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


Welspun Commissions 52-MW Solar Power Plant in India

Vince Font Leading Indian solar developer Welspun Renewables has commissioned the construction of a massive solar plant in the state of Maharashtra. The planned 52-megawatt (MW) solar plant will be located in the city of Baramati. The...

Regional News from the July/August 2015 Digital Edition of Renewable Energy World

Renewable Energy World Editors EcoFasten Solar announced that it launched a new mounting "Rock-It System" that it would be displaying during Intersolar. Product compliance was determined through testing per UL Subject 2703, which reviews integr...

SkyPower Inks $2.2 Billion Deal for Massive Solar Power Plant in Kenya

Eric Ombok, Bloomberg Kenya’s Energy Ministry and SkyPower Global Ltd. will sign a $2.2 billion agreement on Sunday that paves the way for the Canadian company to develop a 1-gigawatt solar project in East Africa’s biggest economy. The solar pro...

Making a Match: How Solar Companies and Banks Hook Up

Jennifer Runyon The announcements are fairly frequent: SunPower Partners with Admirals Bank for $200 Million Solar Loan Program, Deutsche Bank to Lend $1 Billion for Japanese Solar Projects, Financing Partnerships Drive North Carolina's So...
Jim is Contributing Editor for, 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, ...


Volume 18, Issue 4


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


Tweet the Editors! @megcichon @jennrunyon



Presenting at Infocast's Utility Scale Solar Summit 2015

Oct. 21, 2015 4:30-5:15pm Albie Fong, National Director, Solar Frontier ...

Utility Scale Solar Summit 2015

Oct. 21, 2015 4:30-5:15pm Albie Fong, National Director, Solar Frontier ...

5th Annual Hydro Plant Maintenance

Join maintenance professionals to discuss the challenges in maintenance ...


Behind Every Good Decision

When something about your business isn’t working, you set out to c...

Clean Energy Patents Maintain High Levels in First Quarter, Solar L...

U.S. patents for Clean Energy technologies from the first quarter of 201...

An Overwhelming Paradox

I’m sure we’re all very familiar with the feeling of being o...


Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now