Solar energy has taken off in some developed countries with support from pro-solar government policies.

Germany is powering a solar revolution, and has achieved nearly 50% of the world’s total PV market.

Solar power generates just 3% of Germany's energy, but the Government plans to raise the renewable energy sector's contribution to the energy mix to 27 % by 2010 2020.

The European PV Industry Association (EPVIA) forecasts the PV market to grow from 2246 MW capacity in 2007 to 7220 MW by 2012. That’s a five year growth rate of 220%.

But the market would grow even faster if governments adopted the type of policies that have powered Germany into its leading solar position.

EPVIA forecasts that a policy driven market could grow from 2246 MW capacity in 2007 to 10,910 MW by 2012.

That’s a five year growth rate of 386% and would deliver an extra 3,690 in MW of PV solar power.

A growing market would drive down the price of average PV modules as economies of scale kicked in – experts anticipate the average module price of PV will drop from $3.56/W to $2.04/W between 2007 and 2010.

Market expansion will follow the more attractive economic outlook for solar PV.