Month: September 2020

Solar Panel Sales Soar as Price Continues to Drop

According to the U.S. Energy Information Administration (EIA), shipments of solar panels reached a record-high 16.4 million kilowatts (kW) in 2019. The former record of 13.5 million kW was set in 2016. Imports, exports, and modules produced and sold domestically all qualify as solar panel shipments; modules shipped for resale are excluded.

“These shipments have steadily increased since 2006, driven by significant price declines and policy incentives that encourage solar PV installations,” the report stated. In 2017 and 2018, policy reforms and import tariffs caused shipments to decline slightly.

Solar panels convert light particles – called photons – from the sun, transforming them into electricity that can be used to power electrical grids. They are used in a wide variety of settings, including both business and residential use.

Since 2006, the cost of solar panels has been steadily declining, thus helping propel the growth of shipments. The average price of a solar panel module shipment in 2016 was $3.50 per watt. In 2019, the price decreased to .40¢ per peak watt. The upsurge in residential solar panel demand is somewhat due to homeowner incentives such as the California Solar Initiative, the New York Megawatt Block program, and other state-level policies.

“Higher module efficiency, greater labor productivity, and lower supply chain costs are largely responsible for the declines in the average value of solar PV modules,” the report stated. The price of solar panel modules and components has declined due to both global surplus (reduced demand in China) and competitive costs within the industry.

A report published in February by Financialnewsmedia.com claims that demand for solar industry installations will double by 2023.

Read the entire report by the EIA to learn more about the record-high sales of solar panels.
 

J&P Electrical is a full-service electrical equipment company. At J&P, we supply contractors, end-users, and supply houses with new surplus, quality reconditioned, and obsolete electrical equipment. We also purchase a wide range of electrical equipment, such as bus plugs, ducts, panel switches, substations, and transformers. Call us at 877-844-5514 or visit us at https://www.jpelectricalcompany.com.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.

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Electricity Rates Measure COVID-19’s Economic Implications

Researchers and students at the University of Exeter Business School developed a way to measure the immediate impact of COVID-19 lockdowns on an economy’s Gross Domestic Product, or GDP. To calculate this data, the scientists analyzed hourly electricity consumption rates during Italy’s spring lockdown to measure the impact of those activities on their economy during that time. Traditional metrics and official statistics take at least three months to calculate and will not remove other factors affecting consumption and production.

Data was analyzed from the Italian power market from January 2015 through June 2020. The results gave the researchers an idea of what the electrical consumption would have been if not for COVID-19 restrictions. The hypothetical model was then cross-referenced with actual consumption rates during and after the lockdown. The end result was then rescaled to focus on the implications for GDP.

In the first quarter, Italy’s GDP fell 5.1 percent, and during the most intense three-week lockdown period (March and April, when many factories were also shut down), the researchers calculated a reduction in the GDP by about 30 percent.

As Italy gradually reopened socially and economically, the GDP was still about 8.5 percent lower than it would have been without the outbreak at the end of June.

Several caveats were noted, including possible shortcomings of solely examining a short amount of time versus a more extended period. The lengthier timeframe would include added influences from other national procedures, as well as potential spillover effects from pandemic policies. Moreover, as adaptation strategies such as working from home are implemented, the researchers noted, “The effect of future lockdown restrictions may become less severe. This consideration has to be balanced against the potential for long-term and repeated lockdowns exerting cumulative and progressively more adverse economic effects, including through the impacts on human wellbeing.”

Read the complete research study conducted by students at the University of Exeter Business School for a detailed examination of the mathematical formula implemented to calculate the data.
 

J&P Electrical is a full-service electrical equipment company. At J&P, we supply contractors, end-users, and supply houses with new surplus, quality reconditioned, and obsolete electrical equipment. We also purchase a wide range of electrical equipment, such as bus plugs, ducts, panel switches, substations, and transformers. Call us at 877-844-5514 or visit us at https://www.jpelectricalcompany.com.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.

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