Solar energy to be cost competitive with coal and nuclear by 2020: McKinsley

According to a recent report, Solar Energy is set to establish equivalent costs with brown energy sources by 2020. Poised to deepen the market share in clean energy sectors worldwide, solar power’s respective component cost and energy efficiency aspects will drive it towards this milestone sooner than world markets had expected.

Solar Power: Darkest before the Dawn

This is the latest from consultancy firm McKinsley which has published its findings in a report titled ‘Solar Power: Darkest before the Dawn’. The comprehensive analysis runs parallel with certain Bloomberg New Energy Finance data which suggests solar pv (photovoltaics) component costs will continue steady downward trends until 2020. One of the major factors within this view is that no significant technological advancements will be required to continue this progress. Streamlined and efficient fabrication and distribution practices will be the primary vehicles for the goal.

Solar Energy Market Predictions

Historically photovoltaics have been a difficult market to predict accurately; due largely to market silicon prices and changing prices at the end consumer. McKinsley are regarded as one of the most developed consultancy firms in the world however, so it is likely their report will be widely considered as reputable. They describe a lot of the tariff and government support issues plaguing solar energy installation rates as temporary growing pains rather than perpetual difficulties. The market share of solar is set to only increase in comparison with other renewable energy sources.

Stable & Expansive Market Growth

The report lists 2015 as a time when solar energy will begin to experience more expansive and stable growth. All clean energy companies know the need to diversify and work to scale to ensure long term business stability, but the report defines these measures as of utmost importance to photovoltaics companies until that time. The paper went on to highlight the importance clean energy sources will have with developing countries in the coming years. India, China and Brazil are already in the process of expanding into photovoltaics and clean energy in general; so this sentiment echoes global market predictions.

Among the various renewable energy sources continuing growth throughout the decade this ensures that solar energy will continue to be at the forefront of clean energy options. Krister Aanesen who co-authored the report and is a veritable maret expert on photovoltaics finished by saying those who positioned themselves appropriately in the solar energy industry would experience great business opportunities in the years to come.

Written by Jarrah Harburn This article originally appeared on Solar Selections.

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Jarrah Harburn