The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

Analyst: Grid-Parity Era Now Underway for Global Solar Markets

The global solar industry is in the midst of another "inflection point" that sets the stage for "the beginning of the grid parity era," where solar is at equal cost or cheaper than traditional energy sources, according to a new report from Deutsche Bank. The report says that the number of markets where solar is at grid parity will double over the next 3-5 years.

Looking out over the next year and a half, Deutsche Bank analyst Vishal Shah sees the solar sector entering a "third growth phase" led by distributed solar as leasing models become more mainstream and new policies in international markets. "We expect this to change and expect sustainable policies to drive grid parity growth over the next 5-10 years," he writes.

For the moment, solar energy demand is being driven by "sustainable" markets, with Japan leading the pack at an estimated 7 GW annual demand. China, which plans to add 10 GW of solar capacity this year alone, only added "in the 2-3 GW range" during 1H13, Shah says -- which would suggest a vast expansion is coming in the second half of the year.

Here's how Deutsche Bank sees the shift occurring over the 2012-2014 period, in solar demand from "sustainable" and "unsustainable" markets. Sustainable is defined as U.S., China, and rest of world, with "unsustainable" meaning many European regions.

Credit: Deutsche Bank

Emerging markets are likely to adopt unsubsidized policy models to promote solar growth, especially if new low-cost capital becomes available in concert with policy support to reduce costs, Shah asserts. "Solar is currently competitive without subsidies in 10+ major markets globally, and has the potential to achieve competitiveness in 10-20 additional markets over the next 3 years." He points to parts of Southern Italy that are incorporating net-metering and self-consumption, and where multi-MW projects are being built in the South of Rome for €0.90/W and solar electricity costs approaching €80/MWh. Markets in India and Africa are also seeing solar as cheaper than diesel-based electricity generation, with solar project bids in India at 12 c/kWh vs. 20c/kWh for diesel, he points out.

Out of 25 countries analyzed, 11 are at or below grid parity for residential solar, according to Shah. Assumptions include a 5-kW DC residential rooftop system and traditional string inverter, 0.70 production decrease annually, 80 percent DC-AC efficiency conversion, and assumptions of component costs adding up to $1.93-$2.20/W, plus certain debt levels and O&M costs. Here's an example of what the bank sees in some North American areas; similarly there are several areas in countries/regions in Asia, Europe, Africa, and the Middle East where solar is at LCOE grid-parity or better.

Credit: Deutsche Bank, citing BLS, Ontario Energy Board, Mexican Ministry of Energy, Chile Energy Group, Argentinean Secretary of Energy, and NASA

Untitled Document

RELATED ARTICLES

Sunrise in Pakistan as the Country Delves into Solar PV

Robert Harker Pakistan has joined the list of countries that are exploring solar power as a means to bridge critical energy generat...

Global Renewable Energy Roundup: China, Kenya, Turkey, India Seeking More Renewables

Bloomberg News Editors China is being encouraged by three industry groups to double the nation’s solar-power goal for 2020 to make up for sh...

Why Smarter Grids Demand Smarter Communications Networks

Mark Madden

Historically, utility networks and communications networks have had little in common.

The Importance of “Switching Costs” to the US Residential Solar Industry

Paula Mints The DoE and numerous organizations and governments globally are focused on driving down the cost of solar convinced t...

PRESS RELEASES

20 days to GRC Annual Meeting & GEA Geothermal Energy Expo

The Geothermal Resources Council (GRC) has announced that it is only 20 days to go to t...

Canadian Solar Announces Partnership in 200 MW Tranquility Solar Power Project

Recurrent Energy signed an agreement with Southern Power to partner on the Tranquility ...

AWS Truepower Announces Major Expansion of its Due Diligence Team in Response to Growing Market Demand

AWS Truepower, an international leader in wind and solar energy consulting and engineer...

Array Technologies’ DuraTrack HZ v3 Continues to (R)evolutionize at SPI

Array Technologies, Inc. (ATI) prepares to showcase its recently launched tracking syst...

FEATURED BLOGS

How To Get People To Do Stuff

It’s no secret that psychology and sales go hand in hand. If you understand the principles of human psychology ...

Get In The Groove

When we talk about strategies for boosting productivity, we often overlook the fact certain projects lend themselves ...

Transitioning to Net-Zero Living

Judith and Jeffrey adore living in Belfast, Maine – a quaint harbor town of Belfast, Maine. They previously res...

The True Cost of Electric Vehicles in Australia

In order to avoid increased congestion, further greenhouse warming and lessen Australia’s reliance on imported ...

FINANCIAL NEWS

Jim is Contributing Editor for RenewableEnergyWorld.com, covering the solar and wind beats. He previously was associate editor for Solid State Technology and Photovoltaics World, and has covered semiconductor manufacturing and related industries, ...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 4
1507REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @jennrunyon

FEATURED PARTNERS



EVENTS

Intersolar North America 2016

Exhibition: July 12 - 14, 2016; Conference: July 11 - 13, 2016 Intersola...

Intersolar South America 2015

Exhibition and Conference: September 1-3, 2015 Intersolar South America ...

Intersolar Europe 2016

Exhibition: June 22-24, 2016; Conference: June 21-22, 2016 Intersolar Eu...

COMPANY BLOGS

Less Is More

When you’re giving a presentation, one of the easiest things to do...

Captivology

One of the biggest challenges we face as efficiency sales professionals ...

How To Optimize Your Meeting Schedule

Do you spend more time in meetings than you do actually working? While m...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS