Solar PV Prices 39% Higher This Time Last Year

Solar PV prices were 39% higher this time last year, according to new research by leading online resource Solar Guide.

While the solar industry has recently been left reeling after the Government announced its proposals to slash solar subsidies by more than half, Solar Guide is optimistic that the once booming market will be able to weather the storm surrounding cuts to the feed-in tariff (Fit) scheme. Thanks, not least, because of a reduction in the price of the technology.

Solar Guide’s research indicates that solar PV prices have reduced over the last 12 months, which is helping to make solar far more affordable and should go a long way when it comes to maintaining faith in the renewable technology.

Figures show that the average price per kWp of a solar PV system has dropped by 28%. According to figures compiled by Solar Guide, in December 2010 the average price consumers could expect to pay for a solar PV installation was £4,445.95 per kWp. In October 2011, that price dropped by 27.87%, to £3,206.96.*

With the cost of fossil fuels continuing to rise rapidly, investing in a solar PV system makes sense, not least because:

  • The cost of installing the technology has reduced by 28%
  • The same sized system installed this time last year, compared to now, would be 39% more expensive.
  • You’ll be able to enjoy cheap or free electricity.
  • Solar PV is good for the environment.
  • You can make money by generating your own electricity through the feed-in tariff.

“Solar subsidies from the feed-in tariff have made investing in solar panels economically viable for so many people,” said David Holmes, founder of Solar Guide.

“While the Government’s proposal to slash solar subsidies by more than 50% has hit the industry hard, the fact that we’ve seen solar PV prices dropping by as much as 28% should provide the industry with a much needed boost.

“Our figures really do speak for themselves. This time last year, installing the same sized system would cost you 39% more than it would if you were installing it now.

“So while fossil fuel costs are rising solar PV prices are falling. Which means solar is fast becoming more and more affordable. And that’s good news, not just for energy consumers but for the economy and the planet, too. So it’s a win-win situation all round.”

*Figures based on 256,776 online quotations from December 2010 to November 2011. Data sampled at 28 November 2011.

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