Solar panels made in China will be sold at 12 cents per watt in 2026, showing a significant decrease from 5 to 6 dollars in the early millennium. This price reduction has aided in the increase of solar panel installations in various locations including cement factories in Pakistan, homes in the Philippines, and suburbs in Australia.
Impact on Industries and Households
The cement company "Best Way" in Pakistan has reduced its energy costs by up to 40% by utilizing solar technology in its five production units. In the company's Chakwal factory, the installed capacity of 26 megawatts of photovoltaic panels supplies more than a quarter of the electricity needed for these facilities. Abdul Wahid, the CEO of the Chakwal factory, has stated: "This is the only way we can compete. Our competitors have already gone this way." This factory produces over 3 million tons of cement annually.
Global Growth in Solar Capacity
In the Philippines, the installed capacity of solar panels has nearly doubled in the past year, and it is expected that by 2026, Africa will reach a record installation of 17 gigawatts of solar capacity. This growth coincides with an increase in the use of small and distributed systems in industries and commercial units. In India, the government program for installing solar panels in homes, launched in February 2024, has so far installed panels on over 5.5 million homes, with about 500,000 new homes added to this number each month.
This program, with an initial budget of about 9 billion dollars, transfers central subsidies directly to homeowners' bank accounts. Additionally, the program uses net metering systems that allow homes to sell their excess electricity back to the grid.
Australia is also recognized as a leader in the use of solar panels worldwide. Over 4.3 million homes and small businesses in this country, equivalent to 43% of the total, have solar panels. The total installed solar capacity in Australia has reached 28.3 gigawatts, surpassing coal power generation, which is about 22.5 gigawatts. However, such a high level of adoption could lead to major instabilities in the electricity grid.
In Europe, plug-in solar panels (balcony panels) have gained significant popularity. These panels allow users to generate electricity by installing a small panel and connecting a micro-inverter to a regular wall outlet. The UK recently legalized plug-in solar systems in August of this year and issued permits for a maximum AC output of 800 watts for direct connection to wall sockets.
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