A new report from market research firm NPD Solarbuzz predicts that manufacturing costs for integrated polysilicon and photovoltaic wafers, some of the principle components of a solar module, will drop 6 percent in 2014. While this represents a slower decline than the five-year average of 16 percent per year, it still spells good news for customers who are considering adopting Bay Area solar energy for their electricity needs.
The report predicts that the price per watt of silicon wafers will fall to $0.20. The drop in manufacturing costs has to do with a number of supply chain changes, including the fact that wafer makers are moving to areas with lower electricity rates and the adoption of more streamlined production practices.
“Wafer costs are only a third of what they were five years ago, and even though the rapid pace of cost reduction is starting to decline, the severe oversupply and extremely low selling prices are forcing polysilicon and wafer makers to continue to find ways to lower costs to previously assumed impossible levels,” Charles Annis, vice president at NPD Solarbuzz, said in a news release.
NPD Solarbuzz also expects end-user demand for solar power installations to reach the 45-50 gigawatt level in 2014, which would mean massive growth for the global photovoltaic generating capacity.
The fact that more homes and businesses are taking advantage of the benefits of solar is no surprise, given how it can improve the finances of families and organizations looking to save money on energy costs. For more information on whether solar power is right for you, contact West Coast Solar today.