Demand for photovoltaics rises again

Demand for solar power systems will grow this year in Germany and in several important foreign markets, despite the financial and economic crisis, according to the latest predictions of BSW-Solar. After a weak first half of the year, the majority of solar companies is currently recording a noticeable recovery in business, and is anticipating a further rise in demand, according to the results of BSW-Solar's latest business climate index. This increased by almost ten points in the second quarter.

By 2010 at the latest, the photovoltaics industry will return to its growth curve worldwide, based on industry estimates. Germany’s solar industry will continue to benefit from this development, despite more intense international competition. Its technological advances, high quality, a considerable potential in terms of skilled personnel and especially Germany's strengths in mechanical and plant engineering are all important contributing factors to this.

Over the last year, German photovoltaics manufacturers were able to increase their production by approximately 65 percent. Their turnover grew from six to ten billion euros and half of this was realised abroad. The photovoltaic supplier industry’s particularly large sales results also contributed to an export balance which is now almost stable, according to the results of a recent market study by EuPD Research commissioned by BSW-Solar. Over the last year around 150,000 new solar power systems were installed in Germany, with a peak capacity of 1.5 gigawatts.

For this year, too, BSW-Solar anticipates a two-figure percentage growth in newly installed PV capacity in Germany. After a rather sluggish start to the year, the association is once again recording a clear revival in demand over the last few weeks. Some large projects may indeed have experienced further setbacks as a result of the financial crisis, but 80 percent of the domestic market remains unaffected. Homeowners and farmers are still proving keen to invest. The fact that prices for solar power systems have fallen by over 20 percent since the end of last year contributed to this, meaning that investment is currently profitable on a multitude of suitable roof spaces.

In the context of intensifying worldwide climate protection measures, the solar sector is also registering noticeable market growth in most foreign markets. Thus, BSW-Solar is expecting a sales growth of 20-30 percent in Italy, and at least 40 percent in the USA. In France and China, the local solar associations are predicting that the market for photovoltaics will at least double in the course of a year. BSW-Solar is confident that German solar companies will also be able to benefit from this.

It is only in Spain that the market is likely to shrink significantly, as a result of a reduction in local support programmes. The resulting loss in sales had led to increased competition and consequently heavy price cuts in the international photovoltaics market. Carsten Körnig, Managing Director of BSW-Solar says, "Due to the market decline in Spain and the financial crisis, international business remained below expectations in the last few months and darkened many a company report. Despite the economic slowdown, we are nevertheless expecting growing demand in Germany in 2009. There are currently many new sales markets developing worldwide. By 2010 at the latest, our sector will therefore return to its worldwide growth path. In particular, we are expecting an all-out solar boom in the USA and China. The expansion of solar energy continues and Germany’s solar industry will benefit from this!"