The solar panel cost per watt in 2014 will probably decrease due to a number of factors. A decreasing cost of silicon and other parts of the solar panel are the main reasons for decreasing cost, whilst economies of scale and advances in technology contributed to about 20% of the price fall.
From 2014 – 2017 prices are expected to keep falling. However the savings will not come primarily from lower silicon prices. Instead technological advances, and automated production lines will be the biggest contributors.
In 2011 the module manufacturing cost for solar panels was $0.85 per watt. In 2012 this dropped to $0.5 per watt, $0.47 in 2013 and projected to be at $0.46 by 2014. It’s important to remember that these are the manufacturing costs, with at least 20% margin added on top. Installation costs remain an important factor and are not taken into consideration here