TimmyH
Solar prices brighten up
July 3rd 2008 00:42
In 2003, the market price for a kilogram of silicon, the primary material used for making solar cells stood at $24. But over the past four years the price has soared, while production has remained stagnant. By 2007 the cost was up to over $400 per kilogram.
The raw materials required for solar are very specific. Much of the price hike has been driven by the cost of quartz. As the popularity of solar power has increased, with government grants in most countries now available for businesses and homes who install solar panels, the production of quartz has remained at just 112 percent of 2003 levels. Silicon, which is derived from quartz, has accounted to up to one third of the price increase.
Silicon prices had been on the slide up until 2003, seeing more than two decades of steady declines. But have risen by almost 2000 percent in the past 4 years. Most observers now agree that solar prices will drop over the next decade at quartz and silicon output increases to meet demand for solar products. Also, as mining companies realise the productivity of quartz and silicon production, investment by them in the solar industry seems almost certain.
The raw materials required for solar are very specific. Much of the price hike has been driven by the cost of quartz. As the popularity of solar power has increased, with government grants in most countries now available for businesses and homes who install solar panels, the production of quartz has remained at just 112 percent of 2003 levels. Silicon, which is derived from quartz, has accounted to up to one third of the price increase.
Silicon prices had been on the slide up until 2003, seeing more than two decades of steady declines. But have risen by almost 2000 percent in the past 4 years. Most observers now agree that solar prices will drop over the next decade at quartz and silicon output increases to meet demand for solar products. Also, as mining companies realise the productivity of quartz and silicon production, investment by them in the solar industry seems almost certain.
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