Solar Production Continues to Exceed Demand

Cost of solarToday Greentech Media released their 2010 Global PV Demand Analysis and Forecast which as the title describes was packed with analysis of the development of the solar market over the past year and projections for the future.

The major findings of the report are as follows:

  • Between 2000 and 2009, global PV demand grew at an average annual rate of 51 percent, rising from 170 MW to 7,118 MW;
  • Global manufacturing capacity still greatly exceeds global demand for solar- Meaning lower prices are on the horizon;
  • German PV demand will peak in 2010;
  • Italy will remain the second-largest PV market in 2010;
  • Italy and Japan will be the first major PV markets to reach unsubsidized grid parity: This is driven by high electricity prices and increased demand for renewables. It is thought that both countries will begin to achieve this milestone within the next three years;
  • The United States will be a long-term growth market however, growth will be slower than markets with feed-in tariff markets such as Germany. This steady growth is thought to place the U.S. as the second-largest PV market behind Germany by 2012;
  • Solar module prices will continue to drop through 2011: It is thought that the supply and demand conditions will cause prices to decline a further 19 percent;
  • The global supply/demand imbalance will increase over the next four years: It it estimated that module supply will outpace growth in demand by an average of 26 percent through 2013;
  • Thin film will have captured 30 percent market share by 2013.

If you would like to read more you can find it here.

While this report does indicate that the price of solar modules will continue to decline over the coming years this in itself is not a good reason to delay installing a solar power system (if you have the means right now). The other part of the equation that needs to be considered are the rebates and incentives offered by the government and utilities. In many states these rebates are declining as more and more people go solar and in many instances these declines will be greater than the expected decreases in the cost of solar modules.

If you can install a home solar power system and finance it for less than what you are currently paying to your utility then there is no reason to delay. To find out how much you could save by going solar fill out our free estimate form and qualified solar installers will provide you with tailored, no obligation quotes. You could be paying less for clean energy sooner than you think.

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