With the global solar energy market in flux and many countries facing economic uncertainty, what are the prospects for solar?
Christopher Sunsong is an analyst at Solarbuzz, a research company that studies the global solar market recently did an analysis of the solar market and reported the following to General Electric Ecomagination:
This market is readjusting and realigning after governments in Western Europe, where about 80 percent of the market is concentrated, cut subsidies to the industry. That has led to a massive oversupply of PV modules and subsequent price cuts, coming off many years of steady growth. There will definitely be consolidation in the industry as everybody gets used to the new situation.
With the lower prices, Sunsong believes creates a price collapse that can have a stimulating effect. It will certainly make the economics more exciting for investors. That is clearly why a number of governments outside of Europe are coming online with solar subsidies and programs that promote the industry. Developing countries outside of Europe like India and China are interested in expanding their capacity, along with Japan and the U.S.
Source: GE Ecomagination
Ernest Beck is a New York-based freelance writer. He focuses on the intersection of business and design, innovation and sustainability.