Solar power is finally maturing as a key energy source on the global stage. In addition to green targets, energy independence and distributed energy, a crucial market accelerator has been the defining of the structure of Feed-in Tariff (FiT) for solar PV-generated power. Along with regulatory dynamics and incentives, this has lowered the Levelised Cost Of Electricity (LCOE) of solar power.
With higher economies of scale, the cost of solar power systems for both residential and utility-scale PV will reach grid parity by 2020 and increase uptake of decentralised solar energy. As a result, stakeholders from raw material suppliers, solar cell manufacturers, solar module manufacturers, and balance of system equipment suppliers to system integrators and installers are positioned for robust growth.
New analysis from Frost & Sullivan, Global Solar Power Market—2016 Update, finds that market revenues stood at $113.75bn in 2015 and will grow at a CAGR of 9.5% to reach $179.13bn in 2020. Installed capacity with grow from 50,780 to 76,600MW at a CAGR of 8.6% for the same period.
Pritil Gunjan, Research Analyst, Energy & Environment, Frost & Sullivan, commented: “Pro-solar incentives and the recently made pledges at the COP 21 summit will ensure that the market for solar PV continues to grow exponentially over the next 5 years. Grid integration of renewables and investment in energy storage initiatives are other market enablers.”
Geographically, Asia will see aggressive expansion of solar PV fuelled by economic growth, urbanisation and greater electrification:
“Extreme weather variations, declining energy reserves, and increase of distributed generation technologies will compel utilities to seek newer models supporting energy efficiency and energy management initiatives. The solar PV supply chain participants are expected to develop new technologies that will lower costs and integrate PVs with flexible infrastructure grids. Innovative business models to integrate solar power will also open opportunities in smart metering, demand response and net metering,” added Gunjan.