Silicon
shortages drove up prices, but supplies are now increasing.
By Kevin Bullis
Solar commodity: Most silicon solar cells
use polysilicon, shown here.
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. |
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):
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.
|