Solar power has high return on investment, report says

According to a report by SBI Energy, the return on investment for solar power is better than for any other source of renewable energy, thanks to big technological improvements expected to drive down costs. The report said the cost of solar energy is expected to be $1 per watt by 2020, with the typical payback period down to three to five years instead of seven to 10 years.

The "Global Solar Inverters Markets" report by SBI said the cost of large solar power will decrease by half about every 10 years. Solar energy could get as low as $0.50 per watt by 2030, according to SBI, with the widespread adoption of photovoltaic inverters and an increase in low cost production by Asian markets.

"During 2011-2012, we expect a short-term lull in the European Union PV market, primarily due to FiT rate cuts and regulations on farm land usage for ground mount installations," stated Arun Kumar, SBI Energy analyst and author of the report. "But this will be offset by installations in the high growth markets of North America and Asia, and China in particular."

Energy Matters' website said the payback period for solar panel arrays in Australia has also become more attractive, with the ability to get money back from a solar power investment within four years. The website said investing in home solar power can be better than investing money in the bank in some situations.

Author: Danny Vo

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Posted in: Solar Trends

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