Bookmark and Share

2010 Solar Demand to Skyrocket, 2011 however is a Question

3 Comment

Demand in 2010 for solar products is going to be extremely strong with projects of 30-100% y/y increase. Already prices increase and shortage in intermediary products like cells and wafers are being seen. High Returns on solar installations due to a 50% fall in module prices is the chief factor driving the demand these days.However Germany which is the biggest market with almost 40-50% of the world demand is sharply cutting the subsidies by as much as 35% between Jan1 2010 and Jan 1 2011 to curb the costs to electricity rate payers. The other 2 big markets like China and USA are not ramping up fast enough due to inconsistent and fragmented  policies .Solar stocks which used to trade at 40-100 P/E valuations in 2008 are now languishing between 5-20 P/E due to the weak sentiment and uncertain future. However no one will dispute that the industry will grow at 2–30% CAGR for the next 5 years.At such high growth rates even with ups and downs you could make a pile by investing in the cost and technology leaders like Trina Solar and First Solar.There are other ways to play the massive growth in this industry like inverters,equipment,glass,mountings,encapsulants as well.

Solar players wary on 2011 after Q1 demand boost – Reuters

Germany’s top solar companies warned an ongoing drop in prices for cells and modules could hit profits after releasing mostly better-than-expected results on strong demand in their home market, the world’s biggest.

“I am quite optimistic for business in the second half of the year,” Nedim Cen, the 44-year-old chief executive of Q-Cells  said during a conference call. “But I’m concerned that further price decreases could kick in in 2011.”

Andreas Haenel, chief executive of solar wholesaler Phoenix Solar, also hit a cautious note, saying he expected a drop in demand for solar products in the third quarter, after sector subsidy cuts in Germany took. [ID:nFAB015619]

The first-quarter results from Q-Cells, Phoenix Solar and solar machine manufacturer Centrotherm  beat most analysts’ estimates. The companies said they benefited from customers bringing forward orders ahead of sector subsidy cuts in July. [ID:nLDE6452I3]

Chinese peer LDK  hit a similar note late on Monday, posting better-than-expected first-quarter results also buoyed by strong demand in Germany, while SolarWorld ( Germany’s biggest solar company by sales, failed to meet analyst expectations


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

3 Responses so far | Have Your Say!