Market

Fast growth, increased consumption, volatile energy prices, political framework restraints and environmental regulations are driving the development.

Solar energy is one of the world’s fastest growing industries, and the fastest growing energy technology (report: Worldwatch Institute).

Estimated Growth

The photovoltaic solar energy industry is growing with annual growth rates of 50% and more, (45% in 2005, 58% in 2006).

By the end of 2008, the cumulative installed capacity of PV systems around the world had reached 15 GW, compared to 9 GW in 2007. According to EPIA (European Photovoltaic Industry Association), given to the current crisis, high uncertainties over the 2009 market exists. Experts believe the global PV market could reach up to 7 GW in 2009 and 22 GW in 2013, if appropriate policies, such as Feed-in Tariffs, are in place.

The EU Commission estimates the annual growth to be between 26-32% over the next 20 years. The increased use of solar energy will lead to a reduction in CO2 emissions of about 730 million metric tons. Further more, by the year 2020 the solar power industry will have created 2.25 million new jobs.

Growth Factors

There are several factors contributing to this long awaited break-through of solar energy. Most important is the tightening of international agreement regarding CO2 emissions to decelerate the effects of global warming and consequent climatic changes.

National governmental incentive programs with feed-in tariffs for PV installations have made solar power installations cost-effective, and investors worldwide are focusing on this new business opportunity.

The consequent demand for clean energy has intensified scientific research to achieve greater efficiency and conservation of our energy resources.

Governmental Incentives

Incentives exist in numerous markets (including Germany, Japan, USA, Spain, Italy, France, Greece and South Korea) that make solar competitive with grid power prices. The tariffs range from 0,29 to 0,55 euro per kWh over a period of 15–25 years, creating very interesting investment opportunities.