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True value solar Blog

Solar tipping point

A recent report by firm McKinsey has showed that the $100 billion solar photovoltaic market has reached a tipping point. The report concluded that the yearly economic potential of
solar PV deployment could reach up to 1 million megawatts by 2020.

The report goes on to predict that the cost of installing a commercial scale solar PV will fall by 40 per cent by 2015 which will play the most part in meeting the predicted gigawatts
achievable by 2020, where improvements in technology  and government incentives will only play as a secondary factor in the growth.

The McKinsey report does not deny the boom and bust of the solar PV lifecycle, however it does not mean the solar market is declining. As the solar market has only emerged recently, it is finally reaching maturation, and once reached, the market will be able to accurately meet demand and supply and be able to provide expansive growth, regardless of government subsidies growing.

Therefore the report concludes that the key to continued and sustained growth in the solar PV market primarily is to meet the price competitiveness, whilst continuing to innovate
in new technology.

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