Solar financing solutions have allowed the solar market to grow at a record rate in recent years. By 2020, it is projected that solar developers will spend more than $134 billion on solar energy systems worldwide. A report done by Navigant Research on the Solar PV Market, predicts that from 2013-2020, 438 gigawatts (GW) of solar will be installed. Therefore, industry experts estimate that by the end of 2020, solar photovoltaic (PV) will be cost-competitive with retail electricity prices, thus allowing for solar energy costs to reach grid parity. According to the Solar PV Market report, grid parity is targeted to be reached in 2017, about a year after most solar subsidies are planned to come to an end.
The United States’ Solar Industry recently celebrated a new PV milestone; more than 10 GW of PV installed nationwide. The United States is the fourth country to hit this solar capacity, following behind Germany, Italy and China. The solar industry in the United States is currently experiencing significant growth, with a compounded growth rate of over 50% since 2007, according to a NPD Solarbuzz report.
In the first two quarters of 2013, more than 1.8 GW of solar was installed. Solar installations began to increase as the price per watt met a significant decrease. From 2011, prices per watt (for solar installations) have dropped from about $6 per watt to $3 per watt for commercial and utility installations. Industry experts predict there will be an 80% increase in solar PV installations over the next 18 months, therefore surpassing 17 GW by the end of 2014. As a solar financing company, Sustainable Capital Finance will continue to play a major role in financing commercial solar projects to help the US reach its installation goals.