The solar market appears to be playing out according to plan
The mid year cuts in the German feed-in tariff have been expected to spark a wave of panel buying early in the year ahead of the reduction. Then when the world’s largest market lowers its incentives, a slowdown is to take hold.
This appears to be what is happening, if the financial performance of First Solar is a guide. The world’s largest solar manufacturer said quarterly sales through March grew a healthy 36 percent. But it suggested the German market could see a 25 percent decline after the tariff reduction takes affect in July
That will slow overall growth in Europe to a depressed 25 percent – despite the 60 percent market expansion that should occur outside of Germany, says First Solar CEO Robert Gillettte.
In North America, utilities are showing sizeable interest in large solar power plants, says Gillette. However, China has delayed the fifth stage of its solar rollout.
First Solar believes the market will increase 41 percent this year, but then show slower 22 percent growth next year and 26 percent growth in 2012.
So far, the company is able to sell everything it can make, says Gillette. Price declines have also been moderated because of the strong demand.
Come the second half of the year, the story may change.
