Deutsche Bank: Solar is a Boom with No Bust

Solar is too big to fail, said Deustche Bank. Sooner than later, it will likely take over electricity markets worldwide.

Four years ago, markets once “heavily dependent on coal for electricity generation” enjoyed a 7:1 advantage over solar, explained Deutsche Bank’s exhaustive report Crossing the Chasm: Solar Grid Parity in a Low Oil Price Era (PDF). With the concurrent cratering of oil prices and solar costs, that ratio could approach 1:1 within two years. Crossing the Chasm predicts solar costs will shave off another 40 percent by 2017, thanks to the much more sensible financing of PV deployment and pooling of assets in yieldcos — like, say, the one between First Solar and SunPower, which Deustche Bank analyst Vishal Shah called “the best strategy” for both companies.