The solar energy market has undergone a dramatic transformation over the past two years, driven by a new abundance of polysilicon, the effects of the worldwide financial crisis and the plunging price of solar modules, states Pike Research in a new report.
As a result of these factors, the industry has shifted from supply-constrained to demand-driven, and a few strong companies have been able to improve their revenues and market share based on a low cost per watt combined with high module efficiency.
According to the report, this market realignment will set the stage for a new era of solar growth over the next several years, and the cleantech market intelligence firm anticipates that by 2013, in many markets, solar costs will reach the long-elusive goal of grid parity.
Between 2010 and 2013, Pike Research forecasts that solar demand will increase at a compound annual growth rate of 24%.
‘Solar prices are plunging quickly, and lower pricing will fuel a surge in demand in 2010 and beyond,’ says senior analyst Dave Cavanaugh. ‘However, pricing trends and oversupply of solar modules will also place huge pressure on solar suppliers, especially Tier 2 and Tier 3 companies that are not well-equipped to weather the storm. We expect a significant shakeout among solar suppliers in the next two years.’
Cavanaugh adds that 10 key factors will determine the success and survival of solar suppliers during this period of industry consolidation: low-cost polysilicon and wafers, low-cost process materials, low-cost processing, module efficiency, economies of scale, market presence in key growth countries, supply-chain integration, strong balance sheets and internal financing of growth, module manufacturing in North America and low-cost European Union countries, and a strong position in niche markets.
SOURCE: Pike Research