SOLAR GROWING BUT MORE SLOWLY

Solar Photovoltaic Demand in 2012 Falls Short of 30 GW Mark…Annual growth rate declines to ten-year low as industry prepares for emerging markets to drive new opportunities

February 21, 2013 (SolarBuzz)

“Solar photovoltaic (PV) demand for 2012 reached just 29.0 GW, an increase of only 5%...[from 2011’s] 27.7 GW…This is the first time in a decade that year-over-year market growth in the PV industry has been less than 10%...[Despite declining incentives], Europe remained the largest regional market with 16.48 GW of PV demand, almost 60% of global demand last year, but less than [its] 68% of the global demand in 2011 and 82% in 2010. The second largest region for PV demand was Asia with 8.69 GW, stimulated by the growth of the Chinese end-market during the second half of 2012.

“PV demand from the Americas is now segmented across North America (US and Canada), and the Latin America and Caribbean regions. The Americas provided 13% of global PV demand in 2012, or 3.68 GW…California provided more than one-third of all PV demand from the entire Americas region during 2012.”

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“Despite falling short…PV demand during 2012 set another annual record…[T]he 29.0 GW of demand added during 2012 is nearly 30% of all installed PV capacity… at the end of 2012…[But for] supply and demand to have been balanced during 2012, end-market demand should have approached the 45 GW level…[The 50% shortfall] reflects the lack of demand elasticity that characterizes the PV industry today…[and explains why even] companies that gained market-share in 2012 still ended up reporting significant operating losses…

“…Solarbuzz forecasts that the PV industry will see rapid globalization during 2013, incorporating growth from new regions including Latin America, the Middle East and Africa, and emerging Asian markets. However, uncertainties still exist in many of these regions that will impact on the rate of adoption of renewables and exactly how much solar PV will be added during 2013…”

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