Plummeting prices of polysilicon, a raw material used in solar modules, could make power from solar photovoltaic plants as cheap as Rs 5 a unit or less by 2015 against Rs 12 a unit as estimated today.

Polysilicon, made out of refined sand, was selling at $475 a kg in March 2008. Today, it is selling at $33 a kg, and the industry expects it to fall further to $20 a kg, as global capacity doubles to five lakh tonnes by 2014.

Accordingly, solar module prices have also been falling. What used to be sold at $1.7 a watt a year back (or Rs 8.5 crore a MW) is now at around $1 a watt (Rs 5 crore a MW). The downturn is expected to continue, as leading module manufacturers strive to improve efficiency.

For example, US module maker First Solar says its panel efficiency — a measure of how much of sun's energy falling on the panel is converted into electrical energy — is expected to rise to 13.5 per cent in 2014 from 11.7 per cent now. When that happens, First Solar will be able to produce panels for as low as 53 cents a watt (Rs 2.6 crore a MW).......Read More

Source: Business Line