TUESDAY 25 OCTOBER, 2011 |
Solar Power's ROI Higher Than Other Renewable Energy Sources
A recent report from the USA has found return on investment from solar power is higher than any other renewable energy
The report entitled "Global Solar Inverter Markets", released by SBI
, states the payback period for a typical solar PV-based project has
reduced from 7-10 years to 3-5 years currently.
This has also been the
case for home solar power
in some Australian states, where payback time on rooftop solar arrays can be
under 4 years. With electricity prices rapidly increasing, investment in a home solar power system can in some scenarios provide a better return than putting the equivalent money in the bank.
SBI predicts the cost of solar power production will decrease by half every ten years, reaching
$1 a watt by 2020 and as low as $0.50 per watt by 2030. Further reductions after
that time are also possible due to large scale adoption of PV technology and the
ongoing development of low cost production sites in China, Taiwan and other Asian
SBI says cumulative PV installations have grown at a compound annual growth rate
of 35% since 2000, reaching 40 GW globally in 2010; and are estimated to reach 400 GW by 2020.
SBI expects to see a short-term lull in the European Union PV market, mainly due
feed in tariff
rate cuts and some regulatory issues, but this will be offset by installations in North America and
Asia. The research firm believes China is likely to reach the 1 GW cumulative installation mark
during this year.
Global Solar Inverters Markets covers the PV component sector; with a detailed
analysis of PV cells, solar panels, wafers, polysilicon and solar inverters. In
regard to the latter, SBI Energy estimates that the global solar inverter market, currently valued between $5.5- 5.8 billion, will
hit $7.5 billion in 2015. A solar
is a device that convert DC electricity generated by a solar
into AC power; suitable for use by standard home appliances.
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