Solar Panels Are 50% Cheaper — So Why Hasn't Solar Gotten

It's a question installers hear constantly: panel prices have dropped roughly 50% globally since 2023 — so why hasn't a customer's quote dropped by anything close to that?

The answer is that the module is only one line item in a solar installation, and it's not even the biggest one for most projects. Financing, labour, mounting structures, inverters, wiring, engineering, permitting and grid connection costs all sit alongside the panel price — and those costs haven't fallen anywhere near as fast. Globally, the average cost of utility-scale solar electricity has stayed close to flat year-on-year even as module prices have been cut in half, because the panel is simply a smaller and smaller share of what a customer is actually paying for.

Where the Cost Actually Goes

A helpful way to see this: on a typical installed system, the panels themselves are often one of the smaller line items once everything else is accounted for.

Illustrative breakdown — actual proportions vary by project size, site conditions and system type.

A useful way to think about it: the module is the ingredient, not the meal. A cheaper ingredient doesn't automatically mean a cheaper meal once you account for labour, equipment, and everything else it takes to get a working system on the roof.

What This Means for Your Customer Conversations

When a customer pushes back on price because "panels are so cheap now," it's worth walking them through the full cost stack rather than just the module line — mounting and structural work, inverter and battery hardware, cabling and protection equipment, labour and commissioning, and compliance/certification. Each of those has its own cost trajectory, and most haven't fallen at anywhere near the rate module prices have.

It's also worth being upfront that a global percentage drop in wholesale module prices should never be expected to translate directly into the same percentage drop on a local residential or commercial quote — too many other cost lines sit between the factory and the finished install.

Why "Cheapest Panel" Isn't the Whole Story

There's a second layer to this worth flagging: intense global competition has squeezed manufacturer margins hard over the past two years. That's good news for buyers in the short term, but it's also a reason to weigh supplier stability and long-term bankability alongside sticker price — a panel is only as good as the warranty behind it, and a warranty is only as good as the company standing behind it years down the line.

That's part of why we're selective about who we distribute for — pre-qualified brands with real manufacturing track records, not just whoever currently has the lowest per-watt price.

Figures referenced from IEA Energy Technology Perspectives 2026 and IRENA Renewable Power Generation Costs in 2025.