Solarbuzz Reports World Solar Photovoltaic Market Growth of 19% in 2006

2007 WORLD PV INDUSTRY REPORT HIGHLIGHTS:

World solar photovoltaic (PV) market installations reached a record high of 1,744 megawatts (MW) in 2006, representing growth of 19% over the previous year.

Germany's grid connect PV market grew 16% to 960 Megawatts in 2006 and now accounts for 55% of the world market. While Japan's market size barely advanced last year, Spain and the United States were the strong performers. The Spanish market was up over 200% in 2006, while the US market grew 33%.

World solar cell production reached a consolidated figure of 2,204 MW* in 2006, up from 1,656 MW a year earlier. Japanese producers lost ground over the past 12 months, dropping from 46% to 39% share, to the benefit of Chinese cell manufacturers.

Polysilicon production rose 16% in 2006, which, when combined with aggressive PV industry procurement, allowed a marginally higher market growth rate than projected twelve months ago. Nonetheless, polysilicon supply issues will still constrain cell production in 2007.

In respect of industry pricing, 2006 was a year of transition. In the first six months, prices rose through the PV chain in most markets. However, by mid year, customer response led to falls particularly at the module factory gate in Europe.

Global industry revenues were $10.6bn in 2006, while capital investment through the PV business chain totalled $2.8bn. The industry raised over $4bn in equity and debt financing, up from $1.8bn the previous year.

In an intensive look at the future prospects for the PV industry, Solarbuzz has set out three scenarios for the next 5 year period (2007-2011); "Balanced Energy", "Green World" and "Production Led". The commercial environment for each scenario differs significantly. The scenarios yield a range of annual worldwide industry revenues of between $18.6bn and $31.5bn by 2011.

All scenarios anticipate a rapid increase in polysilicon capacity and a return to faster rates of global industry growth. Unrisked polysilicon capacity of no less than 144,000 tonnes per annum can be accounted for by year-end 2011.

In terms of regional market impacts, in the Balanced Energy scenario, Germany market share drops to 31% by 2011. The Production Led scenario delivers the fastest regional growth to the United States as its global share rises to 23%.

Click here for Marketbuzz™ 2007 content outline and listing of charts and tables, and finally the market survey questions.





* the report addresses in detail Gross Cell Production, Consolidated Cell Production and the reconciliation between Consolidated Cell Production and Market Size ("installations") data.