Distributed solar gen on its way to grid parity

April 23, 2013 | By Barbara Vergetis Lundin

The traditional centralized power generation model is evolving globally from a financial and engineering model relying on large centralized power plants owned by utilities to one that is more diverse in terms of energy generation sources and the ownership of that generation.

One type of generation, distributed solar photovoltaic (PV), is expected to grow significantly with 220 GW of capacity installed between 2013 and 2018 generating $540 billion in revenue, according to Navigant Research.

These generation systems offer the benefit of producing electricity onsite, reducing the need to build new transmission capacity and avoiding line losses.

"Used in applications ranging from residential to small commercial to industrial settings, distributed solar generation offers significant benefits to consumers while adding resiliency to an electric grid evolving beyond the traditional centralized model," said Dexter Gauntlett, research analyst, Navigant Research. "Though this market is still primarily driven by government incentives, distributed solar PV will continue its steady march toward grid parity in major markets over the next few years."

Solar financial incentives will not be around forever. As a result, many companies are looking at 2017 (the year after solar PV investment tax credits expire in the U.S.) as the year that solar PV will be able to stand on its own, without government support, Navigant contends.

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http://www.fierceenergy.com/story/distributed-solar-gen-its-way-grid-parity/2013-04-23