The basic requirement for producing solar energy is enough sunshine – which is why solar power is particularly suitable in the “sunbelt” between latitude 30 degrees north and 30 degrees south. As concerns about climate and energy supply issues escalates, government support for the development of renewable energy is increasing and the cost reductions in the industry are moving towards a level approaching grid parity. Strong market growth is expected in several countries in the years to come, although the global financial crisis has had an impact on the solar business and will still affect the growth figures for 2011.
Germany, Spain, USA, Italy, Japan and South Korea are the most developed solar markets today, but other markets are following and see solar power as a key resource in their future energy supply.
Market size 2010
In 2010, the Global Photovoltaic market reached 18 GW and the cumulative PV power installed totaled almost 40 GW compared to 23 GW in 2009 (source Solarbuzz)
Market Size 2011 forecast
The market size predictions for 2011 are 20 GW, based on different reports. The numbers are uncertain however, and the ongoing discussions about new subsidy schemes in several markets will have an impact on the installed capacity for 2011.
GERMANY
Germany is the largest national market in the world, on the basis of its installed base, with a well-developed and competitive industry and an incentives scheme designed to promote on-grid solutions. The scheme is based on so-called feed-in tariffs (guaranteed electricity price for the producers for 20 years). The market growth in Germany from 2009 to 2010 was 100 percent. Germany is predicted to remain the world’s largest solar market through 2011.
Market Size 2010: 7,74 GW
ITALY
The PV market in Italy grew by 386% from 770 MW in 2009 to 3,74 GW in 2010. The Italian PV market profits from a generous national FIT program. The expected worsening of funding led to a boom in the second half of 2010. There are uncertainty about the new funding law and if there will be implemented an annual cap and system size limitations.
Market size 2010: 3,7 GW
SPAIN
The 2010 Spanish PV market was 378 MW, up from 98 MW in 2009. The somewhat surprising 2010 market rebound was mainly a result of registrations on installations within the 12 month deadline to secure subsidy terms. The outlook for 2011 will be determined by adoption to new regulations and stabilization in the economy with return of lending institutions and investors.
Market size 2010: 378 MW
FRANCE
The total French PV market grew by 227% from 220 MW in 2009 to 720 MW in 2010. As a consequence of the strong market growth though, the French government decided to cut feed-in PV tariffs and limit the market with 500 MW per year. Despite the policy setbacks, the 2011 market size still has the potential to strongly exceed the annual target of 500 MW.
Market size 2010: 720 MW
CZECH REPUBLIC
The Czech photovoltaic market reached a level of 1520 MW in 2010. The market exploded by 242% from just 397 MW in 2009. Due to the substantial reduction of funding options in 2011, the Czech PV market is projected to fall below 0,5 GW in 2011.
USA
There are large variations among the 50 states due to significant differences in energy needs, sun hours and political focus. There has been strong growth in the residential segment mostly due to the California Emerging Renewables and New Jersey programs. The eight-year extension of tax credit with removal of caps and new availability to utilities, combined with declining interest rates, causes the US market to grow. The US market size 2010: 949 MW. The growth of the US PV market was partially driven by the rise of the utility segment.
JAPAN
The Japanese market continued experiencing high growth - doubling in size from 477 MW in 2009 to 960 MW in 2010, as a result of the nationwide residental incentive program and the introduction of a Japane version of a Feed In Tariff (FIT) in 2009. New government initiatives has made a declaration to increase the cumulative installed PV capacity by 20 times to reach 28GW by 2020 - and if implemented thoroughly theses government initiatives present very strong opportunites to bring world leader position back to Japan.
Market size 2010: 960 MW
China
Keeping up with the global PV market expansion, the Chinese market witnessed 155% growth in installations in 2010 to 532 MW, up from 208 MW in 2009. The New Renewable Energy law has been adopted, but the significant growth over the last year also strengthen the need to streamline procedures and to gain more visibility of the subsidy programs that apply.
Market size 2010: 532 MW
OTHER EMERGING MARKETS
In Europe there are several growing solar markets with favorable conditions for solar energy as well as governmental support programs, such as in Belgium, United Kingdom and Greece.
Market Size 2010:
United Kingdom 55 MW
Belgium 225 MW
Greece 151 MW