Drop by half from what starting point? 10 yr payback with what sort of cost model?
Current *average* prices for panels are $4/watt, but you can get deals at $2/watt or less:
http://www.ecobusinesslinks.com/solar_panels.htm
$1/watt is on the horizon with new manufacturing techniques from companies such as Nanosolar (
http://www.nanosolar.com/).
Assuming $1/watt, a flat $0.15/KWh conventional electricity cost and an average of 6 hrs/day of sun, payback is about 3 yrs for the panels alone; add another $1/watt for installation, inverters, etc, brings it to roughly 6 yrs. At today's prices of $2/watt for the panels plus the same $1/watt for installation, payback would be about 9 yrs -- not counting any federal or state tax credits (which can be considerable).
Payback periods are generally lower for solar thermal, if you're replacing electric water heaters (rather than gas).
Of course, if you live somewhere that doesn't get much sun, and/or that has much less expensive power, then the payback period would suffer accordingly.
Rather than panel costs dropping by half, another way to look at it is how likely is it that your local power costs will double? Things like an oil shock, more war or political instability in the Mideast, or even just a big burst of inflation, could cause power prices to double much more quickly than is generally expected.
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