Cost of Solar Power 60% Lower than Early 2011 in US

Solar panel costs are partly down due to technological and manufacturing advancements. However, the main driver of the reduction in installed solar panel costs is most likely just economies of scale (as more solar panels are produced, costs come down) and market maturation (as the market grows, competition grows — driving down the price of solar — and installers achieve economies of scale and cut their prices).

Naturally, as solar panel costs continue to drop, solar power grows even faster, which further brings down the cost of solar. (Thankfully, this is quite different from the situation with non-renewable fossil fuels, where greater use of fuel shortens supply and drives costs up over time.)

Cost of Solar Power 60% Lower than Early 2011 in US