Solar Growth in 2010 Projected to Exceed 40%

Solar power — By Stephanie on May 21, 2010 at 5:59 am
3725051641 81dc5010d1 Solar Growth in 2010 Projected to Exceed 40%

Significant solar power growth in 2010 (image from Wayne National Forest on Flickr)

Pike Research issued a new white paper this week in which solar growth in 2010 is projected to exceed 40%.  Those that are interested in solar trends, the solar market and… perhaps watching and waiting to decide whether to install solar panels… will be interested in the findings of the report.

In recent months, we’ve seen solar demand grow, while the cost of solar panels has fallen by as much as 50%.  Coupled with generous government rebates and tax incentives, many homeowners have decided to take the plunge and switch to the renewable energy resource.  So what is fueling the continued solar growth in 2010?

Pike Research outlines a number of factors, including falling polysilicon costs (which influence the price of crstaylline silicon (PV) solar cells), which could lead to considerable increase in solar market demand in the coming years.  In fact, a 25% compound annual growth rate (CAGR) from 2010 to 2013 is projected.

3904083660 b575ee3f2d Solar Growth in 2010 Projected to Exceed 40%

Prices for panels dropping while demand increases (image from on Flickr)

According to Dave Cavanaugh, senior analyst at Pike Research:

“The solar market is now faced with a gross oversupply of modules.  The industry is currently supplied by more than 190 cell and module manufacturers, making consolidation of weaker competitors an inevitable outcome.”

More good news for the solar market is also anticipated.  With overcapacity and rising competition, the average selling prices for solar modules will continue to fall precipitously, bringing us closer to solar power grid parity by 2013 here in the U.S.

Pike Research expects continued solar growth as a result of demand from the United States, Italy, China, and Germany.  For more information on the various market factors for solar energy, check out “The New Solar Market,” published by Pike.

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