Suppliers of solar modules and balance-of-systems components are preparing for a potential first-quarter 2013 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.
"Explosive solar growth in 2011 and 2012 was dominated by residential installations benefitted by attractive feed-in-tariffs(FITs),"according to 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 solar prices continued to fall.In what is expected to be a frantic rush for the lowest-priced off-the-shelf components,Asia-based module,inverter,and racking suppliers are now targeting further market share gains within the UK.
Cumulative solar demand in the UK will exceed 1.6GW by the end of 2012,with more than 94%of this demand installed during the past two years.This growth rate has elevated the UK to a top-10 global solar market in 2011 and 2012,and it has ensured that the UK is included in the leading solar suppliers'global end-market strategies.
Moreover,the UK has a lower financial risk assigned to investments(compared to other legacy solar-rich countries within Europe),and many solar component suppliers are now planning long-term strategies based on sustained UK solar industry growth.The UK solar market is even more appealing to overseas suppliers because of the low level of domestic solar manufacturing in the UK.
However,it is supplying energy that underpins the UK's role within the global solar industry."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 solar PV system pricing continues to decline,there is a strong possibility that the Department of Energy and Climate Change's Impact Assessment goal of 22GW by 2020 can be reached."
As the UK solar market transitions from an emerging high-growth opportunity to a more mature and stable end-market,solar 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,"added Colville."This made it very difficult for overseas solar 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 first-quarter 2013 demand pull over the next few months."
