McKinsey is predicting a successful future for the American solar power industry. With sharply declining costs and growing interest from businesses to go green, solar is poised to continue to grow and even disrupt the U.S. energy market.
In a McKinsey Quarterly article, analysts David Frankel, Kenneth Ostrowski and Dickon Pinner argue that the economics of solar power will continue to improve for customers. The price of installing rooftop solar PV systems has plummeted in recent years and is predicted to continue to fall. In the meanwhile, costs associated with installation, service and maintenance will also become cheaper. McKinsey predicts that the overall costs to consumers are poised to fall by 30 per cent by 2020.
As solar power becomes more economic, it will become more interesting to businesses. For instance, Tesla Motors is already cooperating with SolarCity to develop battery storage coupled with solar. Such unique forms of cooperation will lead to better pricing models, lower costs and improved relationships with the customer.
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