Solar power could challenge electricity companies by 2020

Photovoltaic power (PV) could meet up to 12 % of Europe's electricity demand by 2020 if a favourable policy framework were established to support it in the coming years, according to a new study by the European Photovoltaic Industry Association (EPIA).
Photovoltaic solar power could rival other forms of electricity production in most of the EU market (75 %) without subsidies by 2020, the study concludes. In some parts of Europe, notably southern Italy and large parts of Spain, it will already be competitive by next year, it adds.

The study explored different policy scenarios, showing that a business-as-usual scenario will only deliver 4-6 % of electricity from photovoltaic power. But with the right support schemes in place, the industry could make a significant contribution to the EU's sustainable energy strategy by bridging a third of the shortfall still expected to remain in 2020 and helping the block achieve its goal of producing 20 % of its energy from renewables.
The industry insists that it is ready to deliver the necessary cost reductions, but says it will need well-designed support schemes for the next five or so years to increase production volumes.

In the past ten years, PV has had new capacity installed at a higher rate than any other energy source, the study states. EPIA argues that reaching 12 % will not be impossible, but simply in line with previous development.
However, photovoltaic power currently supplies less than 1 % of the EU's electricity needs and would require a substantial boost to reach significant production volumes.

The study argues that the best way to promote PV uptake is feed-in tariffs. This has proved a success in Germany, which is one of the world's leading countries in the field. In order to bring about a paradigm shift on photovoltaics, consumers would see their electricity bills increase by 2.2 % to pay for the tariffs, according to the study.
Moreover, cutting red tape and adapting the grid to integrate large volumes of renewable energy will be necessary, EPIA adds. The study argues that net metering, which allows households to sell their solar energy back to the grids and charge more for peak-time energy, would boost PV's competitiveness.