The world market size for solar panels is projected to increase more than seven times by 2021. A total of $24.2 billion in solar panels were sold in 2014 and this number is expected to reach $180.7 billion by 2021. This would be an incredible seven-fold increase over seven years.
This report, by way of marketwatch.com, details a growth in the solar power industry due to numerous reasons –
- Government support has undoubtedly been key in helping to jump start the solar power industry. Federal and state subsidies have helped bring down the costs associated with relatively expensive solar technology. In many parts of the world, solar power is now cheap enough to grow without subsidies.
- As solar technology production improved and streamlined, costs have come down dramatically. Economies of scale is certainly part of this story. World leaders in power production – namely China and the U.S. – will soon be able to produce solar power at the utility scale cheaper than the cost of coal. As it surpasses grid parity, the implementation of solar power will expand rapidly.
- Last, but certainly not least, continued improvements in solar technology will further increase the pace of adoption. Solar cell efficiency seems to increase every year with stories of major breakthroughs commonplace in the news.
Word continues to spread about the affordability of solar power at all scales. This idea of scalability is one of solar’s strong points. Solar will continue to grow because it can be used at the very small scale all the way to large utility-level applications.
Solar will continue to bring affordable power to residents of third world nations. A single solar panel can bring substantial power to a home that had no prior access to electricity.
Homeowners in first world nations, of all class categories, will be increasingly switching to solar power because it saves them money. In many parts of America, this opportunity already exists.
When considering how very large the total electricity market is, the fact that the solar panel market is predicted to grow to a size seven times its current one is actually quite realistic.
The complete transition to sources of renewable energy will be something measured in trillions of dollars, not billions. This is simply the size of the energy industry. Solar photovoltaics (solar panels) represents only one subset of solar power, and solar is only one part of the renewable energy picture. The point here is that there is still considerable room for growth as we have merely just begun to make the transition to a world that is powered by renewable energy.
Solar power will increasingly be sought after simply for economic reasons. We can all look forward to a cleaner and more prosperous world powered by renewables.