As seen in Solar Australia

Yet, while further dramatic cost reductions are expected in coming years, the coincident wind-back of Federal and state solar subsidies has left the Australian solar industry in a precarious position. In spite of this, opportunity remains for strategic solar companies to successfully maintain leading positions in preparation for an impending solar revolution.

Since 1997 Australian photovoltaic (PV) system prices ranged between $10–14/ Watt (W), averaging $12/W. According to an Australian PV Association industry survey, PV in Australia 2010, the average system price has halved in 2010 to $6/W. The 2011 pre-subsidy price of 1.5 kilowatt (kW) solar power systems remains close to $6/W, although economies of scale in inverters and installation means that the price of 5 kW systems is already below $5/W.

The $4/W barrier is expected to be reached by 2014 for larger systems and in 2020 for smaller systems. This is significant because it corresponds with conditions in which solar power will then be generated at costs corresponding to those of regular consumer electricity tariffs. The exact timing of this ‘grid parity’ occurrence depends upon relative prices of retail electricity and solar installations.