Have The Prices Of Solar Panels Increased Over The Past 4 Years?

3 min read

Over the past few years, the popularity of solar energy has been on the rise as more and more people become aware of the benefits of clean, renewable energy. However, one major issue that has arisen in the solar industry is the increasing cost of solar panels. In this article, we will explore whether or not the prices of solar panels have increased over the past four years, and what affects these prices.

First and foremost, it is important to note that the prices of solar panels are heavily influenced by the prices of the raw materials used in their production. One of the primary materials used in solar panels is silicon, which is a key component in the photovoltaic (PV) cells that make up the panel. In recent years, the price of silicon has risen due to increasing demand from various industries and lagging supply. This could have a direct impact on the cost of solar panels, as PV cells account for a significant portion of the overall cost of the panel.

Furthermore, there has been a shortage of certain raw materials used in the production of solar panels. For instance, the supply of silver, which is used as a conductor in PV cells, has been tight in recent years. This has led to an increase in the cost of silver.

Lastly, the COVID-19 pandemic has had a significant impact on the solar industry. The pandemic led to a disruption in the global supply chain, resulting in delays and shortages of various components used in the production of solar panels. This, coupled with the increased demand for solar panels, has had an affect on prices.

While the cost of certain components of solar panels may have increased, it is important to note that the cost of solar panels in South Africa has decreased, and solar energy remains a cost-effective and environmentally-friendly alternative to traditional energy sources. As the industry continues to grow and mature, it is expected that the prices of solar panels will eventually stabilize and maybe even decrease more as technological advancements are made.

June 2022: Prices range between around R2500 for a 345W Monocrystalline Solar Panel and R4500 for a 540W Monocrystalline Solar Panel.

In 2019, the price of a 345W monocrystalline solar panel was approximately R3 535,35. In 2023, the same panel costs R2 500. That marks a 29% decrease in 4 years. This is really encouraging considering that South Africa has managed this amid the wildly increasing demand in solar panels and without much government intervention, especially in the form of tax incentives that other countries have.

Although prices for solar panels have decreased in South Africa, the prices for solar installation has increased. This could be due to many different factors involved in the sale of solar panels but is most likely due to the fact that the demand for solar in South Africa has been exponentially increasing since 2017. It’s actually not surprising, considering that the country imported R2,2 billion worth of solar panels in 2022.

2019:

2023:

Right now (in 2023) Capitec estimates the costs of installing solar and going off-grid between R150 000 and R350 000. In 2019, NexSolar estimated that the costs of the same job would range from R63 000 to R200 000, an average price increase of 47,4%.

I really hope that these prices stabilise sooner rather than later, so that solar power can become affordable for as many people as possible.

What do you think about the solar power price increases? Do you think they are fair? Share your thoughts by replying to this email!

For more information on solar panel prices, or any other energy related articles, view the blog posts on my website and be sure to open my weekly emails every Tuesday at 9am CAT.

Get your load shedding schedules here: Municipal Loadshedding schedules - Distribution (eskom.co.za)

Latest fuel prices: Fuel Pricing - AA

World's first mountainous solar farm - https://youtu.be/6COr0FQ2MsU

World's largest floating solar farm in China - https://youtu.be/qKpYH5SYUeo

'Solar trees' in Florida - https://youtu.be/8d7J5wAtdn4

'Solar tree' on North Carolina university's campus - https://youtu.be/oi1t_jSWZN8