Solar panel prices to drop as demand outstrips supply

The price of solar panels could be set to fall, as demand outstrips supply for the first time ever.

Market experts say a surge in the level of manufacturing capacity for solar panels has sparked a slump in the solar power business.

But it could be good for the industry.

The experts say a price slump could hasten the take-up of the technology, which would also boost the volume of future activity, the Financial Times reports.

Dean Cooper, an analyst at Ambrian, said the high cost of making solar components has long been an impediment to growth in sales.