One of the most important aspects to consider when examining the cost-effectiveness of solar energy today is to understand how to achieve grid parity with conventional energy sources such as electricity from coal or natural gas. The cost per watt of solar energy should be reduced to reduce the total cost of production and supply. Some measures to reduce costs , increase the efficiency of solar panels , reducing hardware costs by using cheaper materials, and are abundant. It is also important to increase the production scale of production and standardization of documents. Production costs can be reduced through intelligent design and manufacturing automation . To improve the solar grid parity Will also be important to increase the introduction of technology in improving access to finance for the manufacturer and the development of creative business models. In addition, to help the introduction of solar technology current and future strategies of fossil fuels and renewable portfolio standards in the application of the rate.
During the last decade , the solar industry with 30% and the annual growth rate of 40% ( CAGR) has grown . Even more amazing is the production of solar energy is increased by 80 % in 2008 . However , what should fall to 33% CAGR in 2009. In addition to the slowdown in production cuts solar module prices . The cost of the modules have been reduced by about 80% over the last 25 years. It is expected that Chinese producers are for the cost of e – silicon to $ 1.30 per watt in new lines and many businesses modules to sell below cost in the coming years due to oversupply .
In 2008 and provides 33% of solar modules from China, 31% from Europe and 43 % from the rest of the world. In 2008 , the demand for solar modules of the highest in Spain, 41%. In 2008, the demand in the U.S. has reached 8 % of the total. But it is expected in 2010 that Spain only 5 % of the demand and the United States is 20% of the demand increase for solar modules . 9 GW of existing capacity, only 6 GW were sold in 2008. Was increased from 6.5 GW in 2009. This excess capacity will continue to cut prices , squeezed small farmers who no longer withstand the pressure on thin margins.
In general, there is an increase in the scale of the usefulness of the system large. This is partly due to RPS , and scales appeal. But even with the adoption of solar markets of large systems are expected long-term cost to reduce even more to adopt utilities solar energy regardless of political mandates .