This question is part of the Super Big Solar Panel FAQ from Solar Mango, where expert answers to over 100 important questions on solar panels are provided.


The general trend in prices of solar panels are not difficult to predict – for the most of the last 2 years, it has been declining gradually, before which the decline had been a lot faster. Before that (prior to 2014), it was decreasing at a much faster pace.

One can expect the gradual reduction in prices to continue into 2017 as well, but there could be some surprises in store while trying to estimate the rate of decrease.

The challenge is mainly owing to, not surprisingly, China


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You see, most solar panels are made in China. Owing to the massive capacities the country has built up, there are times when there is more capacity available than the demand as some times the Chinese demand for solar panels, which is one of the highest in the world, is not predictable.

Like it has happened in the second half of 2016, when owing to China over-achieving its target for the first half of 2016, growth in solar panel consumption could slow down significantly in the country during the second half, and this could result in a serious oversupply of solar panels and a consequent reduction in prices.

All said, we can expect international prices of solar modules to be hovering in the broad range of 43-50 US cents/W for most of 2017, with every likelihood that the prices could be much closer to the lower part of the range.

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