Samsung bets Big on Green Energy propelled by Competition and Growth Imperative
May 11, 2010Despite the European Bazooka,Falling Chinese Stocks May Point to a Market Top
May 11, 2010Demand 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
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[…] 2010 Solar Installation Growth Rate is going to be above 50% driven by a sharp decline in module prices and excelled government guaranteed above market prices for solar generated electricity .This has also been projected by multiple analysts and research firms . Now an industry heavyweight with its numbers is doing the same. SMA sold 1.3 GW of inverters in the first quarter with 43% marketshare implying roughly 3 GW of installations in the first quarter of 2010 worldwide.These would imply an annual run rate of approximately 12 GW . Note the first is the seasonally slow quarter so even with German FIT cuts in July , this should be achievable. 2011 is yet an open question but one thing is for sure with the oil prices on continued secular growth,oil rigs causing pollution hazards and solar prices the only form of energy with a sharply decreasing price curve,the secular growth for solar will be solidly positive. […]
[…] 2010 Solar Demand to Skyrocket, 2011 however is a Question […]