From Guest Blogger RecSolar: Are Higher Cost Photovoltaic Modules Worth It?

A Question of Correlation: Does a Higher Price Tag Indicate a Superior Product?

Like many consumer goods and commodities, a higher price tag does not necessarily indicate a “superior” product. Rather, a higher cost might be a reflection of the uniqueness of an artisanal product, high demand combined with low availability or even a higher price associated with a fashion, trend or novel product. When discussing photovoltaic (PC) modules, however, this question is based on two assumptions. First, that higher-priced PC panels are American-made as opposed to the common less-expensive Chinese products flooding the market and second, that the more expensive panel produced in the US is more reliable, efficient and technologically superior to its Asian competitors. As the reader will discover later in this article, these second questions are not as straightforward as they appear either.

What Are PV Solar Panel Prices?

As PV Panel Guide indicates, overall PV prices have generally decreased — and technology has improved — since the Sharp Corporation of Japan developed the first “viable” solar panel in 1963. There have been hiccups. Last year, ThinkProgress.org’s website Climate Progress published an article bemoaning the falling prices of PV panels. The article’s author explained that the price for photovoltaic panels had continued to decrease even as the US and some European countries put trade controls — such as tariffs and fines — into effect against the nation serving as their primary manufacturer, China. An accompanying graph showed a decrease in the price of c-Si PV prices from $2.75 per watt during the first quarter of 2009 to approximately $1.00 per watt in the third quarter of 2012. However, PV-Magazine now proclaims “the end of photovoltaic module price declines” based partially on a higher demand for PV modules with the most advanced technologies. There is no differentiation in the prices of US versus Chinese modules.

What Factors Determine PV Solar Panel Prices?

According to the PVPanel Guide, panel prices are determined by many factors with the following considered the most influential:

• Their Power Rating Output in Watts with a strong positive correlation to price.
• Their Efficiency Ratings, noted as 11 to 21% for domestic panels, with a positive correlation to price
• Their Manufacturer with the larger multinationals’ mass production capacities with a strong negative correlation to cost.
• The technology upon which a PV module’s construction is based. Essentially, the customer pays more money for the best energy efficiency.

Four common photovoltaic technologies:

Single Crystalline – The oldest, most efficient and most expensive technique with an average module efficiency of 10 to 12 percent.

Polycrystalline (or Multicrystalline) – Less expensive to manufacture with a lower conversion efficiency of 10 to 11 percent.

String Ribbon Solar Cells – This is an even less expensive technique to produce than polycrystalline with an efficiency average of seven to eight percent.

Amorphous or Thin Film – Silicon vapor is applied to modules in a thin film, making this technique the least expensive of all types and providing an efficiency of five to seven percent.

Does a Higher Price Indicate Greater Efficiency?

Higher priced solar PV modules do provide increased efficiency as a function of their production type, which varies by company, and not necessarily the country of origin.

Does a Higher Price Tag Indicate Greater Reliability?

There is no real correlation between the cost of a PV solar panel and its reliability as reported in the literature. As PhotovoltaicModules.org indicates — although details vary — solar panels are made to withstand the elements. Many modules are said to come with guaranteed warrantees for an “electrical production for 10 years at 90% of rated power and 25 years at 80%.” Further, regardless of the country of origin, most retailers of PV modules and domestic installation companies offer warranties through their US outlets.

A Question of Correlation: Does “Made in the USA” Mean American-Made?

Purchasing the most expensive solar PV modules does not guarantee that the module is American-made or even that it was assembled within the United States. According to Green World Investor, a Solar Panel can be labeled as “Buy American” if a “substantial portion” of its manufactured value takes place in the US. What constitutes a “substantial portion” is not explained. Moreover, even “the most successful US Solar Companies — First Solar and Sunpower (now Total) – have always had the majority of their production outside the US in Asia.”

About the author: Renewable Energy Corporation is a residential and commercial solar panel installer serving the Mid-Atlantic region of the United States. Visit Renewable Energy Corp’s website to learn more about American-made solar panels and the cost of switching to solar.