NEW YORK — The solar power market in the United States has experienced clear skies over the five years to 2014, according to a report by IBISWorld, propelled by favorable government incentives in the form of renewable portfolio standard (RPS) laws, which require local utilities to generate a percentage of their total energy portfolio from renewable sources, and tax incentives and grants, which encourage investments in solar power. In addition, costs have continued to fall. Due to these trends, industry revenue has grown at an annualized rate of 70 percent to $491.9 million in the five years to 2014, including anticipated growth of 90.3 percent in 2014 alone.

In the next five years to 2019, industry growth is expected to continue, but at a slower rate, says the report. Government support will continue to help the industry compete with other energy sources, at least in the first half of the next five years. State mandates for renewable energy and lower costs will continue to translate into high revenue growth. Solar PV power generation is also anticipated to achieve grid parity during this time period, where the cost of solar-generated electricity is equal to or less than the retail rate of grid power. These trends suggest that the industry will become more viable in the next five years, reducing its dependence on government assistance.