The U.S. government, too, has its own long-standing beef with the way China exports solar and early this month a U.S. federal trade panel validated an earlier finding that China is responsible for harming the U.S. solar manufacturing industry - confirming the United States' right to impose steep tariffs on Chinese solar imports.
But what does all this mean for consumers? In recent years, the worldwide over-supply of solar parts was actually "great" news for homeowners who benefited from a big cost drop in solar systems. This massive price drop subsequently drove a "109 percent increase" in solar adoption last year alone.
Now that a solar trade battle is brewing does it mean the buyer's market for solar destined to come to an end? The answer is complex. The cost of solar here will almost certainly rise in the future as tariffs start to have an impact, but it's important to note that factors "other" than oversupply have contributed to the price drop, too, including larger production facilities and greater economies of scale overall.
In addition, a recent study by Lawrence Berkeley National Labs found that "non-module" costs had dropped significantly in recent years, such as installation labor, marketing, overhead, inverters, and the balance of systems (support racks, wiring, switches, and inverter).
So, while it would be strategically very smart to go solar now while panel prices are at an all-time low, it's unlikely that the future cost of solar will be nearly as much as it was just a few years short ago - even with tariffs. The industry as a whole has just changed too much for that.
In fact, solar seems poised for exponential growth despite trade issues. In 2012, solar achieved its second-best quarter in history, helped by rising utility prices and new, more powerful technologies. Market research indicates the solar market will continue to grow, reaching 104 billion by 2017 - with the United States driving much of that growth. The European Photovoltaic Industry Association predicts global photovoltaic demand will increase from 30 gigawatts in 2011 to as high as 77 gigawatts in 2016.
So again, if you can go solar now, it's a "great" time to do so and unlikely to ever be this great anytime soon. If you've been considering solar for your home, by all means, take full advantage of the supply glut, low margins, and fierce competition between solar companies. The supply glut is predicted to last for twelve to 18 more months, by the way, so shop around for a high quality system that will pay for itself quickly - make sure to check out an ECHO solar system, which will cover not only your electricity needs, but hot water, too.
On the other hand, if you can't go solar now, there will still be "plenty" of opportunities to do so in future. Large scale adoption, more state-level programs, wider availability of solar leases, and economies of scale should keep solar well within reach for millions of homeowners for a long time to come.
Related Posts:
* Five Things Every Homeowner Should Know About Solar in 2013
* Grid Power Versus Solar Power Pricing Trends
* Should I Get a Solar Quote for My Home?
* Leases Are Now the Most Popular Way to Go Solar
Credit: cleanpowerlife.blogspot.com
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