This report by Arthur D. Little discusses the current state of the renewable energy industry. It highlights two key realities: despite significant installations of renewable energy infrastructure, companies in the industry are facing tough times. The report notes that large scale commercial deployment of renewable energy is now a reality, with hydro and geothermal power well established and wind and solar capacity continuing to grow. However, the falling cost of solar power is disrupting the established electricity generation industry and posing challenges for companies in the renewable energy sector. The report concludes by emphasizing the need for companies to focus on profitability in order to succeed in this rapidly changing industry.