Solar industry-related exchange traded funds are seeing clearer skies ahead as solar electricity costs fall below the average electricity-bill prices across the majority of U.S. states.
According to Deutsche Bank, solar electricity is on track to be as cheap or cheaper than the average utilities electricity-bill for 47 U.S. states in 2016, reports Tom Randall for Bloomberg.
While the projections factor in a 30% tax credit on system costs, which are set to expire in 2016, Deutsche Bank calculates that even if tax credits dip 10%, solar electricity costs will still reach parity with conventional electricity across 36 states.
As technologies improve and financing become affordable, solar photovoltaic panels are becoming more mainstream and prices will continue decline. Since the photovoltaic panels are a technology, technological advances will help increase efficiencies, which will help depress costs over time.
For instance, solar panel electricity costs have reached grid parity in 10 states that generate 90% of the U.S. solar electricity production. Deutsche Bank analyst Vishal Shaw believes that in these states, installed capacity growth is expected to jump sixfold over the next three to four years.
Shaw projects that both U.S residential and commercial markets will expand over 30% year-over-year in 2015, despite a slowdown over the third quarter this year, reports Christian Roselund for pv magazine.