U.S. Government subsidies have been removed, most states do not offer them, and where they are offered, they too are being challenged.
The cost of panels has declined dramatically, largely as a result of an oversupply, and may continue to do so over the foreseeable future.
Chinese panel manufacturers are in consolidation. State owned manufacturers are the likely survivors and the weaker privately owned panel manufacturers will be forced out.
To get local content, foreign solar panel manufacturers are opening plants in the U.S. to become a "domestic supplier". Availability of vendor credit, especially from China, is declining. It is likely that foreign export bank financing will be tougher to source.
Further declining in panel prices in the short-run is likely. As supply is reduced, prices will stabilize, at a minimum, and then modestly increase. Technology is increasing the output of panels and will eventually drive solar panel costs to where they can compete straight up to produce electricity on a cost basis.
Environmental concerns for coal and nuclear power in the long-run will likely lead to increased demand for solar power, which is clean and renewable.
High and increasing cost of fuel for energy production will drive the overall cost to produce electricity higher, which is a positive for solar too.
This offers an opportunity for "solar utilities" to flourish in the coming years.
The real advantage of solar power are its short time to permit, quick and easy construction ability to site solar farms in rural areas, low maintenance, and dependable output will enhance solar as a power source. A solar farm can be permitted, constructed, and producing power in a year or less.
The key missing component is the ability to store power generated during the day for delivery during the night. Advanced batteries are being developed to fill this need.
NOTE: George Livingston, Chairman NAI Realvest, and his energy selection team are focused on providing site selection and advisory sources to solar, waste to energy, and biomass companies.