If solar panels weren’t as expensive as they are in South Africa, more folks would have switched to renewable power and Eskom would probably have to treat its users more like customers than beggars.
Sunny South Africa is the perfect place for solar power. The catch? Panels aren’t cheap. In fact, the cost remains the greatest barrier to widespread adoption. That could be about to change.
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According to Bloomberg, global solar panel prices are due to come down, the result of prices for the material used to make panels falling. Solar prices remained significantly high in 2021 and 2022 due to the high cost of polysilicon, which is a key material used in most panels.
At the end of last year, several new factories that produce polysilicon came online, contributing to a price drop for material used in panels. According to BloombergNEF, material prices have dropped by more than a third since November last year. Increase output across the industry should lead to further decreases in cost. This, in turn, should lead to at-home renewable power becoming more affordable over the course of the year.
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Chinese metal information provider, Shanghai Metals Market, says three leading module manufacturers in the country are increasing their January output forecast. Shanghai Metals Market did not identify its sources for the forecast. Near-term demand was noted as another factor driving the output increase.
In a WeChat message noted by Bloomberg, JA Solar Technologies Co. says it expects a more positive quarter than the previous one. JA Solar technologies Co’s competitors, Longi Green Energy Technologies and Jinko Co., were not available for comment.
Source: Bloomberg