Solar commodity: Most silicon solar cells use polysilicon, shown here.
Credit: Courtesy of Wacker Chemie Ag

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Solar Costs Heading Down

  • July/August 2008
  • By Kevin Bullis

Silicon shortages drove up prices, but supplies are now increasing.

   

In 2003, the spot-market price of a kilogram of silicon used for solar cells was $24.

But by 2007, it was $400.

Silicon, which is derived from quartz, has accounted for up to one-third the cost of a solar panel since a boom in solar power drove up the price of raw materials. But an expected jump in silicon production should improve solar power's economics.

 

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