+44 (0)24 7671 8970
More publications     •     Advertise with us     •     Contact us
 
Loading...
{megaLeaderboard}
{normalLeaderboard}
News Article

Frost and Sullivan find affordability key to PV remaining top renewable in US

News

Solar photovoltaic (PV) will hold its spot as the fastest growing technology in the U.S. energy industry for the next four years. The prices of solar modules have been in a free fall since 2008, accelerating PV systems' commercialization, while encouraging the development of new financing models for the residential sector.

New analysis from Frost & Sullivan's Analysis of the U.S. Residential Solar Power Market research finds that the market earned revenues of more than $1.73 billion in 2011 and estimates this to reach $3.04 billion in 2016. The cumulative PV solar installations in the United States reached 4,450, which generated 1,855 megawatts (MW) of solar power in 2011. The residential segment accounted for 15.2 percent, or 282 MW, of the annual installations during 2011, and is projected to grow at a compound annual growth rate of 11.9 percent from 2011 to 2016.

Prices decreased by almost 50.0 percent since 2008 on the back of the economic downturn, the resulting lower demand for solar energy, and an increased supply of polysilicon. The prices will continue to decline "“ albeit, at a lower rate "“ in the next four years, due to economies of scale and technological improvements, making solar energy more affordable to residential customers.

"New financing methods, such as solar lease programs and power purchase agreements, are diminishing the main barriers to solar system installations," said Frost & Sullivan Senior Industry Analyst Georgina Benedetti. "These barriers include high up-front costs and complex installation and maintenance."

Due to PV systems' high capital, it could be almost 20 years before consumers recover the installation costs through solar electricity savings. The market also experienced significant supply-demand imbalance throughout the value chain in 2011. Most solar module manufacturers reduced prices, decreased margins, and, in some cases, closed some manufacturing facilities. Further, expiration of the 1603 grant program is expected to affect new system installations, especially beyond March 2013.

PV module suppliers could increase the uptake of their products in the residential sector by providing a one-stop shop for all solutions "“ from engineering design to installation and maintenance to government grant paperwork.

"In the last two years, the expanded manufacturing capacity in the solar industry, in combination with technological improvements, has lowered the wholesale module prices, making solar panels reasonably priced," noted Benedetti. "Moreover, the escalating competition from low-cost Chinese companies is compelling U.S. manufacturers to focus on improving quality and efficiency, while simultaneously reducing costs, to stay afloat."

 

Schletter Group: 48 MWp Project in Italy
ENCAVIS Acquires Two More Solar Parks In Spain and Surpasses The Planned Expansion
Maximum profitability with KACO advanced technology for complex solar roofs
Enviromena wins contract to re-power three major solar farms ahead of the summer energy peak
New Swansea University Collaboration to Support Sustainable, Locally Manufactured Solar PV
New Swansea University Collaboration to Support Sustainable, Locally Manufactured Solar PV
Next2Sun Builds World's Largest Vertical PV Plant at Frankfurt Airport
DNV Publishes Bankability Study of Solcast Satellite Irradiance Data
Steel company SSAB switches to fossil-free energy in Italy with PV solution from Solnet
janom Investments enters the Croatian solar energy industry by investing in a 30 MW power plant project
Trina Solar Vertex S+ 505W n-type dual-glass modules enter mass production
BayWa r.e. and 3E sign partnership agreement for monitoring & analytics of global PV portfolio
Accelerating Spain's Energy Transformation: LONGi to supply Naturgy with 1 million modules in new deal
NTR announces corporate PPA with Almac Group to buy energy from Murley Wind Farm, Northern Ireland
Oxford PV sets new solar panel efficiency world record
Order Intake for the Construction of Wind Turbines in Turkey
Trilantic Europe acquires stake in AEROCOMPACT Group
Octopus Energy makes solar farm debut in Germany
Austria-based KOGA Energy, a solar EPC solutions provider, has kicked off.
Exus to acquire 625MW New Mexico solar portfolio
Capcora Accompanies SUSI Partners In Raising Senior Debt For a Polish Renewables Portfolio
Qualitas Energy acquires a 96 MW wind energy project pipeline in Germany
Nordex Group receives orders from the UK for approx. 150 MW
Trina Solar gains EPD certification from UL Solutions and EPDItaly for industry leading modules
Mandarin Oriental Hyde Park, London instals innovative solar tech to decarbonise heating
Efficiency First: The Road to Electrification
SCHLETTER Supplies Austria's Largest PV Roof System
E.ON partners with UK renewable heat innovator Naked Energy
Sonnedix signs innovative EUR500 million loan facility to finance construction of its renewable electricity pipeline in Europe and UK
Construction begins on Glennmont and Ørsted’s Borkum Riffgrund 3 offshore wind farm in Germany
ABB shores up reliable power supply at Southeast Asia’s largest floating solar plant
Sonnedix starts construction of 300MW UK solar PV portfolio

×
Search the news archive

To close this popup you can press escape or click the close icon.
Logo
×
Logo
×
Register - Step 1

You may choose to subscribe to the Solar + Power Magazine, the Solar + Power Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in: