International.
Solar is finally maturing as a key energy source on the global stage and is expected to reach parity with the grid in 2020, according to a new analysis from Frost & Sullivan.
In addition to green goals, energy independence and distributed energy, a crucial market accelerator has been the definition of the feed-in tariff structure (FIT) for power generation by solar photovoltaic (PV) systems, the study noted.
Together with the dynamics of regulation and incentives, this has reduced the normalized cost of electricity (LCOE) of solar energy. With the highest economies of scale, the cost of solar PV systems for both residential and utility scale solar PV is projected to reach grid parity in 2020 and increase decentralized solar energy uptake.
Frost & Sullivan's analysis finds that market revenue stood at $113.75 million in 2015 and is projected to grow at a compound annual growth rate (CAGR) of 9.5% to reach $179.13 million in 2020. Installed capacity will grow from 50,780 MW to 76,600 MW at a CAGR of 8.6% for the same period.
