Support for solar energy could spell major shift in energy landscape
There is no shortage of good news concerning solar energy, which suggests that the industry is currently joining a period of prosperity. The number of solar energy projects continues to grow as the world’s governments show more support for the alternative energy. Financial incentives abound for consumers and businesses interested in adopting solar energy, which has only added more momentum to the growth of the industry. A new report from GlobalData, a strategic business intelligence firm, shows that a veritable perfect storm may have formed for the solar energy industry, which could mean rapid and expansive progress throughout the industry.
Falling cost of energy production could make solar trump fossil-fuels
According to the report, the sheer number of solar energy installations is driving down the cost of energy generation. This cost is falling so quickly that by 2017 solar energy is expected to be more affordable than fossil-fuels. This would make solar energy the most affordable form of power, supplying strong competition for other forms of alternative energy and perhaps signaling the end of fossil-fuels.
Industry growth backed by support from the U.S. and China
The report shows that the solar energy industry has grown by over 100% between the years of 2009 and 2011. Much of this growth was powered by the U.S. and China, where solar energy has been gaining a great deal of support from the governments of these countries. Because of this support, solar energy projects have been able to flourish, allowing the price of energy production to drop drastically. The report suggests that this trend will continue into 2017, when solar energy will become more viable than traditional power systems.
Growth expected to persist for the next five years
Solar energy accounts for 14% of the world’s alternative energy capacity, making it one of the largest forms of sustainable power. It is considered to be the fastest growing renewable energy source currently available, overshadowing the growth seen in the wind and hydrogen fuel industries. GlobalData’s report suggests that the solar energy industry will see a compound annual growth rate of 56% over the next five years, as long as support persists.