Solar Power Is Rising For Lower Costs

Recognition of solar demand requires a framework that consolidates local regulatory dynamics, installation costs and operating situations into a global map of specific requirements and variations on the ground.
Morgan Stanley Blue Papers, a good of our Research Division, involve collaboration from analysts, economists, and strategists across the globe and discuss long-term, structural business changes that are reshaping the fundamentals of whole economies and industries around the world.

The cost of producing electricity from the sun can compete with conventional sources of power in some key markets. Add to this equalization breakthrough advances in battery technology, and sustainable, clean and dependable solar power can frequently become a practical, cost-effective way to reach the ever-growing global demand for more energy.

Learning Solar Models

Knowing that increased potential requires a nuanced model of solar energy’s fragmentation. The market division naturally favors sun-drenched regions with the less volatile weather, but over the years, the biggest key to growth has been regulatory and financial incentives, such as favorable tax policies. Building a structure that incorporates local organizational dynamics, installation costs, and operating conditions into a global map of specific requirements and variations on the ground can shed light on sustainability trends, energy policies and markets, and investment plans.

The call for solar power is expected to spread by an average of 47 gigawatts per year from 2014 through 2020. The lion’s percentage of that, 39 GW a year is attributable to six markets: the U.S., Europe, China, Japan, India and Brazil. This same organization saw demand grow by 36 GW in 2013, while globally, demand increased by 40 GW.

Solar Trends

China is predetermined to make up 27% of that demand, not a surprise given the government’s generous backing for the solar industry in recent years. The country’s unprecedented rate of economic maturity over the past two decades has come at a hefty price to its environment. Ironically, China’s contemporary focus on pollution and emissions could reduce its solar industry. “Our projected solar demand in China is below industry levels due to our view that the Chinese government will seek to grow solar at similar rates to nuclear and wind to minimize the cost of achieving emission reduction goals,” states Simon Lee, head of Morgan Stanley’s Asia Pacific utilities investigation team.

Certainly, the factors that affect solar power increase remain in flux from nation to nation. For instance, Japan is currently reviewing its solar subsidies, with the potential downside for solar, while the limited availability of suitable land for a solar generation could curb growth in India. In Europe, a slowdown in Germany is expected to offset the solar increase in other countries in the area.

US interest for solar power is a bright spot. “We are relatively bullish on solar demand growth in the US,” states Stephen Byrd, head of North American investigation for the power and utilities and clean energy industries. He indicates strong and improving rooftop solar economics and the likely extension of key tax breaks. “In the long term, we believe solar power will be economic in some US states without any form of subsidy,” Byrd says.

Curious about solar hard costs vs. soft costs near you, and how that might affect your own solar panel pricing? We here at HahaSmart you will have a look at what we can offer you on the cost of solar panels and cost of solar installations. We will strive to find you the best prices available. Follow the solar experts. Try our price checker tool. It tells you how much solar power you need and how much you can save on your energy bills each month. Please visit our solar blog to find out more about the benefits of going solar.