Dropping Solar Panel Costs and Grid Parity

Solar is, by any measure, a hot industry. Even with the reduction in subsidies from Germany and Italy, the world's two largest solar markets, global spending on solar installations continues to be high. Analysts suggest that this year's solar purchases will amount to roughly the same as last year's, 27 GW globally, despite the reduction in subsidies in many parts of the world. Part of this growing demand is the reduction in costs. Solar's installed cost has dropped 10 percent just in the last 4 months, as manufacturers are being forced to compete in a heavily commoditized market.