The photovoltaic technology is gaining wide spread fame due to ease of use. Photovoltaic technology is related to solar energy development. It is gaining popularity because it can replace and substitute other expensive energy sources. Photovoltaic refers to the spread of photons on the earth which is then conserved using solar cells embedded in photovoltaic panels.

Reasons of Growth

During the year 2008 when the oil prices started to raise up to $295 per barrel, most of the European countries switched to the alternative fuel source such as solar panels.  The increased demand in the market for photovoltaic solar panels in 2008 contributed greatly towards its growth. The high growth in 2008 was not only due to increased prices but also because of the favorable legislation policies. 

Suddenly in the same year the demand for PV panels decreased in Spain. The main reason was credit crises and capex. However, now in 2010 this market is recovering fast after the American president’s policies to deploy more photovoltaic power plants. The underdeveloped countries of the world which are facing colossal recessions due to purchase of foreign oil every year also require a change. The PV technology is capable of handling all power applications from domestic appliances to industrial units. Though it seems that the technology is expensive but it is far more beneficial than the traditional fossil fuel power plants.

Profit Projections for 2010

Starting from 2008 the photovoltaic industry faced many troughs in their business cycles. There were many reasons for this recession. First of all the technology was expensive. Secondly the big names like Q cells and Solar World faced difficulties in their operations. However today the situation is a little different the photovoltaic market is recovering quickly and moving towards growth again.

The major reason for huge profit margins is that USA has become the biggest demand market for PV panels. The recent US policies to make use of more environments friendly and alternative power sources have led to this immense demand. The aim of the U.S government is to cut down the use of oil and save it for defense purposes. Therefore the search for new and green energy technologies has opened a new horizon of opportunities in this sector. This new emerging market is an open invitation to all the solar equipment manufactures to grab their profit share. The price of this technology is expected to fall in coming years.

The Photovoltaic Price in Market

The PV market has already excelled with the efforts of European countries like Spain, Germany and U.S.A. the net PV capacity has surpassed above 9 GW during 2009.  This has led to the increased production of PV cells not only in Europe but also in Taiwan and china. China alone produces 2GW solar cells annually. In February 2010 the price of electricity using PV panel is $4.27 per watt. Today the price of photovoltaic cells of different companies is different. The General electric solar panel costs $ 228 to $385. This trend would decline with more competition.

The solar energy can help us overcome the issue of global warming and high fuel costs. Moreover it can bring green environment for us in near future. Almost all the countries in the world are experimenting with PV technology. Hence it is expected that 2010 would bring a lot more development and progress in this field. The future of the PV technology is bright because if we want to survive, we need to conserve oil and gas and focus more on other energy sources.. The solar light and heat is free for all and carries no carbon emissions during the energy transformation process. Therefore the price of PV technology would fall in the coming years with decrease in conventional sources and increased competition.

 solarpowernotes.com