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Solar Trade Association Show Feed In Tariff Subsidies Not Needed

Price of solar panels to drop to $1 by 2013, report forecasts | Environment | The Guardian

The average one-off installation cost of solar photovoltaic (PV) panels has already dropped from more than $2 (£1.23) per unit of generating capacity in 2009 to about $1.50 in 2011. Based on broker reports and industry analysis, the report forecasts that those rates of decline will continue, with prices falling close to the $1 mark in 2013.

At present, solar PV is economically viable in the UK for homeowners, businesses and investors only because of government subsidies given out via feed-in tariffs (Fits). But the new analysis suggests that falling PV panel prices and rising fossil fuel prices could together make large-scale solar installations cost-competitive without government support within a decade – sooner than is usually assumed.

The report was commissioned by the Solar Trade Association (STA) from Ernst & Young's energy and environmental infrastructure advisory unit in response to the recent shake-up of Fits, which saw government support for large solar systems significantly reduced. This was a result of the government's decision to cap the total that could be spent via Fits and weight the limited budget in favour of domestic and other small-scale installations.

The chairman of the STA, Howard Johns, said the new analysis backed up the industry line that government support for all types of solar systems in the next few years made good economic sense as it would build capacity and enable unsubsidised solar to be as widely deployed as possible as prices come down.

No it bloody doesn't - it means that we don't need any subsidies at all. Our subsidy won't bring the price drop a day sooner. Wait for them to be economic and then fit them. Simples.

Use the money saved to do something more productive to save the planet in the meantime.


Solar energy has been widely used these days. With that a drop of $1 from its price from the usual price has been catching for most. With that it has been lessen and has been helpful also in saving.

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