Study Forecasts Increasing Demand for Solar Energy
Demand for solar energy products is expected to rise as technological innovations cause the price of photovoltaics to fall, according to a recent study.
Demand for solar energy products is expected to rise as technological innovations cause the price of photovoltaics to fall, according to a recent study.
The study, “Solar Energy Products,” from The Freedonia Group, Inc., an industry market research firm, predicts that demand for photovoltaic modules will more than triple from 2005 levels by 2010 to 531 megawatts, valued at $1.3 billion.
Advances will be driven by the falling price of solar power, which stems from technological innovations, growing economies of scale and a rising level of government tax incentives and rebates at both the state and federal levels, according to the study.
Gains will also be spurred by consumer interest in renewable energy sources and concern about the volatility of oil and other conventional energy prices and supplies. The widespread implementation of net metering programs will also drive growth, as consumers are compensated at retail prices for any excess energy generated that flows onto the grid.
In 2005, the key market for photovoltaic modules (which are composed of a series of cells) was power generation, accounting for 85 percent of demand, according to the study.
The on-grid segment represented the largest share of demand, benefiting from net metering programs implemented by state governments and local utilities, and a system which does not require batteries and supplemental generators.
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