In developed markets, increasing solar installations means the power grid sees declining demand for daytime power, dinging the "sweet spot" for selling electricity in competitive markets, Bernstein said in a note Monday. Distribution utilities, which recover the high costs of their infrastructure by volume-based charges, also take a hit as they lose their natural monopoly, the report said.
But within Asia, it's a completely different story, Bernstein said.
"Solar adoption in developing markets improves grid stability, lowers reliance on imported fuel, acts as a hedge against rising energy costs, and improves the environment. It is an unambiguous positive," it said.