Solar panel prices have seen a significant decrease over the past decade due to various factors, including technological advancements, economies of scale, and increased competition in the solar industry. Here's a review of the trends and reasons behind the price decrease of solar panels:

Technological Advancements:

• Efficiency Improvements: Solar panel efficiency has steadily increased, allowing more electricity to be generated from the same amount of sunlight. Higher efficiency panels can produce more power with fewer materials, reducing overall costs.
• Manufacturing Innovations: Innovations in manufacturing processes have led to cost reductions. Automated production lines and improved quality control have streamlined manufacturing and lowered labor costs.

Economies of Scale:

• Increased Production: As demand for solar panels has grown globally, manufacturers have ramped up production to meet this demand. Larger production volumes often lead to lower per-unit costs due to economies of scale.
• Supply Chain Optimization: Solar panel manufacturers have optimized their supply chains, sourcing materials more efficiently and reducing transportation costs.

Policy and Incentives:

• Government Subsidies and Incentives: Many governments worldwide have implemented policies to promote renewable energy adoption, including subsidies, tax credits, and feed-in tariffs. These incentives reduce the upfront cost of installing solar panels, driving demand and encouraging innovation.
• Research and Development Funding: Public and private investment in solar energy research and development has accelerated technology improvements and contributed to cost reductions.

Market Competition:

• Increased Competition: The solar industry has become more competitive, with numerous manufacturers competing for market share. This competition has driven down prices as companies seek to offer the most cost-effective solutions.
• Global Trade: Solar panels are now produced and traded globally. International trade agreements and reduced trade barriers have facilitated the flow of solar panels, promoting competition and driving down prices.

Price Trends:

• Declining Costs: The average price of solar panels has dropped significantly over the past decade. According to the International Renewable Energy Agency (IRENA), the global average cost of solar PV modules declined by 89% between 2010 and 2020 .
• Price Transparency: The increased availability of price information and comparison tools online has empowered consumers to make informed purchasing decisions, further incentivizing price competitiveness among manufacturers.

Future Outlook:

The trend of decreasing solar panel prices is expected to continue in the coming years. Ongoing technological advancements, coupled with supportive policies and growing demand for renewable energy, will likely drive further cost reductions, making solar energy increasingly

affordable and accessible to a broader range of consumers and businesses.