Large-scale solar power is projected to grow by double digits globally over the next two years, according to a new report from the investment bank Goldman Sachs. The expansion will be driven by utilities in the United States, Europe, the Middle East, and China, Reuters reported.
Goldman Sachs estimated that utility-scale solar capacity will reach 108 gigawatts (GW) globally in 2019, an increase of 12 percent over last year. It could grow another 10 percent in 2020, hitting 119 GW, and reach 135 GW by 2022. When combined with residential and community installations, global solar capacity is projected to hit 600 GW within the next two years.
“We expect the combination of lower costs for solar and favorable policy support providing a multi-year runway for utility-scale to drive meaningful upside to the market,” Goldman Sachs said in a research note.
The plummeting costs of solar panels have been the primary driver of the industry’s rapid growth in recent years, with prices dropping from around $70 per watt of electricity in 1980 to $0.36 per watt today.