Empirical Analysis of Factors Influencing Price of Solar Modules
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Governments must expand channels for renewable energy funding and R&D expenditures toward renewable energy technology.
The decline in solar module prices is one of the key drivers behind the growth of the solar energy market. Thus, the price reduction mechanism in solar modules has become an important topic as the role of solar electricity in the overall energy supply and the market value of solar modules grow globally. Many empirical analyses have been carried out to unveil the mechanism behind this price reduction. However, the research performed on the price reduction mechanism of solar modules over the years have focused purely on the technological aspect of the manufacturing. When analyzing price, the influence of economic factors such as interest rate and exchange rate must also be taken into consideration to achieve a precise analysis. We use an oligopolistic model and econometric method to determine the economic factors that have an influence on solar module prices.
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