A shift in power: Could solar displace other energy sources?

July 22, 2015 | By Barbara Vergetis Lundin

Following years of module oversupply and artificially low pricing, solar PV is expected to soon shift from a high-cost, subsidized source of energy to a growing market with the potential to displace other energy technologies, according to Navigant Research.

Credit: Fieldsken Ken Fields/Wikimedia Commons

By the end of the decade, solar PV is projected to be cost-competitive with retail electricity prices in a significant portion of the world as module prices and installation costs continue to decline. In fact, Navigant predicts global annual revenue from solar PV installations is to surpass $151.6 billion in 2024.

During the next 10 years, Navigant expects the expanding solar industry to offer a variety of growth opportunities to leading players across the value chain, intensifying competition as companies pursue international opportunities, placing continued pressure on margins, incentivizing further vertical integration, and driving mergers and acquisitions.

"The distributed solar PV generation market continues to transition from being dependent on lavish feed-in tariffs and environmentally conscious wealthy homeowners to a cost-effective source of electricity that is gaining traction across market segments and customer types," said Roberto Rodriguez Labastida, senior research analyst with Navigant Research. "The successful adoption of new business models is expected to continue to further drive the industry in its transition to a post-incentive world in most major markets."

Market activity is shifting from Europe to Asia Pacific and the United States as these markets reach maturity and near grid parity in terms of costs, Navigant says, noting that there is also considerable opportunity in other regions, led by Chile, South Africa, and the Middle East.

At the same time, solar PV is becoming a commodity, as technology costs have steadily declined and pathways to further cost reductions are being pursued, according to Navigant.

For more:
- see this background article

http://www.fierceenergy.com/story/shift-power-could-solar-displace-other-energy-sources/2015-07-22