Europe Set to Dominate in Solar Power

Europe is sitting pretty to dominate in the use of solar power. The solar industry is expected to grow up to 150GWp by 2020. According to a report by McKinsey, “Solar power: Darkest before dawn,” the solar industry is entering a period of maturation. Over the next few years, this will lead to more stable and expansive growth for companies that can manage costs while still being innovative.

Germany is the global leader in solar power accounting for more than a third of the world’s photovoltaic capacity. The country is also positioned well for growth as McKinsey cites five key areas of growth: off-grid, residential and commercial in sun-rich areas, isolated grids, peak capacity in growth markets and large-scale power plants. Strategies for success in these areas and others will be topics of discussion during the Intersolar Europe that kicked off on June 11, 2012.

“Those companies who survive the current consolidation wave will experience a bright future. Especially the rooftop segment and downstream business models are expected to drive the industry forward,” said Tobias Rothacher, photovoltaic industry expert at Germany Trade & Invest in Berlin.

Darkest before dawn reports that the industry is suffering from growing pains as demand is expected to increase between 400 to 600 GWp by 2020 even with the reduction or end of tax credits. This upward trend is especially creating opportunities for companies who offer comprehensive design, installation and service packages.

“Germany has supported own consumption of solar power for years. The coming grid parity era is ushering in an era of new business opportunities,” added Rothacher. We expect Germany to continue to be the top business location, as innovations and industry standards are developed here.”

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