Distributed generation expects double to triple digit growth
August 2, 2013 | By
Barbara Vergetis Lundin
Driven by feed-in tariffs (FIT) and the commoditization of photovoltaic (PV) modules along with innovative leasing programs for residential solar installations, distributed solar PV systems are expected to see double and, in some countries, triple-digit growth over the next five years, according to Navigant Research. Distributed solar power systems offer a number of advantages over large, centralized solar arrays, including reducing the need for new transmission capacity and reducing efficiency losses from transmission. "It is a great time for consumers and end users to purchase or lease distributed solar PV systems, as prices continue to fall in the midst of fierce competition and continued consolidation," said Dexter Gauntlett, research analyst with Navigant Research. "Paradoxically, the impending slowdown in government-funded initiatives will actually benefit the market, as governments retool their FITs to place greater emphasis on onsite generation, opening the door to new business models and creating opportunities for the entire distributed solar value chain." At the same time, solar PV trade disputes are expanding around the world at different points in the value chain, creating uncertainty for many companies, particularly in the United States and Europe. China, already the leader in manufacturing, is anticipated to install more solar PV systems domestically in 2013 than any other country, according to the report. Ultimately, solar PV price reductions are expected to continue, albeit at a more gradual rate compared to the past 3 years. For more: Related Article: Sign up for our FREE newsletter for more news like this sent to your inbox! |