August 6, 2009

Are rainy days gone for solar?

While some reports indicate that investments in the solar market is shining again, others claimed continued cloudy days because of capital intensive projects and growing overcapacity in some regions (ok, I'll stop the weather talk).

According to Pike Research's new report, solar demand in the US has been improving although financing is still a roadblock.
“As soon as financing picks up, the demand is there,” says industry analyst George Kotzias.“In addition to the increase in subsidies, module prices have dropped by as much as 50% and installed costs have dropped over 30% over the past year,” he adds.

According to the report, weak federal level tax credits and depreciation incentives are not currently enough to encourage sustainable demand growth. Some states and municipalities instead have taken the lead in providing incentives such as upfront rebates and property tax credits, renewable energy credits and even European-style feed-in tariffs.

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