Solar panel prices – drop by half over the last 5 years

Solar panel prices – drop by half over the last 5 years

We take a look at the trend for solar panel prices over the last 5 years. What we see is a 50% reduction in the prices for consumers from 2006 to 2011.

 

Household Costs, Not Manufacturer Costs

We’ve looked at the end-customer prices for solar installations. So we’ve included not only the solar panels but also all the other costs like the mounting rails, inverter, cables, installation costs and installer profit margin.
 
We’ve also focused on roof-mounted systems of up to 100kW installed power. As we mentioned in a recent blog, this size covers household installations. Commercial installations are much bigger – over 1,000kW installed power.
 

Focus on Germany

Germany is a good country to look at for cost information for two reasons. Firstly, the market is huge: Germany accounts for around half of all solar installed power globally. To put that in perspective, Germany installed around 7,000MW (mega-watts – or millions of Watts) of solar panel power in 2010 compared to the UK at 10MW.
 
The second reason is that the German Solar Industry Association (called BSW) is very transparent about prices and installations.
 

5 Year Solar Installation Price Trend

End-Customer prices, rooftop systems up to 100kW

 

The charts shows the remarkable drop in prices – particularly in the last 2 years. At €2.42 per kW a typical 4kW system would cost a household €9,680 to install – about £8,750 using currency data from xe.com.
 
Now it is important to note that the German market is much more developed than the UK market so you are unlikely to get prices as keen as this in the UK. But prices are coming down – and that’s great news for households.