It’s everywhere. In recent years, headlines like “Solar’s Breathtaking Price Plunge” and “Solar is Insanely Cheap” abound, and solar industry pros and owners have watched the tumble in prices.
But it’s been happening for more than a few years. In fact, the Solar Energy Industries Association (SEIA) reports a dramatic 68.4% drop in the average residential solar system price over the past 20 years, chalking up the substantial cost reductions to two things: rapid technological advancements and increased production capacity.
Solar customers were enjoying the production boom because more production of solar components with better technology meant lower prices for improved solar tech that had previously been out of their reach.
And just like we’ve seen with smart TVs, the surge of new equipment suppliers that entered the solar market included some familiar, reliable manufacturers. Not only was the resulting production of durable solar components unprecedented, it became so large that the U.S. Dept of Energy started to take note of what called it “module overcapacity.”
North Texas Solar kept a close eye on these industry shifts, adapting to the evolving market as the availability of high-quality equipment drove system prices lower than ever.
In another bonus to solar purchasers, while prices were falling, efficiency was making gains.
Efficiency: the percentage of sunlight that falls on a solar panel or cell that was converted into electricity
From 2010 to 2024, while per watt prices for installed solar systems were decreasing from almost $9.00 per watt down to about $3.00 per watt (it’s even lower now), efficiency was rising from about 15% to 22%. Again, it was solar customers who were reaping the benefits of the trends.
Add to that improvements in manufacturing, as well as an approximate 75% drop in battery prices in the last 15 years–even while battery chemistry improved–and you’ve got the perfect solar storm that made solar technology more popular than ever for residential, commercial and industrial development. So much so that the International Energy Agency projected that over the coming two years, virtually all new electric generation capacity will be renewables, mostly solar and batteries.
However, while prices have drooped, the rate of decline has slowed down in recent years, with some solar cost measurements showing a stabilizing or even a rising trend. For example, in the second half of last year, the U.S. Dept of Energy said that module prices were slightly up, and in the same quarter, global prices for polysilicon, used to make many panels, rose 3%.
In addition, global supply chain pressure and inflation, which decreased after the 2020 pandemic but are now rising, are adding risk and uncertainty for manufacturers, potentially leading to reduced production and increased prices. And of course the cost of labor has gone up since the pandemic as well, forcing companies to raise prices to cover costs.
Industry analysts mostly agree that solar prices will remain stable in 2025, but some say they see indications of a coming slight rise, as a few companies have decided to retreat from the over-saturated solar components market at the same time that domestic policies of protectionism have left some foreign manufacturers at a disadvantage.
So while the overall projection of solar component prices has too many conflicting indicators to reliably predict price trends, it’s clear that there is growing evidence of upward pressure on pricing. What is much more certain is that domestic energy costs will almost certainly continue to rise while problems with the instability of an aging grid are yet to be fixed.
Your solar system from North Texas Solar will provide energy for your property for well over 25 years and an informed view of solar has to take into account the long game. Your panels will bring down your energy costs for decades and your batteries will mean you can spend those years knowing that your lights, refrigerators, security systems and internet are all backed up.
For North Texas Solar customers, the big picture is that a correctly sized, well-built solar investment will pay for itself in a reasonable amount of time. Timing a purchase to coincide with the lowest possible prices before an increase is nearly impossible, but avoiding rising electricity prices from the comfort of a powered home that’s free from the grid and from outages is 100% possible.
Get a Free Quote Today
But it’s been happening for more than a few years. In fact, the Solar Energy Industries Association (SEIA) reports a dramatic 68.4% drop in the average residential solar system price over the past 20 years, chalking up the substantial cost reductions to two things: rapid technological advancements and increased production capacity.
Solar customers were enjoying the production boom because more production of solar components with better technology meant lower prices for improved solar tech that had previously been out of their reach.
And just like we’ve seen with smart TVs, the surge of new equipment suppliers that entered the solar market included some familiar, reliable manufacturers. Not only was the resulting production of durable solar components unprecedented, it became so large that the U.S. Dept of Energy started to take note of what called it “module overcapacity.”
North Texas Solar kept a close eye on these industry shifts, adapting to the evolving market as the availability of high-quality equipment drove system prices lower than ever.
In another bonus to solar purchasers, while prices were falling, efficiency was making gains.
Efficiency: the percentage of sunlight that falls on a solar panel or cell that was converted into electricity
From 2010 to 2024, while per watt prices for installed solar systems were decreasing from almost $9.00 per watt down to about $3.00 per watt (it’s even lower now), efficiency was rising from about 15% to 22%. Again, it was solar customers who were reaping the benefits of the trends.
Add to that improvements in manufacturing, as well as an approximate 75% drop in battery prices in the last 15 years–even while battery chemistry improved–and you’ve got the perfect solar storm that made solar technology more popular than ever for residential, commercial and industrial development. So much so that the International Energy Agency projected that over the coming two years, virtually all new electric generation capacity will be renewables, mostly solar and batteries.
However, while prices have drooped, the rate of decline has slowed down in recent years, with some solar cost measurements showing a stabilizing or even a rising trend. For example, in the second half of last year, the U.S. Dept of Energy said that module prices were slightly up, and in the same quarter, global prices for polysilicon, used to make many panels, rose 3%.
In addition, global supply chain pressure and inflation, which decreased after the 2020 pandemic but are now rising, are adding risk and uncertainty for manufacturers, potentially leading to reduced production and increased prices. And of course the cost of labor has gone up since the pandemic as well, forcing companies to raise prices to cover costs.
Industry analysts mostly agree that solar prices will remain stable in 2025, but some say they see indications of a coming slight rise, as a few companies have decided to retreat from the over-saturated solar components market at the same time that domestic policies of protectionism have left some foreign manufacturers at a disadvantage.
So while the overall projection of solar component prices has too many conflicting indicators to reliably predict price trends, it’s clear that there is growing evidence of upward pressure on pricing. What is much more certain is that domestic energy costs will almost certainly continue to rise while problems with the instability of an aging grid are yet to be fixed.
Your solar system from North Texas Solar will provide energy for your property for well over 25 years and an informed view of solar has to take into account the long game. Your panels will bring down your energy costs for decades and your batteries will mean you can spend those years knowing that your lights, refrigerators, security systems and internet are all backed up.
For North Texas Solar customers, the big picture is that a correctly sized, well-built solar investment will pay for itself in a reasonable amount of time. Timing a purchase to coincide with the lowest possible prices before an increase is nearly impossible, but avoiding rising electricity prices from the comfort of a powered home that’s free from the grid and from outages is 100% possible.
Get a Free Quote Today
