Solar Price and Shortage Updates 2022
It seems like every year, solar energy becomes more and more affordable to people around the world, but that doesn’t mean there isn’t still room for improvement. I’m not talking about getting solar panels to power your entire house or even just your home. I mean improving the cost of harnessing solar energy so it can be used to power everything from portable electronics to electric vehicles. Here are some of the solar price and shortage updates in 2022 that we can expect as research continues how to get more bang for your buck out of harnessing the sun’s rays.
The current state of the solar industry
The solar industry is booming, but it's also not without its challenges. The price of solar panels has been steadily decreasing over the years, but the cost to install them still varies depending on where you live. Add in regulations that have caused some tariffs and restrictions, as well as a worldwide shortage of silicon (used in making solar panels), and there are a lot of variables that go into getting your solar power system installed. Thankfully, the US Federal Trade Commission recently announced that they were investigating whether or not these market conditions were leading to anticompetitive behavior among suppliers. In addition, China's trade surplus with other countries has increased as prices plummet for silicon from $25/kg to $10/kg. So while demand is still higher than supply, prices should be going back up soon which should help balance out the market even more.
What has caused the increase in solar prices?
The increase in solar prices is caused by the decrease in demand. Now that more countries are generating their energy, they have less of a need to buy it from other countries. In addition, as the price of solar panels decreases, more people are switching to solar power instead of purchasing it. This increased supply has decreased demand, which has led to higher prices. Another factor that contributes to the increase in solar prices is the tariffs imposed by President Trump. These tariffs make American-made panels 10% more expensive than imports, leading foreign panel manufacturers to raise their prices accordingly. One such company, Meraki Solar in Tallahassee FL, raised their average residential system cost by about $3K because of the tariffs. However, as mentioned above, solar panels are decreasing in price so many companies are selling at below market value. There may be potential for a shortage soon though because China is considering lowering its export duties on photovoltaic products next year due to possible issues with the availability of raw materials needed for manufacturing.
The future of solar energy
Solar energy is one of the most sustainable forms of energy available. However, there are a few problems that need to be solved before they can become mainstream. The cost of solar panels has been decreasing over the years, but they remain pricey. And while they produce clean energy, they only work when the sun is shining. That's why researchers are looking into ways to store solar power in batteries so that it can be used at night or during cloudy days. There are also different types of solar cells being developed, such as perovskite cells. These cells absorb more light than traditional silicon cells and can be manufactured at much lower costs. It will take time before these new advancements make an impact on the price of solar panels and their efficiency, but as long as research continues we should see some changes within 10-15 years.
How will the solar shortage affect solar consumers?
Many people are wondering what the solar shortage will mean for them.
People who own their home or have invested in a solar system with a power purchase agreement (PPA) signed with a company that provides solar energy to their homes should be unaffected.
However, those who buy all of their electricity from a third-party supplier may see an increase in prices due to the shortage. For example, if someone buys their electricity from Duke Energy, they could expect to pay over $0.10 more per kilowatt hour of electricity during peak hours than normal.
However, there are other options available for customers such as utilizing Duke's demand response program which helps control usage during times when demand is high.
When will the solar shortage end?
It is hard to say when the solar shortage will end. Experts have predicted that it could be a decade or more before there is enough solar power in place to meet our needs.
It will all depend on how quickly we can work to increase our renewable energy sources.
If we are successful at doing this, then we will see a significant reduction in demand for fossil fuels which will make it easier to produce more solar panels. In turn, solar prices should start going down. The sooner we can get those solar companies in Tallahassee up and running again, the better!