Solar-Grade Silicon Prices Could Drop 43% Next Year: New Report Claims
by Matthew McDermott, New York, NY 
on 08.19.08
photo: Solar Freaks
There’s been a bunch of news lately pointing to solar power costs falling in the near future. A new non-petroleum backing material and a new panel from Day4 Energy being the most recent examples of developments driving down the cost of solar power. Here’s another indication that solar prices will be falling:
Contract Prices for Silicon Will Drop
A new report, by New Energy Finance says that the price of solar-grade silicon is expected to drop by up to 43% next year. By 2015, the contract prices for polysilicon deliveries will be less than $67 per kilogram, or 67% below current contract prices. Though the report notes that this is still above spot prices paid for silicon.
GreenTech Media says that New Energy Finance does not believe that multicrystalline wafer prices to fall as quickly as silicon.
Wafers are expected to retain their value in 2009 as the supply of wafers eases more slowly than the silicon supply, and then to drop by 41 percent in the next five years, reaching prices below $6 per wafer, or $1.62 per watt, beginning in 2011.
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I wish these reports would clarify if the price drop means that the price for consumers will drop. Just because something will be cheaper to manufacture doesn't necessarily mean the price savings will be passed on to us.
I'd also like to see it compared to current prices as well as how much the price has dropped or risen within the last year or two. I suspect the price has gone up because of the demand.
Why would the price drop? Prices are determined by supply and demand. With supply tight and demand huge, how can the price drop as much and that quick?
i agree with the above comments. for it to have any positive impact, the savings must be passed onto the consumer