The week of 6 November 2023 marked the fourth consecutive week of solar module price reductions from Chinese manufacturers. This follows a year of decreasing panel prices as shown in the chart below.
Module manufacturers have responded to the oversupplied market by scaling back production. Overall operating rates of the segment having dropped to 50-60%, significantly lower than the previous 70-80%. Many predict that small factories with inefficient production capacities will gradually exit the market.
What does this mean if you want to install solar?
If you are looking to install solar, now is the time to do it. A solar system purchased now is considerably cheaper than if you bought it a year ago. A 99kW system, for instance could be as much as $12,000 less post STCs, on the back of the panel price decrease.
The panel price decrease has also been reflected in payback periods. While the last two years saw average payback periods of five years, we now consistently see payback periods of only three years. That means you would have completely paid off your system through the energy savings made within only three years. This is based on 2023 power prices, so if they continue to climb as many have predicted, the payback period will be even less.
Contact Shine On on 1300 013 648 to discuss whether a commercial solar system is appropriate for your site.