The Associated Press reports that solar panel prices have declined over 30% from 1998 to 2008 because of lower manufacturing nd installation costs. State and local incentives have helped in this as well. Analysis are forecasting a 8-10% drop in prices per year over the long term. First Solar Inc. hopes to cut their manufacturing costs for thin film products by a third over the next five years.
The Dept. of Treasury plans to begin issuing $2.3 billion in tax credits next year for companies that make energy equipment – which includes solar panels. Solar companies are also competing for the $11.3 billion more in stimulur monsy for states. Congress agreed in 2008 to pvovice $2.5 billion more in tax credits for homeowners over the next 10 years.
More than half of the states in the US offer enough incentives to cut costs by 40% or more, according to policy analysts working with the Database of State Incentives for Renewables and Efficiency (dsire)