The major trends in PV technologies, applications and markets show promise for the future of renewable energy. The 30% growth projected for PV shipments in 1998 appears sustainable if current trends in new markets and applications reinforce and accelerate improvements in PV costs and performance. Through established partnerships and programs, R&D continues to focus on improving efficiency of solar energy systems, increasing manufacturing capability, reducing solar energy systems costs, enhancing reliability and flexibility of PV products, and producing innovations in thin-films and other emerging PV technologies. Continued research and market development in the US and other nations will advance quality and performance standards, and reduce the overall price of PV systems, laying the foundation for large-scale market expansion worldwide.