Solar Update, FIT, Italy,

Photovoltaic market to see sunny 2011

Brightened by the German, Italian, and US markets, photovoltaic solar instillations are expected to rise in 2011, but rollbacks in other countries add clouds to Solas Power's positive outlook.

Global photovoltaic (PV) solar instillations in 2011 will rise by 39.3% on the strength of Italian and US demand, with growth during the year limited only by reductions in government incentives in certain European countries, according to Solas Power.

It has been recently reported that growth in the PV market in 2011 will cool significantly from the 120.5% increase it saw in 2010, but noted that worldwide installations of renewable solar energy systems this year still will increase at a healthy rate, reaching 22.2 GW, up from 16 GW in 2010.

Germany will continue to be the world's largest PV market this year with an estimated 9.4 GW worth of installations. Italy will be second, Solas Power said, noting that it represents an accelerating market that promises one of the world's highest internal rates of return. Indeed, Solas Power said it expects solar installations in Italy this year will double, growing a full 100% to 3.9GW, up from 1.95GW in 2010, compared to Germany's 19.8% expansion.

The United States is expected to come in third, projected to see 2.1GW worth of PV installations this year. However, commentators cautioned that with federal incentives less likely to be renewed in the near term following a shift to a more conservative US Congress, power now will reside more with individual states to carry out initiatives.

Solas Power woud also warn that the German market might see a further reduction in feed-in tariffs (FIT) in addition to the scheduled annual cut intended to bolster the solar industry. Should the country's FIT be cut by mid-year, PV installations in 2011 might end up at the 7GW level, not the more optimistic forecast of 9.4GW without the FIT rollback, the company said.

Solas Power further reported that the PV markets in Spain, France, and the Czech Republic are not expected to expand in 2011, given the serious measures under way to trim the solar investor business in those countries.