Solar Industry Analysis

The solar industry can be understood by performing a SWOT analysis. A SWOT analysis assesses the strengths, weaknesses, opportunities and threats to a specific business scenario or enterprise.

Strengths

The major strength of the solar industry is that it can provide a sustainable, renewable and environmentally friendly source of energy. This positions solar energy to differentiate itself from traditional, carbon-based energy sources.

Weaknesses

The major weakness of the solar industry is that its product is costly to implement and is difficult to produce high levels of solar power. Solar energy can have difficulty competing with traditional forms of energy on the basis of price.

Opportunities

Because oil, coal and other fossil fuels are a finite resource they will eventually become depleted. As theses resources become depleted they will rise in costs. As this occurs it presents an opportunity for the solar industry to compete on the basis of price, eventually becoming cheaper than fossil fuels.

Threats

Threats to the solar energy industry include other renewable energy sources such as wind power, hydroelectricity and nuclear fission. Additionally, the solar energy industry is threatened by new technologies that are making it possible to obtain oil from new sources such as oil shales and oil sands.

References

• SEIA: About Solar Energy
• Pacific Lutheran University: Solar Energy Industry Analysis
• St. Francis: SWOT Analysis