The price of solar energy could further fall this year, experts say. A Bloomberg New Energy Finance (BNEF) analysis published by PV Magazine predicted a 34 percent drop in the price of multicrystalline solar modules in China, an event expected to influence prices around the world. The United Nations Framework Convention on Climate Change (UNFCCC) said a price drop could open up “further space for more ambition to tackle climate change, which is crucial to achieve the goals of the Paris Agreement.”

Solar panels on a roof with mountains in the distance

The 2018 solar panel price decline could be about the same as the drop in module prices in 2016, and would be exceeded only by 2011’s 40 percent drop in prices, PV Magazine said. BNEF’s benchmark monocrystalline module price was $0.37 per watt for 2017’s fourth quarter, and could be just $0.24 per watt by 2018’s close. BNEF experts predict module prices will drop another 10 to 15 percent next year.

Related: The cost of high-efficiency solar panels fell 37% in 2017

The price decline is a result of withdrawn support for China’s photovoltaic market. Since China is the biggest solar market in the world, the price fall could emanate. PV Magazine cited a BNEF note saying, “Oversupply is universal.” The note predicted a market panic initially, and developers could halt installation in the third quarter and wait for cheaper module prices and release of new quotas.

India and developing countries around the world could benefit from the panel price decline, according to the UNFCCC. The UNFCCC praised the International Solar Alliance (ISA), started by India and France in 2015 to focus on investment in large-scale solar power in developing countries. UN Climate Change Executive Secretary Patricia Espinosa said earlier this year, “Our globally agreed goals in the Paris Agreement and the Agenda for Sustainable Development cannot be achieved without your [ISA’s] effort to scale up solar power generation and support countries with great solar potential … This is our moment to deliver on the promise of a better future agreed in Paris.”

+ Bloomberg New Energy Finance

Via PV Magazine and the United Nations Framework Convention on Climate Change

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