Price hike on rooftop solar installation temporary: GlobalData

Installation cost rose by $700 in 2021, which was linked to logistics constraints.

The rooftop solar installation price rose by $700 in 2021, driven by logistics constraints due to the pandemic, which GlobalData expects to go down by 2023.

According to Attaurrahman Ojindaram Saibasan, Power Analyst, GlobalData, rooftop solar system for residential property cost $9,300 in 2014. This dropped by $600-900 annually until 2020 to around $4,550.

“In 2021, this price rose by $700—a cost not seen since 2018. We don’t expect these costs to go back down now until 2023,” he said.

Based on its Rooftop Solar Photovoltaic (PV) Market, 2021 – Global Market Size, Market Share, Major Trends, and Key Country Analysis to 2030, GlobalData found that the decrease in cost between 2013 and 2020 was due to the increase on supply of solar equipment.

On this note, GlobalData linked the sharp increase in solar PV system prices to the logistics constraints brought about by the COVID-19 pandemic.

“The delay in shipments, combined with a lack of availability of workforce, caused a major hindrance in the value chain. Cost is expected to moderately increase in 2022, before declining gradually between 2023 and 2030 thanks to advancements in technology, the reduction of component posts, and the increasing scale of production,” he said.

“Some countries have provided temporary relief in the form of incentives and rebates to overcome the pandemic’s challenges.”

Saibasan added that the transition of both residential, and commercial and industrial consumers to “prosumers” is increasing due to the adoption of solar panels within building materials, and a preference for small-scale solar in smart cities and microgrids.

In 2020, the global rooftop cumulative solar PV capacity stood at 248.8 gigawatts (GW), reflecting a 23.8% increase compared to 2019.

The Asia-Pacific region accounted for 53.5% of the market share, led by China which had 12.4% of the global market. It is followed by Europe, and North & South America with a 29.1% and 13.6% share, respectively.