http://money.cnn.com/2013/03/14/news/economy/solar-power/index.html?iid=SF_E_Highlight
According to the article, 2012 was a record year for the solar power industry in spite of bankruptcies and consolidation. One of the main reasons is because of the decline in the price of solar panels, stable tax incentives and better financing options. The price of solar panels has decreased about 60% since the beginning of 2011 due to low prices in silicon (a main ingredient in the panels) and massive manufacturing capacity. This is also the reason that drove many firms in the industry to bankruptcy over the past couple of years. However, it's nothing to worry about because the exact same thing happened to the auto industry in the beginning, when dozens of car makers were driven out of the market due to inefficiency.
It is without any doubt that the solar power industry will keep rising. This is a good sign as we are becoming more and more environmental friendly. One thing to note though is that the cost of solar power is only competitive at the moment when subsidies are generous and the price of electricity is high. However, if we take away those subsidies, the cost for new solar electricity nationwide is still more than twice that of the nation's cheapest power source -- natural gas. So solar power might not be a cheap power alternative after all.
Solar is fine for remote off-grid applications where the resource is abundant and there is ample technical prowess to keep the local system running. But it will not be competitive for many years without active and constant mandates and subsidies from governments.
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