Solar Panel Power Generation Competition

How do solar panels compete?

We develop a model of competition in the solar panel industry. Solar firms manufacture panels that are differentiated both vertically and horizontally, and compete by setting quantities. The equilibrium of the model is consistent with a set of stylized facts that we document, including variation in prices, markups and market shares across firms.

How can a competitive advantage be sustained in the solar PV industry?

Competitive advantage is sustained in the wind industry but brief in the solar PV industry. Pioneering domestic environmental regulation may foster the creation of new eco-industries. These industries could benefit from a competitive advantage in the global market place.

Is the solar module industry competitive?

The solar module industry, however, is not a perfectly competitive industry. As documented in Section 2, there are differences in prices, markups and market shares of different firms in the industry, all indicative of deviation from the assumption of perfect competition.

Why should you participate in a solar competition?

Competitions also make it easier for new solar innovators to enter the solar market, foster interdisciplinary collaboration, and increase the number and quality of perspectives working to develop solutions. Learn more about each of the SETO-funded prize competitions below.

Does policy-induced competitive advantage eat off in the solar PV industry?

Several statistical tests confirmed the robustness of these results. However, while policy-induced competitive advantage appears to remain stable over time for the wind industry, competitive advantage tapers off in the solar PV industry after four or five years.

Are solar and wind power cost-competitive?

For the last 13 to 15 years, renewable power generation costs from solar and wind power have been falling. Between 2010 and 2022, solar and wind power became cost-competitive with fossil fuels even without financial support.