Solar PV Panels (generation and price)
The demand for solar energy began to gain significant traction in the late 20th century. However, the concept of harnessing solar power has been explored for much longer. The oil crisis in 1973 is considered one of the main factor towards alternative energy sources
The oil crisis of 1973 and the growing environmental movement in the 1970s led to increased interest in alternative energy sources, including solar power. The United States and several other countries began investing in research and development of solar technologies.
In the 1990s and 2000s Improvements in solar cell efficiency and declining costs helped make solar energy more economically viable.
Since the 2010s, the demand for solar energy has continued to increase as solar installations have become more affordable, efficient, and accessible. Public and private investments, along with supportive government policies, have contributed to the growth of the solar industry globally.
The below Tableau can shows the generation of power from Solar panels went from below 1 TWH per year before the year 2001, and went up to 1289 TWH in year 2022 .
In the same time, the cost of 115$/Watt generated in 1975 up to 0.3$/Watt generated in 2021.
As the cost of solar power generation decreased over time, it became more economically viable and attractive to individuals, businesses, and governments. The decreasing costs can be attributed to several factors:
1. Technological advancements: Advances in solar cell technology, manufacturing processes, and materials have contributed to increased efficiency and reduced production costs. Improvements in manufacturing techniques and economies of scale have made solar panels more affordable to produce and install.
2. Research and development: Investments in research and development have led to innovations and breakthroughs in solar energy technologies. This has resulted in higher conversion efficiencies, improved durability, and decreased material costs.
3. Market competition: The growing demand for solar energy and the increasing number of companies entering the market have intensified competition. This competition has driven down prices as companies strive to offer more cost-effective solutions to attract customers.
4. Government policies and incentives: Supportive government policies, such as feed-in tariffs, tax credits, and subsidies, have encouraged the adoption of solar energy. These incentives help offset the upfront costs of installing solar panels, making them more financially viable for consumers and businesses.
The decrease in the cost of solar power had a profound impact on the solar industry. It has led to a massive spread of solar panels globally, with installations becoming more widespread across residential, commercial, and utility-scale applications. As a result, solar energy has become a significant player in the global energy mix, contributing to the transition towards renewable energy sources and reducing dependence on fossil fuels.
