Solar Prices Drop With Global Economic Changes

The solar revolution is an exciting prospect.  The notion that our purchasing decisions could lead to a cleaner planet, lower energy costs, and us becoming coolest people on the block with the latest technology, is, to say the least, exciting.  The future is bright.  The sun helps with this bright outlook.  Being the closest star to earth, we have the unique ability to harness its immense energy into our technology.  From solar powered flashlights to solar-powered homes, renewable energy is everywhere. 

According to a story in Bloomberg New Energy Finance we have seen solar investment drop by 19 percent worldwide in the second quarter following a trade war between China and the United States.  This slump includes a 30 percent tariff on Chinese solar panels and parts imported to the United States.  This current industry-specific tariff took effect in February. If we peer a bit deeper into the available information, the data exposes new investments in renewable energy aren't as dreadful as a swift glimpse of the numbers may have demonstrated.

This drop has been measured in U.S. dollars, and the source of this disruption hails from an economic glut as a result of the decline in the price of solar panels in China.  Specifically, this pricing incident stemmed after China canceled government subsidies for solar installations in anticipation of the tariffs, eventually immersing the global market with an over-abundance of solar panels.

A notable fact was that investment in the massive Chinese solar market was down 15 percent from last year. This loss of investment lands informatively with other metrics.  When measured in gigawatts installed, solar installations looked relatively flat. Bloomberg NEF forecasts installations of between 95 and 107 gigawatts in 2018, compared with 98 gigawatts in 2017. To gain a better appreciation for these solar cost issues, we need to seek the consul of informed solar specialists.  Pietro Radoia, a solar analyst at BNEF, said, “It will also mean overcapacity in solar manufacturing globally, and yet steeper price falls."

Can Wind Power Offset Our Solar Price Issues?

In the exploration of other viable sources for efficient and cheap renewable energy, many countries around the world are now looking toward different types of development.  The U.S. launched an exciting expansion of wind power, investing 121 percent stronger than last year.

While development of wind farms currently saunter behind investments, even more so than solar, the power generated by wind power was up 11.5 percent from last year, from 52 to 58 gigawatts.  With these significant gains, we may see future alternative renewable energy markets become energized with investment to ease potential future market disruptions. 
In 2017, wind and solar accounted for about 8 percent of power production in the U.S., according to the U.S. Energy Information Agency. Including other sources such as hydropower, renewables made up just over 17 percent of U.S. electricity production.

This Is An Exciting Time For The Solar Market

The solar revolution is here, and it is exciting.  Global markets aside, we investment and development, especially in solar will allow every person to take part in this inspiring time. The future is bright.   

If you want to move into the future and join the solar revolution, or if you want to find out what solar panels are right for you, go to HahaSmart.com and try our price checker tool. You can see how much a system will cost, and how much you can save over the next 20 years. 

For more information relating to going solar, don't forget to visit our solar blog section for more handy guides and articles.