THE WORLD’S SOLAR INSTALLS

Solar Installations Rise in Second Half—but Module Revenue Growth Stalls
Stefan de Haan, August 4, 2011 (IHS iSuppli)

"Despite a recovery in global solar installations in the second half of the year, plunging prices will result in zero revenue growth for the photovoltaic (PV) module business in 2011, according to research from the IHS iSuppli Photovoltaic Service…

"The first six months of 2011 saw 6.6 gigawatts (GW) worth of PV installations worldwide, down 4 percent from 6.8GW during the same period in 2010. Global installations are expected to accelerate to 14.7GW in the second half of 2011. For the entire year, installations will amount to 21.2GW, up 21 percent from 17.6GW in 2010…"

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"The weakness in the first half was primarily driven by developments in the world’s two largest solar markets…In Germany, PV module prices were too high to attract investments…until the beginning of May…[when a price collapse] stimulated demand…[M]any investors still [are] waiting for further reductions…[I] n Italy, turmoil associated with the implementation of the 4th Conto Energia—the country’s new energy policy—caused uncertainty and discouraged investors…

"…The situation has stabilized now in both countries…Conditions in the second half of 2011 appear to be positive…[E]nd-market demand will reach another all-time high this year, industry wide module revenues, which amounted to $34.6 billion in 2010, will not change significantly in 2011…[but] another round of price drops [is] projected for the first quarter of 2012…Capital-intensive expansions will meet decelerating end markets and declining revenues…[This could] reshape the competitive landscape."