Solar Power in the US Industry Market Research Report from IBISWorld Has Been Updated

The industry has undergone explosive growth over the past five years; going forward, this trend will continue, albeit at a slower rate. For these reasons, industry research firm IBISWorld has updated a report on the Solar Power industry in its growing industry report collection.

New York, NY (PRWEB) May 05, 2014

The Solar Power industry has experienced clear skies over the five years to 2014, propelled by favorable government incentives in the form of renewable portfolio standard (RPS) laws and tax credits. According to IBISWorld Industry Analyst Darryle Ulama, “RPS legislation, currently implemented in more than 30 states and territories, requires local utilities to generate a percentage of their total energy portfolio from renewable sources.” Meanwhile, increased public support for green energy has led to tax incentives and grants to encourage investments in solar power. Additionally, semiconductor input costs have continued to fall during the period. In light of these trends, industry revenue is expected to grow at an annualized rate of 70.0% to $491.9 million in the five years to 2014, including growth of 90.3% in 2014 alone.

Federal and state government assistance for renewable energy has led to strong growth in solar power. The increase in projects over the past five years exemplifies a triumph for industrial policy in solar power, which historically struggled to compete with established energy sources such as coal and natural gas. Credits, grants and tax exemptions have helped mitigate the high investment costs of solar power generation, encouraging industry activity. Furthermore, a decline in the price of silicon, an essential semiconductor input in solar panels, has lowered the operational costs incurred by industry operators. Falling input costs have accelerated the number of photovoltaic (PV) panel projects and widened profit margins.

In the five years to 2019, industry revenue is expected to increase. Government support will continue to help the industry compete with other energy sources, at least in the first half of the next five years. State mandates for renewable energy power and lower input costs will continue to translate into high revenue growth. “Electricity consumption is expected to pick up in the next five years, and operators are poised to meet the growing demand for cleaner energy,” says Ulama. PV solar power generation is also anticipated to achieve grid parity during this time period, whereby the cost of solar-generated electricity is equal to or less than the retail rate of grid power. These trends suggest that the industry will become more viable in the next five years, lowering its dependence on government assistance.

The Solar Power industry has a low level of concentration. There is currently only one major player, NextEra Energy Inc., with a market share of 12.0%, but this will likely change in the near future. In a climate of high growth, companies are more willing to expand their operations to gain market share, and many companies are finalizing solar projects that will increase their solar-generating capacity. However, industry concentration remains low because of the lack of economies of scope in the industry. While individual solar power facilities are getting larger, there appears to be little movement toward owning facilities across many areas. Over the five years to 2014, market share concentration has increased, albeit marginally, as many players enter the industry to benefit from the growing opportunities and existing operators scale their solar energy production. Market share concentration is expected to continue to increase in the five years to 2019.

For more information, visit IBISWorld's Solar Power in the US industry report page.

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IBISWorld industry Report Key Topics

Companies in the Solar Power industry own and operate solar-power-generating facilities in the form of either photovoltaic panels or solar thermal power stations that make use of mirrors or lenses to concentrate the sun's energy. Operators then sell the energy to downstream customers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation's most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

For the original version on PRWeb visit: http://www.prweb.com/releases/2014/05/prweb11824121.htm