Skip to Content

Solar Costs Heading Down

Silicon shortages drove up prices, but supplies are now increasing.
June 23, 2008

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

Solar commodity: Most silicon solar cells use polysilicon, shown here.

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.

Cost of silicon as a percentage of a solar panel’s production cost (below left). Silicon prices (solar-panel makers pay mostly contract prices, below right).

Download a PDF of the article.

Annual shipments of solar panels (most are silicon-based, below left). Silicon available for solar-panel manufacturing (below right).

The Price of Solar
With silicon supplies tight, the price per watt of solar panels (below) started rising in 2003, ending more than two decades of steady declines (in 1980, the price was $30 per watt in today’s dollars). Most observers agree that solar-power prices will now drop.

Keep Reading

Most Popular

What to know about this autumn’s covid vaccines

New variants will pose a challenge, but early signs suggest the shots will still boost antibody responses.

DeepMind’s cofounder: Generative AI is just a phase. What’s next is interactive AI.

“This is a profound moment in the history of technology,” says Mustafa Suleyman.

Human-plus-AI solutions mitigate security threats

With the right human oversight, emerging technologies like artificial intelligence can help keep business and customer data secure

Next slide, please: A brief history of the corporate presentation

From million-dollar slide shows to Steve Jobs’s introduction of the iPhone, a bit of show business never hurt plain old business.

Stay connected

Illustration by Rose Wong

Get the latest updates from
MIT Technology Review

Discover special offers, top stories, upcoming events, and more.

Thank you for submitting your email!

Explore more newsletters

It looks like something went wrong.

We’re having trouble saving your preferences. Try refreshing this page and updating them one more time. If you continue to get this message, reach out to us at customer-service@technologyreview.com with a list of newsletters you’d like to receive.