October 26, 2011
As small renewable energy systems are increasingly deployed at the sub-utility scale, distributed solar photovoltaic (PV) systems will continue to be the leading form of renewable distributed energy generation (RDEG) installations. Solar PV capacity was added in more than 100 countries during 2010, and the distributed solar PV market is dominated by residential and commercial grid-connected PV systems as the installed price of solar energy continues to fall and end-user demand rises. According to a new report from Pike Research, a variety of market conditions will continue to drive growth in the worldwide distributed solar energy market, which the cleantech market intelligence firm forecasts will increase from approximately $66 billion in 2010 to more than $154 billion annually by 2015, a compound annual growth rate (CAGR) of 18%. During that period, the firm anticipates that total installed capacity of distributed PV will rise from 9.5 gigawatts (GW) to more than 15 GW.
“Consumer and commercial demand for distributed solar systems is growing as the cost of PV modules has continued its steady descent,” says senior analyst Peter Asmus. “Combined with innovative financing and leasing options, third-party and utility ownership models, and highly-effective feed-in-tariff programs, solar PV is expanding faster than most expected.”
Asmus adds that demand for such systems is concentrated in regions with favorable financial incentives, including Germany, Italy, France, the Czech Republic, the United States (led by California), and Canada (led by Ontario). Pike Research’s analysis indicates that Europe will continue to be the largest regional market for distributed solar PV over the next several years, but China and India’s growing economies and high percentages of population without access to reliable electricity represent large market opportunities.
“Today’s solar PV market is all about cost,” says Asmus, “which is good for consumers and installers, but brutal for manufacturers. We expect that costs will continue their rapid decline as Chinese crystalline silicon manufacturers gain market share and efficiency continues to increase for thin-film technologies.”
Pike Research’s report, “Distributed Solar Energy Generation”, analyzes the current status of, along with the future outlook for, the global market for distributed solar photovoltaics. The study includes an assessment of global trends, cost analysis, installation and pricing forecasts, market sizing, and an examination of the competitive landscape of solar PV manufacturers. An Executive Summary of the report is available for free download on the firm’s website.
Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets. The company’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. For more information, visit www.pikeresearch.com or call +1.303.997.7609.