Consumers are enjoying low solar panel prices thanks to dramatic increases in manufacturing capacity. However, the solar industry now appears to be oversupplied and many solar manufacturing companies are feeling the pain.
According to a report by Credit Suisse, manufacturers are looking to add roughly 10 GW of solar cell production capacity while demand is estimated to rise by only 6 GW. Economies of scale and an oversupplied solar PV market has resulted in the cost (not installed cost) of solar cells to go from $0.50/Watt in 2012 to $0.30/Watt in 2016.
Image Credit: Credit Suisse
The low cost of solar panels has helped fuel demand from both residential consumers and utility companies. It is estimated that worldwide solar panel demand will grow by 14% per year until 2020.
See the full report here: Credit Suisse Report