2014

Affordability of Solar Photovoltaic Systems Accelerate their Uptake, Finds Frost & Sullivan High installation rates have not translated to higher revenue due to falling sale price of solar modules

MOUNTAIN VIEW, Calif., Jan. 15, 2013 /PRNewswire/ -- Solar photovoltaic (PV) will hold its spot as the fastest growing technology in the U.S. energy industry for the next four years. The prices of solar modules have been in a free fall since 2008, accelerating PV systems' commercialization, while encouraging the development of new financing models for the residential sector.

New analysis from Frost & Sullivan's (http://www.energy.frost.com) Analysis of the U.S. Residential Solar Power Market research finds that the market earned revenues of more than $1.73 billion in 2011 and estimates this to reach $3.04 billion in 2016. The cumulative PV solar installations in the United States reached 4,450, which generated 1,855 megawatts (MW) of solar power in 2011. The residential segment accounted for 15.2 percent, or 282 MW, of the annual installations during 2011, and is projected to grow at a compound annual growth rate of 11.9 percent from 2011 to 2016.

If you are interested in more information on this research, please send an email to Britni Myers, Corporate Communications, at britni.myers@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Prices decreased by almost 50.0 percent since 2008 on the back of the economic downturn, the resulting lower demand for solar energy, and an increased supply of polysilicon. The prices will continue to decline – albeit, at a lower rate – in the next four years, due to economies of scale and technological improvements, making solar energy more affordable to residential customers.

"New financing methods, such as solar lease programs and power purchase agreements, are diminishing the main barriers to solar system installations," said Frost & Sullivan Senior Industry Analyst Georgina Benedetti. "These barriers include high up-front costs and complex installation and maintenance."

Due to PV systems' high capital, it could be almost 20 years before consumers recover the installation costs through solar electricity savings. The market also experienced significant supply-demand imbalance throughout the value chain in 2011. Most solar module manufacturers reduced prices, decreased margins, and, in some cases, closed some manufacturing facilities. Further, expiration of the 1603 grant program is expected to affect new system installations, especially beyond March 2013.

PV module suppliers could increase the uptake of their products in the residential sector by providing a one-stop shop for all solutions – from engineering design to installation and maintenance to government grant paperwork.

"In the last two years, the expanded manufacturing capacity in the solar industry, in combination with technological improvements, has lowered the wholesale module prices, making solar panels reasonably priced," noted Benedetti. "Moreover, the escalating competition from low-cost Chinese companies is compelling U.S. manufacturers to focus on improving quality and efficiency, while simultaneously reducing costs, to stay afloat."

Analysis of the U.S. Residential Solar Power Market is part of the Energy & Environment Growth Partnership Services program, which also includes: Analysis of the U.S. Residential Solar Power Market and Annual Global Power & Energy Outlook 2012.  All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

Connect with Frost & Sullivan on social media, including Twitter, Facebook, SlideShare, and LinkedIn, for the latest news and updates.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

Join Us:           Join our community

Subscribe:       Newsletter on "the next big thing"

Register:         Gain access to visionary innovation

Analysis of the U.S. Residential Solar Power Market

NB2E-14

Contact:
Britni Myers
Corporate Communications – North America
P: 210.477.8481
F: 210.348.1003
E: britni.myers@frost.com
Twitter: @Frost_Sullivan
Facebook: Frost & Sullivan

SOURCE Frost & Sullivan



RELATED LINKS
http://www.frost.com

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.