San Francisco, CA (PRWEB) November 14, 2011
A projected Q/Q rise of 22% in the Q4?11 European photovoltaic market place is supplying a welcome temporary boost for downstream solar businesses. Nevertheless, this growth rate nonetheless leaves important corporate challenges in the management of the tumultuous slowdown this year in the globe?s largest regional photovoltaic market. The downstream challenge in 2012 will be effective management of a new pricing atmosphere, against a backdrop of declining incentives and still-to-be-realized grid parity economics.
Even though up 22% Q/Q, Y/Y growth is forecast to drop 25% in for several factors: significant cuts in solar incentives, a weak project financing environment, and a module cost path collapsing so fast that it has left downstream firms needing to offload inventories or face significant write-downs.
The trend of rapidly falling module rates, down 32% Y/Y at the distributor level at the end of Q3?11, has provided a compelling rationale for several downstream companies and end-customers alike to defer purchases in the expectation of further price cuts. In Germany, the prospect of a 15% tariff cut due at the commence of 2012 has finally given the industry a huge sufficient boost to secure the largest share of the Q4?11 European market. Even so, it will be overtaken by Italy as the largest European (and global) market place in 2011, in spite of tight bank lending constraints in Italy.
Ground mounted installations, even though down 27% in 2011, took over one-third of the European industry in H2?11 following a largely seasonal pattern of rising share towards the finish of the year. Non-residential creating mounted systems will take 55% share in 2011.
The European markets are constrained, to varying extents, by tightening of PV incentive policies, bank lending restrictions, and utility concerns over electricity grid stability as PV deployment spreads. In addition, policy alterations created by a variety of European governments, which includes the United Kingdom last week, have had some significant and largely unintended consequences.
?Falling costs have compensated for key cuts in government solar incentives to leave PV investment returns still sufficiently appealing in nearly all markets. Nonetheless, the more crucial consequence of regularly altering incentive policies across Europe has been higher uncertainty and for that reason greater danger for project financiers. This has come at the worst time for banks also suffering under macro-economic and currency crises,? noted Alan Turner, Vice President of Solarbuzz Europe.
Downstream Organizations Will Need to have to Create Extremely Selective Market place Segment Strategies
The Q1?12 industry in Europe is projected to be down 72% Q/Q, with the ground mount segment the hardest hit (down 81%) and residential least affected (down 41%). At the country level, Greece, Spain, and the UK supply the highest incremental marketplace share growth opportunities. The German market is forecast to fall 11% Y/Y in 2012. Installed method costs are forecast to decline by an typical of 17% in 2012.
The effective realization of the rewards of grid parity will call for grid management concerns to be overcome as developers, specifically in Southern Europe, start off to strategy projects financed on the basis of energy obtain agreements. Meanwhile, downstream businesses in France and Italy are receding from the high danger project enterprise to focus on the small roof sector or distribution.
Smaller markets providing the most stable volumes or growth potential over subsequent 1-five years are Austria, Belgium, Bulgaria, Greece, Romania, Spain, Ukraine, and the UK. Even though the latter is facing severe proposed tariff cuts, its residential segment will retain appealing returns with prices continuing to fall. In the main markets, residential is the strongest segment in Belgium and the UK, even though ground mount is strongest in Greece and Spain. The other significant markets have a far more balanced segment mix. France and Italy present the largest forecast quarterly variations in segment mix through 2012.
The new Solarbuzz European PV Markets Quarterly report addresses the challenges and opportunities facing downstream organizations in the face of slowing growth and falling costs to assist them focus their marketing and advertising activities on the distinct segments in specific nations that stay appealing in the near term.
?Our goal with the new report has been to produce an simply accessible analysis that unravels the complexity of the European markets, combined with the common of information integrity for which Solarbuzz is recognized in the industry,? commented Dr. Turner.
The new Solarbuzz European PV Markets Quarterly information-driven report brings together a comprehensive and detailed analysis of pan-European trends, major country marketplace analysis and developments in smaller country markets. PV market place activity over the 12 quarters of 2010-2012 in the key markets of Belgium, France, Germany, Greece, Italy, Spain, and the UK is covered in terms of market drivers and constraints, market place segmentation, policy alterations and their impact on the market place, downstream trends, main project activity, installed technique pricing and PV project investment economics. The smaller country analysis covers what is new and interesting in the past quarter in Austria, Bulgaria, Czech Republic, Israel, Romania, Slovakia, Turkey, and Ukraine. The new European PV Markets Quarterly report includes a 200-page PowerPoint report, an Excel information summary, and PolicyTracker, which is a detailed and comprehensive searchable Excel-based incentive policy archive.
For far more data or to order Solarbuzz regional reports, get in touch with us at one of our seven global locations, email us at get in touch with(at)solarbuzz(dot)com, or call 1.516.625.2452.
Solarbuzz, an NPD Group business, is a globally recognized market place analysis company focused on solar power and photovoltaic industries. Considering that 2001, Solarbuzz has grown its client base to contain numerous of the largest global PV manufacturers, key investment banks, equipment manufacturers, materials suppliers, hedge fund companies, and a vast range of other multi-nationals. Solarbuzz delivers a wide array of reports, including Marketbuzz, an annual global PV industry report, and Solarbuzz