Over the weekend, the New York Times noted that the solar power “craze” is partly responsible for Wall Street’s recent good times. The Times used the example of solar giant SolarCity, which has seen a sevenfold increase in its share price to $59.27 since it went public, but this could just be starters for the US solar industry. An international research team based at North Carolina State University has come up with a simple way to increase the efficiency of organic solar cells by more than 30 percent, leading to lower costs and a much bigger market.
Leading investment house Deutsche Bank has dramatically lifted its demand forecasts for the global solar industry – predicting that 46 gigawatts (GW) of solar PV will be installed across the world in 2014, before jumping by another 25 per cent to 56GW in 2015.
As we have seen in other financial bubbles, speculation leads to the creation of overcapacity and then the bursting of the bubble.