structural:reformatting
Declining costs and exponential growth

Adjusting for inflation, it cost $96 per watt for a solar module in the mid-1970s. Process improvements and a very large boost in production have brought that figure down more than 99%, to 30¢ per watt in 2018 and as low as 20¢ per watt in 2020. Swanson's law is an observation similar to Moore's Law that states that solar cell prices fall 20% for every doubling of industry capacity. It was featured in an article in the British weekly newspaper The Economist in late 2012. Balance of system costs were then higher than those of the panels. Large commercial arrays could be built, as of 2018, at below $1.00 a watt, fully commissioned.

As the semiconductor industry moved to ever-larger boules, older equipment became inexpensive. Cell sizes grew as equipment became available on the surplus market; ARCO Solar's original panels used cells 2 to 4 inches (50 to 100 mm) in diameter. Panels in the 1990s and early 2000s generally used 125 mm wafers; since 2008, almost all new panels use 156 mm cells. The widespread introduction of flat screen televisions in the late 1990s and early 2000s led to the wide availability of large, high-quality glass sheets to cover the panels.

During the 1990s, polysilicon ("poly") cells became increasingly popular. These cells offer less efficiency than their monosilicon ("mono") counterparts, but they are grown in large vats that reduce cost. By the mid-2000s, poly was dominant in the low-cost panel market, but more recently the mono returned to widespread use.

Manufacturers of wafer-based cells responded to high silicon prices in 2004–2008 with rapid reductions in silicon consumption. In 2008, according to Jef Poortmans, director of IMEC 's organic and solar department, current cells use 8–9 grams (0.28–0.32 oz) of silicon per watt of power generation, with wafer thicknesses in the neighborhood of 200 microns. Crystalline silicon panels dominate worldwide markets and are mostly manufactured in China and Taiwan. By late 2011, a drop in European demand dropped prices for crystalline solar modules to about $1.09 per watt down sharply from 2010. Prices continued to fall in 2012, reaching $0.62/watt by 4Q2012.

Solar PV is growing fastest in Asia, with China and Japan currently accounting for half of worldwide deployment. Global installed PV capacity reached at least 301 gigawatts in 2016, and grew to supply 1.3% of global power by 2016.

It was anticipated that electricity from PV will be competitive with wholesale electricity costs all across Europe and the energy payback time of crystalline silicon modules can be reduced to below 0.5 years by 2020.

Falling costs are considered one of the biggest factors in the rapid growth of renewable energy, with the cost of solar photovoltaic electricity falling by ~85% between 2010 (when solar and wind made up 1.7% of global electricity generation) and 2021 (where they made up 8.7%). In 2019 solar cells accounted for ~3 % of the world's electricity generation.