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Since the pandemic began in 2021, module prices have continued to fall, reaching a two-year low globally in April 2023. In the first two months of 2023, the average module price in the United States was 0.36 dollars per Wdc, 11% less than the previous quarter.
Solar, wind and natural gas accounted for more than 91% of the capacity added to the U.S. power grid in 2021, according to the Energy Information Administrations Annual Electric Generator Construction Cost Report ( EIA, for its acronym in English).
Although the total cost of building solar systems approached $20 billion, the average costs of building solar systems decreased in the US in 2021 compared to 2020.
EIA data shows that solar construction costs fell 6% in 2021 compared to 2020, falling to $1,561 per kW. The decline was primarily driven by a 10% drop in the cost of building crystalline silicon tracking panels, which fell to $1,423 per kW, its lowest average cost since 2014.
The report notes that the average construction cost of fixed-tilt crystalline silicon panels increased 5% to $2,047 per kW. The average cost of cadmium telluride panels remained relatively stable, declining just 1% to $1,626 per kW in 2021. Fixed-tilt tracking systems automatically move to follow the sun as it moves across the sky . Although they are the most expensive, they produce more electricity by continuously following the sun.
It should be noted that this comes after a time when solar module prices had doubled mainly due to supply shortages during the Covid pandemic. In response to the shortage, many manufacturers increased production, while developers stockpiled supplies.
Since the pandemic began in 2021, module prices have continued to decline, reaching their lowest level in two years globally in April 2023. In the first two months of 2023, the average module price in the US .US was 0.36 dollars per Wdc, 11% less than in the same period of the previous year. The modules traded at a 57% premium to the global spot price of monofacial monocrystalline silicon modules.
From a regional standpoint, the largest growth in solar energy addition occurred in the southern United States, with Texas leading the way. In 2021, Texas added 100 new plants for a total of 10,155 MW, compared to 2,347 in Ohio.
Although Texas continues to lead the country in solar installations, the numbers are very different from two years ago. For example, the Solar Energy Industries Association (SEIA) forecasts growth of 36 GW over the next five years, from approximately 16 GW active to date. Much of the current investment in solar energy, close to $20 billion, goes into large solar installations, often over 100 MW in capacity. |
