According to a new study, an increasing number of people in different countries are beginning to understand the importance of solar energy.

Applied Materials, which is a leader in solar photovoltaic (PV) manufacturing equipment, released its fourth annual solar energy survey hat measures consumers' understanding and awareness of solar energy. It is believed that by 2012, about 98 per cent of the world's population will have either solar grid parity or cost-competitive solar energy power.

The company conducted the survey in four countries including China, India, Japan and the United States. The countries have the maximum potential for growth in the use of solar power in the coming years. Many consumers were not clear about cost and adoption rates of solar technology, which is the greatest challenge for the industry globally.

About five percent of the respondents said that solar energy is in-fact cheaper than other sources of energy. An majority respondents, about 68 per cent in India believed that the solar energy is cheaper than other sources of energy.

Charlie Gay, president of Applied Materials' Solar division said, "Solar panels now cost less than Rs 56 per watt, which means more than 100 countries have achieved grid parity. We have witnessed an explosion in global solar PV installations in the past year due to the accelerated rate of cost reductions in the supply chain."

He also said that the change has brought down the cost and a focus on innovation will further drive down costs for the energy.