If you remember anything from your first economics class, it probably has something to do with supply and demand. The more abundant a product, the lower the price drops. In the case of rapidly growing technologies like solar power, a plummeting price tag means an increase in demand, illustrating the economic principles perfectly. Large-scale solar – the avenues that bring sun energy to utility company grids – has seen such substantial advancements recently that solar energy is now at near wholesale price parity with other sources of grid power in the three biggest markets on earth. According to industry experts, things could heat up even more in the future of solar power.

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SunPower, one of the biggest solar manufacturers in America, estimates that solar can hold its own in the market, even if the Investment Tax Credit (ITC) is removed in 2017 when it is currently set to expire. Certain presidential candidates say they won’t ditch the tax credit and may even increase it, as a way to encourage even more American citizens and business owners to turn to solar power. There have been a lot of recent programs announced to get solar panels on more rooftops in America, which can help people cut their utility bills while feeding excess solar energy back into the grid. That said, most of the grid-bound solar energy in the States comes from massive solar farms, not individually-owned solar panels.

Related: Solar energy reaches grid parity in India and Italy

Outside of the United States, India and China round out the top three solar power markets on the planet. In those two countries, the prices of solar are reflecting what is happening in America. A recent Deutsche Bank report indicates that solar prices in India are very close to achieving grid parity, and that solar investments will surpass those in coal within just a few years. In China, the drive for cleaner air is inspiring officials to lift the 100GW solar target for 2020. Deutsche Bank expects China to install around 120GW within that time frame.

Via Clean Technica

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