An Alternative Approach to the Feasibility of Photovoltaic Power Stations in Light of Falling PV Panel Prices

Abstract

The current study explores the timing of investing in photovoltaic panels in an era of rapidly falling prices. The main aim of the study was to explore the option to postpone investments in photovoltaic panels to get better returns on investment. It was found on the basis of data from the years 2012 to 2017, that investors who purchased PV installations later in the time period where financially in a better position. The research concludes that on the basis of technology learning curves and forecasts for globally installed capacities it is likely that this trend of falling prices continues, which makes it a sensible option for individual investors to postpone such investments until the first half of the 2020-s, when other motivators are not considered.