Report highlights growing costs associated with solar energyNovember 21, 2013
Solar energy technologies could become costlier in 2014
GTM Research, a leading market research firm, has released its “Global PV Pricing Outlook 2014” report. The report highlights the trends that are emerging in the global solar energy market, noting that prices for photovoltaic modules are likely to increase in 2014. The cost of solar energy has been on the decline in recent years, largely due to the inundation of new and low-cost photovoltaic modules into the global market. The gratuity of supply and the affordability of photovoltaic modules boosted the adoption of solar energy in many parts of the world.
Global supply chain is stabilizing
The report notes that the global supply chain for photovoltaic modules is beginning to stabilize. Trade conflicts and the failing of large photovoltaic manufacturers are two of the reasons behind the stabilization of the supply chain. Trade conflicts, in particular, have lead to a decrease in the production of photovoltaic modules coming from Asia. As low-cost modules become scarcer, the cost of these solar energy components are expected to increase.
9% increase in the price of photovoltaic modules predicted
The report predicts that the cost of photovoltaic modules will increase by 9% globally in 2014. Both China and Japan are expected to remain top producers of photovoltaic technologies, but prices for solar energy systems throughout Asia are expected to grow more quickly than in other parts of the world. Notably, however, this trend is expected to be restricted to 2014. The report suggests that the cost of photovoltaic modules will continue to decrease in 2015 and beyond.
Solar energy likely to remain a popular form of clean power
Solar energy has become one of the most popular forms of renewable power in the world. Rising costs of photovoltaic technology may slow the adoption of solar energy, especially in developing countries. Nevertheless, many countries have ambitious plans when it comes to solar energy and marginal increases in the cost of photovoltaic modules may not be enough to derail these plans.