Global PV markets

While it has only been a matter of months since all lines were opened at its 900
megawatt (MW) Kunitomi production facility, CIGS-module manufacturer, Solar Frontier has been selected for a Japanese government subsidy to construct a new fab. The subsidy is a part of the government’s Great East Earthquake recovery effort.

Both industry and politicians alike have reacted with outrage at Germany’s new FIT plans. According to one analyst, EPC players will be the hardest hit. However, there is still time for changes. The question is, will they be for the better or worse? On one side are the politicians calling for further cuts, and on the other, is the “20 percent” hope that improvements could still be made.

Details have emerged today that BP Solar will withdraw from the consortium that was successful in bidding to install the Moree Solar Farm, under a Government solar program. The photovoltaic power project is partly Government-funded and is be 150 megawatt (MW) in capacity.

Various media sources have reported that Korean electronics giants, Samsung and Hyundai Heavy Industries (HHI) are looking to significantly scale-back their solar businesses. However, according to the companies, the rumors are false.

As was reported yesterday, Germany’s politicians have made some serious changes to the country’s pioneering feed-in tariff (FIT) scheme. Specifically, a one-off cut will be applied in March, monthly tariff reductions will begin in May, the maximum size of photovoltaic plants that can receive a tariff has been capped, and just 85 to 90 percent of solar energy produced will receive support.

Amongst the doom and gloom surrounding the accelerated and sudden cuts to the German photovoltaic feed-in tariffs (FIT), a glimmer of hope has emerged from an unexpected place. On Wednesday, the U.K. achieved one gigawatt (GW) of installed capacity, illustrating just how much faster than expected the British public and businesses have embraced solar.

According to initial media reports, Germany’s politicians want to implement sharp cuts, earlier than scheduled, to its photovoltaic subsidies. Furthermore, the guaranteed tariff should be limited at 90 percent. The ministers will, however, officially present their plans tomorrow.

Analysts at Jefferies have painted a poor picture for photovoltaic demand during the first quarter (Q1) of 2012, and “very real … demand concerns” for the whole year. Overall, they expect European and global demand to fall by 42 percent and 10 percent, respectively. However, it is believed that 2013 will see a market revival.

In figures that appear to confirm post-Fukushima Japan’s dramatic shift away from nuclear power and towards photovoltaics, the domestic module market is shown to have expanded by over 30 percent, from the previous year. The Japanese Photovoltaic Energy Association (JPEA) released the figures that also show that over one gigawatt (GW) of modules were sold domestically, in the first three quarters of 2011 alone.

Following the High Court ruling at the end of January, which saw the U.K. Department for Energy and Climate Change’s (DECC’S) judicial appeal regarding feed-in tariff (FIT) changes thrown out, the department has officially announced it will be lodging another appeal.