The market for renewable distributed energy generation (RDEG) grew at a fast clip in 2008, and is expected to continue seeing strong growth in coming years, according to a new report from Pike Research.
The report finds that global revenues for sub-utility scale RDEG rose by 76 percent to $29.9 billion last year. It further adds the market is likely to more than double by 2013, reaching a total of $60.6 billion.
“Renewable distributed energy generation is a sector dominated by small solar energy installations,” said analyst David Link. “Solar represents approximately 98 percent of the world market, with small wind power and stationary fuel cells each accounting for about 1 percent, a mix that we expect to remain constant during the next five years.”
While RDEG technologies in most countries with established systems still rely heavily on government subsidies, that dependence is expected to wane as installation prices decline, according to the report. The study predicts those costs will drop by an annual compound rate of -6 percent between now and 2013.
“Dependence on solar energy subsidies will taper off in Europe during the next three to five years, though we expect that horizon to be somewhat further in the US, approximately five to 10 years away,” Link said.