economics of solar power - The McKinsey Quarterly - economics of solar power - Energy, Resources, Materials

Solar energy is becoming more economically attractive as technologies improve and the cost of electricity generated by fossil fuels rises.
By 2020, hundreds of billions of dollars of investment capital will probably boost global solar-generating capacity 20 to 40 times higher than its current level.
As the new sector takes shape, producers of solar components must drive their costs down, utilities must place big bets despite enormous technological uncertainty, and regulators must phase out subsidies with care.
The actions these players take will determine the solar sector’s scale, structure, and performance for years to come.

Exhibit 1: Within three to seven years, solar energy's unsubsidized cost to end users will approach the cost of conventional electricity in a number of markets, including parts of the United States (California and the Southwest), as well as Italy, Japan, and Spain.
Exhibit 2: Installed global solar capacity will grow by roughly 30 to 35 percent a year, from 10 gigawatts today to about 200 gigawatts in 2020.

Efforts to reduce climate change can profoundly affect the valuations of many companies, but executives so far seem largely unaware.

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