More reasons to install solar panels

Technology prices traditionally trickle down to affordability. Solar panels are following a similar trend. Manufacturing is scaled-up, costs come down as people adopt.

This concept brings down the price for everyone. Nothing would give me more pleasure than seeing PV solar panels springing-up like satellite dishes.

However, eight billion people are competing for scarce resources. The golden age of cheap energy and commodities is a thing of the past. Shortages of rare-earth minerals are predicted!

Manufacturers including Sharp and Sanyo are beginning to experience higher manufacturing costs because of higher mineral costs. Rare-earth minerals such as Neodymium, Yttrium, Europium, Terbium, and Dysprosium are widely used in the manufacture of wind for turbines, electric car, and battery storage devices.

Solar panel manufacture is becoming affected too. Minerals sourced in China give the state a monopoly.

The Chinese government is restricting supply and slowing the future growth of solar panel manufacturing outside their own country. Sadly, if everyone decided they wanted solar panels, we would see supply problems.

The US and EU have growing concerns that China dominates the distribution of critical minerals.

China could prioritise resources for its own people.

The export generation tariff is progressively reduced, so it may be the best time to install solar panels as prices are still reasonable. The tariff rate was cut recently, so this is another sound reason to install today before further cuts arrive.

This is what I call the PV see-saw effect.

The price of energy is rising unabated. As energy prices continue to rise, hopefully so will the number of people installing solar panels. On the other side, a higher number of adopters will gradually wear away the need for the incentive.

The feed-in tariff scheme was always designed to be progressively reduced over time. So if you’re considering installing a PV solar system, do you earn a higher rate-of-return or risk higher manufacturing and product costs?

Stay ahead of the crowd.