The cost of U.S. solar power is dropping faster than expected as the coronavirus stifles demand, according to a report from Wood Mackenzie.
Residential-system prices will fall 17% over the next five years, the research company said Wednesday. That’s steeper than the 14% it had expected before the coronavirus. Wood Mackenzie also sees prices for commercial systems sliding 16%, and utility-scale installations will decline 20%, compared with the prior forecast of 13% and 16%, respectively, over that period.
Falling system costs are boosting the competitiveness of solar against electricity rivals including natural gas and coal, and increases the appeal of rooftop units for homeowners. Already, solar power is among the world’s cheapest electrical sources.