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Solar-Power Costs Falling Even Faster Than Expected Due to Virus

  • U.S. residential-system prices will fall 17%: Wood Mackenzie
  • Demand waning amid pandemic, creating oversupply of panels
A Solar Panel Retrofit Install As California Becomes First State To Order Solar On New Homes
Photographer: David Paul Morris/Bloomberg

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.