Australia is now experiencing fast-paced electrification to reach net zero goals by 2050. States and territories in the country are adopting solar energy to keep up with the changing times whilst saving the environment.
2023 is looking to be the best time to switch to solar.
Why? We explore this question, and provide answers, in this article.
Wholesale prices of solar panels are dipping
In the past few years, a significant spike on solar panel prices has made homeowners, and business owners rethink adopting renewable energy. Things are now taking a turn as it is predicted that prices of solar panels will start a long, downward trend.
The first two months of 2023 have already seen significantly reduced solar panel prices. Experts predict significant price drops of 10 per cent every year for the next ten years.
One of the reasons solar panel prices shot up in recent years was due to the issues China faced in polysilicon manufacturing. The price spike was affected by several factors, such as the weather conditions, industrial accidents, and the global pandemic. All these factors caused problems with the supply chain that drove prices higher.
Today, there are now big investments in polysilicon manufacturing, and some plants are coming back online, which relieves issues in the supply chain of polysilicon.
According to Tim Buckley, the director of the Climate Energy Finance think tank, “I’m forecasting 10 per cent annual module price reductions over the next decade.”
His confidence is driven by the increase in the production capacity of PVs in China, which will likely triple by the end of this year.
Thus, Ronald Brakels, an analyst, predicted that the price of solar panels made in China will be cut down in half. “These big polysilicon factories are supposedly profitable at a price under $US10 per kg. The price of polysilicon can fall that low, and that will roughly halve the cost of typical solar panel at the factory gate.”
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Why you shouldn’t wait to install solar panels
You shouldn’t wait any longer to install solar to your home. Why?
Waiting around means you won’t be able to experience significant energy savings, and electricity prices will continue to rise. 2022 saw many factors leading to a spike in natural gas prices that affected energy prices. Some locations have seen up to 50 per cent increase in the price of energy.
With the price of solar PV systems dipping, now is the time to switch. Even if predictions point to even lower prices in the coming years, there’s always the possibility of things changing. Taking advantage of low prices now is a smart move.
There are also favourable government incentives available, but phasing out of federal and state programs and incentives might mean that waiting will see the cost of your system substantially increase.
Energy Matters has over 17 years of experience in the solar industry and has helped over 40,000 Australian households in their journey to energy independence.
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