One of the great problems or impediments that some renewable energies have is the high initial investment cost. However, according to a new report from GTM Research, the prices of solar energy installations will continue to decline by up to 27% by 2022. Iran on average dropping prices by 4,4% on average to 27%.
This is great news for all those people who opt for renewable energy for power generation. Will this be the new step to evolve in the energy transition towards the predominance of renewables?
Solar energy prices drop
The report makes a forecast on the prices of solar photovoltaic systems. In it, a continuous trend can be observed that contributes to the drop in the prices of solar projects. These prices will not only be lowered in price due to the decrease in the price of the modules, but also by cheaper investors, followers, and even labor costs.
All regions that can opt for renewable energies will benefit from this price drop. Recent record low prices have come from India, where the country's auction system has been in steady production and has resulted in highly competitive bids. This has caused prices to be lower and lower.
The report highlights that prices for large-scale photovoltaic systems in India have dropped to 65 cents per watt, which was unthinkable just a few years ago. Of course, one of the reasons for such low costs in India is low labor costs, which translates into low soft costs.
Renewable energies are gaining more and more space in international markets and will soon lead countries to the energy transition.