We are witnessing a change in market conditions for solar, for both manufacturers and project developers. The technology's prospects are strengthening as demand picks up, after a period of prolonged instability in the sector. We highlight a number of key factors that are prompting this rise in demand, primarily a reduction in costs which is making solar power progressively more cost competitive with conventional sources, and technology gains which is boosting the reliability and feasibility of the resource.
We expect solar power to become an increasingly important global resource, particularly for developing countries or those countries without domestic hydrocarbon fuel sources to exploit.
The global solar power industry has expanded rapidly over the last decade, with installed global solar photovoltaic (PV) capacity surging from less than 300MW in 2000 to over 37,000MW in 2013. Despite this impressive growth - witnessed across both PV and concentrated solar power (CSP) technology - the solar sector's rapid expansion has not been without its difficulties. The industry has faced some sizeable hurdles over the last five years, with policy instability and economic headwinds negatively effecting demand across the more mature solar markets.