After several years of strong solar industry growth, the tide has turned briefly as supply of solar panels currently exceeds demand and governments have begun to curtail generous tax incentives and rebate programs.
Is this the beginning of the end?
Not even close!
According to a published report analyzing McKinsey research, the solar industry is merely experiencing some growing pains and will soon be out of the awkward “teenage” years.
The report, entitled, “Solar power: Darkest before dawn” projects that the average cost of solar panels will continue to drop as it has in recent years - 40% by the year 2015, and an additional 30% by 2010. At the same time, solar manufacturing is expected to double to meet demand, allowing companies to reap impressive profits notwithstanding lower prices.
This growth, over the next 20 years, will stem largely from demand based on viable stand-alone economics in five customer segments: off-grid, residential and commercial in areas with good and moderate sun conditions, isolated grids, peak capacity in growth markets, and new large-scale power plants
Can you imagine a 70% drop in prices for solar panels in just the next 8 years?
The best part is that the falling cost of solar panels and predicted industry changes will benefit consumers, as well as companies that adapt with reducing their overhead costs to maintain healthy profit margins.