The cost of solar power generation will drop 25%
The cost of solar power generation is expected to drop by 15% - 25% in the next decade
According to the latest report by Wood Mackenzie, an international research institute, the cost of solar energy has fallen by 90% in the past two decades, and it may fall by another 15% to 25% in the next decade. By 2030, solar energy will be the cheapest source of new energy for all States in the United States, as well as Canada, China and 14 other countries.If the covid-19 does not end early,most of the solar products,such as module,invertor,solar mounting system will be prodced by Chinese manufacturer.
Ravi Manghani, director of research at wood Mackenzie, said: "solar energy has a unique role in promoting low carbon emissions as the world tries to recover from the recession caused by the covid-19 pandemic while meeting the climate and environmental goals of the Paris Agreement."
Solar energy is the cheapest new energy power generation method in 16 states of the United States, Spain, Italy and India. Even with the covid-19 pandemic, global installations will still exceed 115 gigawatts (GW) in 2020, compared with 1.5 GW in 2006.
Although the growth of solar power to this scale is partly driven by government subsidies and environmental goals, solar power is now attractive in terms of price and cost alone. "Solar energy is becoming more and more competitive, not only as a means of decarbonization for enterprise buyers, but also as a way to reduce energy costs for enterprises."
Over the next decade, Wood Mackenzie expects the market to further reduce costs through the development of double-sided panels, larger solar modules and solar tracking technology.
Wood Mackenzie stressed that its prospects only consider the technological improvements that have been fully implemented in commercial development channels. These forecasts do not assume any breakthrough in the next generation of solar technology or other innovations, which may bring further upward space to the future.
Operating costs are also expected to fall in the next decade. Technologies that have been widely used in the wind power industry, such as the use of UAVs and thermal imaging for inspection, and the development of artificial intelligence, will make the operation more efficient.
But Wood Mackenzie cautions that the industry is not risk-free for some players. As costs fall and solar installed capacity increases, wholesale prices may also fall, reducing profitability. Still, falling prices will allow solar to replace coal and other more expensive technologies and increase its market share.
