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Solar panels are so cheap now that in many places around the world, if a business isn’t running on solar energy, it’s going to struggle to compete. But as the Financial Times reports, the influx of cheap panels is placing new strains on the grid, and the underlying business model of utility companies which see shrinking profits alongside an explosion in self-generation.
At the start of this century, solar panels were priced around $5 per watt they generated. Today, that’s more like $0.12 per watt, almost entirely driven by China’s enormous production of solar panels, which are currently estimated to be in the region of 1.36 terawatts per year. But where this more affordable form of green energy was initially mostly used in hard-to-reach places or in economies where decarbonizing was attractive, the low cost has now made it a fundamental part of some businesses.
The FT cites a cement producer in Northern Pakistan that sees solar energy as a necessity to survive. With its rivals already using solar, it is struggling to compete on price because the others’ low energy costs allow them to be more competitive, regardless of fluctuations in fuel pricing impacted by global trade and conflict.
This is becoming increasing prevalent in developing countries. Estimates from the green-energy-focused think tank Ember suggest that African countries will jointly bring online over 17GW of solar power generation in 2026. This in turns helps them replace otherwise carbon-generating sources, like kerosene lamps and charcoal-cooking fires.

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Although the US government has stymied some attempts to accelerate solar roll out, plug-in solar is still making inroads, allowing for smaller solar setups, even on balconies, to flourish. The UK recently legalized these new plug-in systems and they are expected to see swift adoption under the looming shadow of the US-Iran war and its ongoing energy turbulence.

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But while some businesses are buoyed by the technology, traditional utility companies face new challenges. With so many homes and businesses switching to solar, often those with larger energy usage, utility firms are contending with reduced revenue, and less reliable demand. Cloudy days suddenly see millions more homes and businesses demanding energy from the grid, where otherwise they would rely on their own solar power.
On top of that, national grids not designed with two-way power transmission in mind are straining under the exploding solar generation capacity. Day-long blackouts in Spain and Portugal in 2025 have been linked to the grid not being adapted to the increasing capacity for solar generation from individual homes and businesses.
As more and more people move off-grid for the majority of their electricity, too, it raises questions about who should be paying for grid infrastructure and maintenance. But raising prices on remaining customers further risks punishing those who can’t afford or physically fit solar panels on to their home.
Part of the solution may be using AI to better manage grid loads and the influx of solar energy, with smart forecasting that uses weather patterns to provide a more responsive energy grid.
While designing a modern power grid may be more complex and remain costly in the near-term, the genie is not going back in the solar bottle. As global disturbances push up fuel prices and increase uncertainty, a growing majority of people just want stable, affordable power. Solar looks set to be the best way to achieve that.
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Jon Martindale is a tech journalist from the UK, with 20 years of experience covering all manner of PC components and associated gadgets. He’s written for a range of publications, including ExtremeTech, Digital Trends, Forbes, U.S. News & World Report, and Lifewire, among others. When not writing, he’s a big board gamer and reader, with a particular habit of speed-reading through long manga sagas. 
Jon covers the latest PC components, as well as how-to guides on everything from how to take a screenshot to how to set up your cryptocurrency wallet. He particularly enjoys the battles between the top tech giants in CPUs and GPUs, and tries his best not to take sides.
Jon’s gaming PC is built around the iconic 7950X3D CPU, with a 7900XTX backing it up. That’s all the power he needs to play lightweight indie and casual games, as well as more demanding sim titles like Kerbal Space Program. He uses a pair of Jabra Active 8 earbuds and a SteelSeries Arctis Pro wireless headset, and types all day on a Logitech G915 mechanical keyboard.
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