Cumulative photovoltaic demand in the UK to exceed 1.6 GW by end of 2012

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Cumulative photovoltaic demand in the UK to exceed 1.6 GW by end of 2012

Greentech Lead America: Cumulative photovoltaic (PV)
demand in the UK will exceed 1.6 GW by the end of 2012, with more than 94
percent of this demand installed during the past two years, according to NPD
Solarbuzz.

This growth rate has elevated the UK to a top-10 global
PV market in 2011 and 2012, and it has ensured that the UK is included in the
leading PV suppliers’ global end-market strategies.

Suppliers of solar photovoltaic (PV) modules and
balance-of-systems components are preparing for a potential Q1’13 revenue
windfall in the UK market.

The windfall will be stimulated by anticipated downward
revisions to Renewable Obligation Certificate (ROC) levels beginning in April
2013, according to the NPD Solarbuzz UK PV Market Entry Guide.

“Explosive PV growth in 2011 and 2012 was dominated by
residential installations benefitted by attractive feed-in-tariffs,” says
Finlay Colville, vice president of NPD Solarbuzz. “However, the focus at the
start of 2013 will change rapidly to megawatt-scale ground-mount installations
as installers seek to beat the end-of-March cutoff deadline.”

A significant pipeline of hundreds of megawatts of
ground-mount applications accumulated in 2012, and successful projects delayed
component purchases as global PV prices continued to fall. In what is expected
to be a frantic rush for the lowest-priced off-the-shelf components, Asian
module, inverter, and racking suppliers are now targeting further market share
gains within the UK.

“Energy costs remain a highly emotive issue within the
UK,” added Colville. “Consumers continue to prioritize investments to hedge
against inevitable rising electricity prices. So long as PV system pricing
continues to decline, there is a strong possibility that the Department of
Energy and Climate Change’s Impact Assessment goal of 22 GW by 2020 can be
reached.”

As the UK PV market transitions from an emerging
high-growth opportunity to a more mature and stable end-market, PV module and
balance-of-systems suppliers have to adjust supply strategies to align with the
leading downstream installers and project developers.

“By the middle of 2012, there were more than 4,000
certified PV installers in the UK,” said Colville, “This made it very difficult
for overseas PV suppliers to decide which companies to forge long-term supply
relationships with. The growth of the ground-mount segment will assist in
filtering down the list of downstream survivors, with many of these companies
participating in the Q1’13 demand pull over the next few months.”

editor@greentechlead.com

 

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