Solar energy market research firm Solarbuzz expects that in the fourth quarter of 2011, the European solar market will grow 22% from the previous quarter, which will help drive the development of downstream companies in the short term; but as the world's largest solar market, despite the fourth quarter has achieved With higher growth rates, European solar companies still face the challenge of how to improve management efficiency in an environment where the overall market is turbulent and declining. The same price of electricity has still not been realized, and the subsidy policy has been continuously curtailed. It will be a new challenge for downstream companies to operate effectively in the new price environment in 2012.
Solarbuzz said that although the European solar market is expected to grow by 22% in the fourth quarter compared to the previous quarter, it is expected to drop by 25% compared to the same period in 2010, mainly due to sharp reductions in solar subsidies, weak financing environment, and module prices. Too fast to fall makes downstream companies need to reduce inventory in order to avoid high inventory losses. At the end of the third quarter of 2011, the price of dealership modules dropped by 32% compared with the same period of last year. Many downstream companies and end-users postponed their original procurement plans to wait for further price declines.
In early 2012, the on-grid tariff in Germany will be reduced by 15%, which will stimulate demand in Germany's solar energy market. This will also make Germany become the largest solar market in Europe in the fourth quarter of 2011. Throughout the year, despite the constraints of bank loans, Italy will still replace Germany as Europe and the world's largest solar market.
Although the floor-mounted system in 2011 was 27% lower than in 2010, due to seasonally rising demand at the end of the year, it will still account for more than one-third of Europe's market in the second half of 2011. The non-residential construction installation system is expected to account for 55% of the market in 2011. Solarbuzz pointed out that the European market has been constrained by solar energy subsidy policies, bank loan restrictions, and utility grid instability in varying degrees. In addition, the frequent changes in European governments’ policies have also had many impacts on the solar market.
"The falling prices have largely made up for the cuts in government subsidies, which have made solar investment returns in almost all markets still attractive enough. However, frequent changes in the entire European subsidy policy have brought about greater uncertainty. Sex will make project financiers take on higher risks. With the sluggish macroeconomic and currency crises, banks are also in the most difficult times,†said Alan Turner, vice president of Europe for Solarbuzz.
Solarbuzz said that although the European solar market is expected to grow by 22% in the fourth quarter compared to the previous quarter, it is expected to drop by 25% compared to the same period in 2010, mainly due to sharp reductions in solar subsidies, weak financing environment, and module prices. Too fast to fall makes downstream companies need to reduce inventory in order to avoid high inventory losses. At the end of the third quarter of 2011, the price of dealership modules dropped by 32% compared with the same period of last year. Many downstream companies and end-users postponed their original procurement plans to wait for further price declines.
In early 2012, the on-grid tariff in Germany will be reduced by 15%, which will stimulate demand in Germany's solar energy market. This will also make Germany become the largest solar market in Europe in the fourth quarter of 2011. Throughout the year, despite the constraints of bank loans, Italy will still replace Germany as Europe and the world's largest solar market.
Although the floor-mounted system in 2011 was 27% lower than in 2010, due to seasonally rising demand at the end of the year, it will still account for more than one-third of Europe's market in the second half of 2011. The non-residential construction installation system is expected to account for 55% of the market in 2011. Solarbuzz pointed out that the European market has been constrained by solar energy subsidy policies, bank loan restrictions, and utility grid instability in varying degrees. In addition, the frequent changes in European governments’ policies have also had many impacts on the solar market.
"The falling prices have largely made up for the cuts in government subsidies, which have made solar investment returns in almost all markets still attractive enough. However, frequent changes in the entire European subsidy policy have brought about greater uncertainty. Sex will make project financiers take on higher risks. With the sluggish macroeconomic and currency crises, banks are also in the most difficult times,†said Alan Turner, vice president of Europe for Solarbuzz.
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