According to a new report from GTM Research – Greentech Media’s market analysis and advisory arm — solar prices are continuing to drop, and there aren’t any indications that the trend is slowing down. In fact, GTM has predicted that by 2022, average global solar project costs will be down by around 27%, which is equivalent to an annual decline of approximately 4.4%.
GTM also says the decline in cost is not exclusive to the U.S. It’s happening all around the world and in some locations, the price decrease is even higher than what’s being experienced in the U.S.
The figures were derived from a new PV system pricing forecast developed by GTM Research solar analyst Ben Gallagher. It’s not just the numbers that are significant; it’s the reason behind those numbers as well. Gallagher believes the drop in cost is being driven by the reduction of all related costs, including that of tools, materials and manpower.
At present, solar cost is at its lowest in India — 65 cents per watt. So far, that’s the lowest record in the entire world. China offers the second lowest cost — $0.80 per watt.
On the other end, solar energy is most expensive in Japan — $2.07 per watt. Apparently, it’s because there’s more ‘engineering scrutiny’ involved owing to the incidence of earthquakes, heavy winds and mountainside erosions.
In the U.S., it’s $1.10 per watt and in the U.K., it’s $1 per watt.