2015 is expected to be the year that the global solar photovoltaics market shifts from a high-cost, subsidized source of energy to a role in which it can compete with and displace other technologies.
By the end of the decade, solar PV is expected to be cost-competitive with retail electricity prices without subsidies in a significant portion of the world.
According to Navigant Research, global annual revenue from solar PV installations is expected to surpass US$151.6bn in 2024.
In a new report Distributed Solar PV market research and consultancy company Navigant Research analyses solar PV capacity and revenue forecasts through 2024, with a focus on distributed systems, broken down by region and selected country.
According to this report following years of solar PV module oversupply and unsustainable, often artificially low pricing, demand has finally caught up.
Solar photovoltaic is becoming a commodity. Technology costs have steadily declined and pathways to further cost reductions are being pursued.
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 – a process that is clearly under way already.
At the same time, analysts predict an increase in complexity of solar business as there is no global single solar PV market.
Local market conditions, retail electricity rates, incentives, and types of systems all vary widely and dramatically affect the cost of a system and its applicability to a region.
During the next 10 years, the expanding solar industry is expected to offer a variety of growth opportunities to leading players across the value chain, intensifying competition as companies pursue international opportunities.
According to the report, this is expected to place continued pressure on margins, incentivising further vertical integration and driving mergers and acquisitions.