Solar panel prices reach all-time lows, expected to decrease further

Solar panel

ISLAMABAD: Solar panels have become so affordable in various countries worldwide, including Europe, that they are now being repurposed to make garden fences in the Netherlands and Germany, as reported by global media outlets.

Photos shared on social media from European countries reveal a growing trend of utilizing solar panels as garden fences instead of traditional rooftop installations. The high cost of labor for rooftop installations has prompted people in these countries to explore alternative uses for solar panels.

The decline in solar panel prices can be attributed to the increasing production by Chinese companies, which has flooded the global market. This oversupply has made it challenging for US and European manufacturers to compete, resulting in a significant drop in prices.

According to the International Energy Agency, global solar panel supply is projected to reach 1,100 gigawatts by the year’s end, tripling the current demand. Prices on the spot market have already halved in 2023 and are anticipated to decrease by an additional 40 percent by 2028.

Pakistan has also witnessed a decline in solar panel prices, with last year seeing a notable reduction in prices for solar power-generating panels. Currently, the market offers seven to 15-kilowatt systems for as low as Rs 200,000. Solar panel businesses attribute this trend to various factors and anticipate further price reductions in the foreseeable future.