Solar industry expected to enjoy stability after “growing pains”

It may seem like the solar industry had died an early death, but a new report from consultants McKinsey claims it is simply a lull before the industry enters a […]

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By Tom Gibson

It may seem like the solar industry had died an early death, but a new report from consultants McKinsey claims it is simply a lull before the industry enters a more stable phase of maturity.

‘Solar power: Darkest before dawn’ finds that underlying PV costs are likely to continue to drop as manufacturing capacity doubles over the next three to five years and even claims the cost of a typical commercial system could fall by 40% by 2015. As years of subsidies come to an end and new producers such as China flood markets with capacity, demand has dropped dramatically.

Even though subsidies are drying up, the research expects the global solar market to grow and even identifies five key 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.