Abstract
Owing to considerable price drops of solar PV modules in 2011, some regions with relatively high costs for electricity are entering the era of grid-parity. Whether the solar PV companies can have a bright, promising future ahead should merit a closer look. The report offers insight into the Implications of grid-parity for global solar PV development in the areas of financing system, policy planning, and market demand.
Solar PV Vendors Expected to Face Lackluster Market Demand in Early 2012
In spite of the fact that some regions with high electricity costs have entered the era of grid-parity, the solar PV industry is yet to see large-scale system installation demand as previously expected due to several negative factors such as subscriber type changes, excessively production, slow inventory clearance, economic downturn, conservative policies, and the emerging awareness of environmental protection.
Winter is traditionally an off-season for system installations owing to low temperature. Moreover, it is projected that the abovementioned negative factors will not be solved in the short run, it is forecasted that the solar PV companies will witness weak market demand in the first quarter of 2012 and face financial issues.
Industrial Policy and Brand Effect Play Important Roles
The solar PV industry is prone to the fluctuations in the globally economy. Solar PV companies expect to see rapid investment activities due to high return rates in the second quarter of 2012.
Meanwhile, two key factors are expected to determine whether market opportunities can be triggered after grid parity is reached, including whether the European governments will shift focus to policies designed to boost employment instead; and whether brand effect arising from the narrowed price gap between solar PV systems will contribute to the increase of industry concentration.
Appendix
Glossary of Terms