UK PV DEMAND POISED TO JUMP

PV Supply Chain Prepares for Q1'13 Demand Surge in the UK, According to NPD Solarbuzz; Strong Ground-Mount Demand Ahead of April 2013 UK Tariff Changes to Provide Opportunities for Low-Cost PV Module, Inverter and Racking Suppliers

December 19, 2012 (SolarBuzz)

“Suppliers of solar photovoltaic (PV) modules and balance-of-systems components are preparing for a potential Q1’13 revenue windfall in the UK market. The windfall will be stimulated by anticipated downward revisions to Renewable Obligation Certificate (ROC) levels beginning in April 2013…[and a shift to] megawatt-scale ground-mount installations… to beat the end-of-March cutoff…

“A significant pipeline of hundreds of megawatts of ground-mount applications accumulated in 2012, and successful projects delayed component purchases as global PV prices continued to fall. In what is expected to be a frantic rush for the lowest-priced off-the-shelf components, Asian module, inverter, and racking suppliers are now targeting further market share gains within the UK.”

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“Cumulative PV demand in the UK will exceed 1.6 GW by the end of 2012, with more than 94% of this demand installed during the past two years. This growth rate has elevated the UK to a top-10 global PV market in 2011 and 2012, and it has ensured that the UK is included in the leading PV suppliers’ global end-market strategies.

“Moreover, the UK has a lower financial risk assigned to investments (compared to other legacy PV-rich countries within Europe), and many PV component suppliers are now planning long-term strategies based on sustained UK PV industry growth…As the UK PV market transitions from an emerging high-growth opportunity to a more mature and stable end-market, PV module and balance-of-systems suppliers have to adjust supply strategies to align with the leading downstream installers and project developers…”

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