Looking up for the top solar industry stories in 2009
Oh yes! Its time for the ubiquitous “top 10″ lists at the end of the year. Add to that, the fact that its also the end of the decade, and… well… time to roll up your sleeves.
When it comes to the solar industry, a single month may be the equivalent of a year. In other words, looking back over the course of a decade, so much has happened that we couldn’t begin to summarize it all in a single post.
In fact, 2009 was a really big year which is deserving of an entire post devoted to the top 10 solar trends over the past 12 months.
So, without further ado, here are our picks for top solar stories this year:
1. Prices and Production of PV Panels Slashed: Despite news of the impact of global climate change and enactment of numerous government incentives to encourage solar energy, solar manufacturers found themselves in the position of dealing with reduced market demand for PV panels, due to the recession. As a result, prices were cut by much as 50% and companies looked to renegotiate contracts to retain their footing. This, in turn, sparked a price war between German and Chinese solar manufacturers, including allegations that Chinese companies were selling at below production costs.
2. Solar Companies Revise Business Plans: In addition to slowing production and cutting costs, some solar companies revised business plans in 2009, moving from manufacturing to licensing technology, or even selling factory equipment to rival solar cell makers. Innovalight and 1366 Technologies were among several start-up solar manufacturers that found themselves looking for new ways to make money in the business last year.
3. Solar Outsourcing: As the market shifts to a broader consumer base and solar panels become commodity goods, solar manufacturers have started outsourcing some of the production work, instead of owning factories in which all components are constructed and assembled. This past year, BP Solar, SunPower and Evergreen Solar, started hiring contract manufacturers.
4. U.S. Federal Stimulus Dollars: In February, the Obama Administration pushed through a stimulus package with the potential of billions of dollars to be awarded to renewable energy development, including solar. Some of the benefits flowed directly to consumers who installed solar panels on their properties. Solar manufacturers, however, generally are still waiting for the windfall. Although many have applied for loan guarantees and grant monies, only Solyndra in California has been awarded stimulus funds…. so far.
Lots of changes in the solar industry in 2009
5. Germany Continues to Shine Brightly with Solar: Once again, Germany led the rest of the world with respect to solar installations and overall solar capacity. Although the country has been a solar leader for years, this year it exceeded expectations, despite the global recession. Go Germany!
6. Solar Project Development: In addition to manufacturing PV solar cells, some companies started getting into the solar project development business. In other words, permitting, constructing and operating utility scale solar power fields. Not only does this allow them the opportunity to install their own solar panels (creating valuable demand), but they also profit by selling solar electricity to utilities.
First Solar, SunPower, Q-Cells, Solon, LDK Solar, Suntech Power and MEMC Electronic Materials all engaged in solar project development in 2009.
7. Building Integrated Photovoltaics: In 2009, the concept of building integrated photovoltaics (BIPV) really started taking hold. Solar roof shingles and other uses of thin-film solar on the sides of buildings intrigued property owners with ease of application, positive aesthetics and lower cost than traditional PV panels. Looking ahead to next year, market analysts are expecting Dow Chemical and Johns Manville to lead the way with the sale of solar shingles and other flexible thin film solar products.
Solar power in China
8. The Sun Rises in the East: Solar power has been on the rise in both China and India, catching the wave of opportunity created by the solar industry. In China, the government started offering incentives for the installation of solar panels, in order to boost demand for its own solar manufacturers. India, too, is encouraging a switch to solar electricity with its goal to be generating 20 gigawatts (equivalent to 20,000 kilowatts) of solar power annually by 2020.
9. Utilities Are Getting into the Solar Business: Not only are solar manufacturers looking to own and operate utility scale solar plants, but utilities themselves obviously agree that solar is a good investment. Particularly when the U.S. government offers a 30% investment tax credit for owning a solar power plant.
This year, major utilities that are looking to benefit from the tax incentive include Pacific Gas and Electric, Duke Energy, Southern California Edison and Florida Power & Light.
10. Residential Solar Financing Options: This year, a number of options for consumers to finance solar panels arose. Some local governments have started allowing residents pay for solar panels through their property tax bills (known as property assessed clean energy, or PACE). Another option that is growing in popularity is leasing solar panels. Any arrangement by which the consumer can start reaping the benefits of free, clean solar energy without the upfront costs is highly sought after as people consider high energy costs and guarding against future electricity rate increases.
2010 is going to be a big year for the solar industry! We are looking forward to reporting on new exciting stories as they arise. Wishing you a sunny and bright New Year!
Tags: 10 solar trends, solar industry, solar manufacturers, solar panel makers, solar trends 2009, top solar stories, top solar trends
December 30th, 2009 at 1:49 pm
Once again, a powerful and extensive review of solar and that is why this blog is one of the places I turn to make sense out of the mountain of evolving information out there.