- How has the price of solar changed over time?
- What factors are driving solar price changes?
- Which regions represent the largest markets for solar energy capacity additions in the coming decade?
- What are the key drivers for the solar PV market?
- What are the key barriers to growth in the solar market?
Analyst Insight: Solar Price Trends
Global Wind and Solar Energy Insights
Despite major supply chain disruption and variable economic conditions brought on by the COVID-19 pandemic, 2021 was another strong year for solar PV deployment. The global market for solar PV continues to grow and is estimated to add 165 GW of capacity in 2021. Rapidly decreasing costs since 2010 have made solar PV cost competitive with other generation technologies. In the long run, these price declines, coupled with increasing module efficiency and a supportive regulatory environment, are expected to drive the global market for solar PV.
Much of the solar PV cost decline since 2010 has been driven by decreasing hardware costs, with module prices declining more than 50%. Supply chain disruptions in 2020 and 2021 have caused a slight uptick in the price of solar. Until freight costs return to pre-pandemic levels and the cost of raw materials declines, solar costs will remain elevated.
This Guidehouse Insights report provides an analysis of solar price trends. This report provides insights, drivers and barriers, and key market inflection points for regions where the solar energy market is expected to have the greatest influence in the overall energy mix.
- Electricity generation utilities
- Independent power producers
- Solar power plant operations and maintenance companies
- Materials manufacturers for solar energy components
- Government agencies, policymakers, and researchers
- Investor community
Scope and Executive Summary
Historical PV System Cost Trends
2021 Solar Price Trends
Soft Costs Increasing Relative to Total Costs
Breaking Down Soft Costs
Market Inflection Trends
Market Drivers, Barriers, and Forecast
Key Recommendations & Acronyms and Abbreviations
Additional Resources & Contact
- PV System Cost Benchmark by Dollar per Watt DC, US: 2010-2020
- Solar PV Module Price by Month, Europe: 2020-2021
- Soft Costs as a Proportion of Total Cost by Segment, US: 2010-2020
- Solar PV Costs by Sector, US: 2020
- Solar PV Deployment Industry Growth Potential, World Markets: 2021-2030
- Annual Solar Capacity Additions by Segment, World Markets: 2021-2030
- Annual Solar Capacity Additions by Region, World Markets: 2021-2030
- Market Drivers and Barriers