According to Global Solar Energy Outlook, a new report published by Pike Research, solar power is expected to reach grid parity by 2013, when its costs will be equal to that of traditional energy sources like coal and oil.
Pike predicts that global solar demand will grow at a compound annual growth rate of 24% between now and 2013. A confluence of factors, including a new abundance of polysilicon, government stimuli in response to the global economic crisis and increased cost efficiency of solar panel modules, have come together to change solar from a “supply-constrained” to a “demand-driven” industry.
“Solar prices are plunging quickly, and lower pricing will fuel a surge in demand in 2010 and beyond,” says senior analyst Dave Cavanagh. Cavanagh predicts to see a “significant shakeout amongst solar suppliers in the next two years” as companies face increased pressure due to pricing trends and oversupply of solar modules.