inverters last longer than an average 10 years? ( A 240v, 7200w inverter would probably cost another $4000)! Do solar panels still produce the same 20 years later (only about 17% efficient anyway). Maybe you can make the numbers look a little better with those imported, made-in-China panels, but you wouldn't buy foreign made panels would you? When the installer goes out of business, where ya gonna get your warranty service, Beijing? Let's see now, 20 year leases... why do you think they're 20 year leases? Anyway, the first thing people should do before INVESTING in PV panels is to upgrade their windows, doors, insulation, appliances and reduce consumption. It's also true, people tend to use more electricity after they install PV's (unless they're off-grid). Really NHLiveFree, you should debunk my 'usual misinformation' instead of hit-n-run... [Edited by: dhdiesel at 4/16/2012 12:36:07 AM EST]
aquarinut Champion Author British Columbia Posts:1,628 Points:436,855 Joined:Jul 2011	Message Posted: Apr 15, 2012 9:17:50 PM Ignore aquarinut Report Abuse Supply and demand...... Now get wall street and government manipulation the h#ll out of energy commodities and development and then.... supply and demand will reassert itself again!
bills299 Champion Author Atlanta Posts:3,371 Points:905,465 Joined:May 2005	Message Posted: Apr 15, 2012 9:15:24 PM Ignore bills299 Report Abuse Wow!!
lesndave Champion Author Texas Posts:3,042 Points:701,380 Joined:May 2011	Message Posted: Apr 15, 2012 8:57:05 PM Ignore lesndave Report Abuse OK
dorisntx Champion Author Fort Worth Posts:2,079 Points:645,855 Joined:Apr 2011	Message Posted: Apr 15, 2012 8:50:57 PM Ignore dorisntx Report Abuse ok
humblepie Champion Author Toledo Posts:34,231 Points:2,372,120 Joined:Mar 2006	Message Posted: Apr 15, 2012 8:50:21 PM Ignore humblepie Report Abuse doesnt seem to hurt the chinese
fracknsave Champion Author Grand Rapids Posts:1,666 Points:58,000 Joined:Mar 2012	Message Posted: Apr 15, 2012 8:44:54 PM Ignore fracknsave Report Abuse nh "Your usual misinformation dhdiesel. Completely wrong." I'm tempted to take your word for it, but just for grins, I suggest you fire for effect for maximum debunking.
leemun Champion Author Utah Posts:5,533 Points:1,040,125 Joined:May 2010	Message Posted: Apr 15, 2012 8:30:51 PM Ignore leemun Report Abuse I just totaled up my electric bill for 2011. If I build panels myself, they could pay for themselves in less than 2 years. Maybe if I wait a little longer, I can just buy them without the work of building them.
Vette1967 Champion Author Albany Posts:5,972 Points:1,276,975 Joined:Jun 2009	Message Posted: Apr 15, 2012 8:29:39 PM Ignore Vette1967 Report Abuse Good news for those who live in an area where solar power is practical.
eppylover Sophomore Author Grand Rapids Posts:231 Points:38,180 Joined:Nov 2009	Message Posted: Apr 15, 2012 8:19:26 PM Ignore eppylover Report Abuse Well, gotta do somethin'. Gotta keep tryin'.
Jeff1944 Champion Author South Dakota Posts:4,234 Points:1,074,620 Joined:Jan 2010	Message Posted: Apr 15, 2012 8:16:17 PM Ignore Jeff1944 Report Abuse More of the government favorites will file for bankruptcy?
NHLiveFree Champion Author New Hampshire Posts:11,095 Points:1,623,180 Joined:Jun 2008	Message Posted: Apr 15, 2012 8:15:31 PM Ignore NHLiveFree Report Abuse Your usual misinformation dhdiesel. Completely wrong.
NHLiveFree Champion Author New Hampshire Posts:11,095 Points:1,623,180 Joined:Jun 2008	Message Posted: Apr 15, 2012 8:14:19 PM Ignore NHLiveFree Report Abuse True words of wisdon orphancarguyPE! The much lower solar panel prices now mean that the labor on the installation is now higher than the average cost of the installed panels. ROI is now lower than ever and it is a great time to get a residential active solar system, esp. at the newly lowered interest rates.
dond Rookie Author Hawaii Posts:89 Points:191,045 Joined:Apr 2012	Message Posted: Apr 15, 2012 8:05:53 PM Ignore dond Report Abuse Im getting close to purchasing Solar!
Venzadriver Champion Author Florida Posts:1,325 Points:360,865 Joined:Dec 2010	Message Posted: Apr 15, 2012 8:00:25 PM Ignore Venzadriver Report Abuse So let's have the Solyndra higher-ups build more in prison.
esq262 Champion Author Asheville Posts:2,902 Points:648,490 Joined:Jul 2011	Message Posted: Apr 15, 2012 7:56:20 PM Ignore esq262 Report Abuse Recent controversy has some part in this.
bills299 Champion Author Atlanta Posts:3,371 Points:905,465 Joined:May 2005	Message Posted: Apr 15, 2012 7:35:49 PM Ignore bills299 Report Abuse Sweet!
TRYWI All-Star Author Appleton Posts:898 Points:282,150 Joined:Jan 2012	Message Posted: Apr 15, 2012 7:14:21 PM Ignore TRYWI Report Abuse otay
orphancarguyPE Champion Author PEI Posts:3,848 Points:734,990 Joined:Jan 2011	Message Posted: Apr 15, 2012 6:43:36 PM Ignore orphancarguyPE Report Abuse Like the nutty high subsidy on ethanol (thankfully disappeared) artificial and unsustainable for the long term high subsidies are great for kick-starting industries at start-up time, but the perils of NOT adjusting them continually (ie, downwards, in a responsible progression) as the industries ramp up shows what can happen, as in these news reports. Who would have thought that everyone INCLUDING the Chinese would be having solar photovoltaic (PV) panel industries/companies going insolvent/bankrupt? Due to overproduction/glut, of course, which doesn't mean that investing in solar PV was wrong, just the method used was stupid. Much more sense to 1) subsidize/guarantee loans of companies actually starting up to get running, with provisions NOT to allow any portion to go to executive paydays--as in the real world, those will have to come from actual profits on actual sales. 2) once running, made adoption of the technology/industry thus kick-started part of an increasing but reasonable mandate, and as you are increasing the mandate, decrease the subsidy. So, with solar PV, now might be the time to buy and install to reduce your utility costs forever.
dhdiesel Veteran Author Riverside Posts:400 Points:44,800 Joined:Feb 2012	Message Posted: Apr 15, 2012 6:43:11 PM Ignore dhdiesel Report Abuse Average $20 to $40k home solar system still takes 15-20 years to recoup your investment. By that time, the panels may not produce much, your inverter and charge controller will have been replaced at about the ten year point and you'll probably have moved before then...
GenoAR Veteran Author Arkansas Posts:429 Points:762,945 Joined:Oct 2008	Message Posted: Apr 15, 2012 6:24:25 PM Ignore GenoAR Report Abuse No wonder that Solyndra went broke ?
PDQBlues Champion Author San Diego Posts:7,074 Points:1,448,325 Joined:Jan 2009	Message Posted: Apr 15, 2012 6:16:50 PM Ignore PDQBlues Report Abuse Great news! The lower the price for these panels, the lower price it will be to generate electricity and the more people will buy solar.
mike1881 Champion Author Fayetteville Posts:1,300 Points:565,400 Joined:Feb 2011	Message Posted: Apr 15, 2012 6:08:13 PM Ignore mike1881 Report Abuse solar power is not worth the effort.