Downstream Solar Power System Firms Indicate The Rebound of Demand

Downstream solar power system firms indicate the rebound of demand in Germany and Italy has been thriving in comparison of the market conditions in the second quarter of 2011. However, despite the increasing requests for quotations, customers have been setting tough price requirements. The firms have been rejecting the orders with unfavorable price requests. According to industry sources, orders have been increasing and with the capacity of solar firms, and it has been difficult to accept all incoming orders. Some customers have been insisting on low prices, but with upstream solar firms all looking to increase quotations, downstream firms can only reject or renegotiate with customers added industry sources. According to the demand from end market customers, Germany's solar market will continue to heat up in the third and fourth quarters, industry sources indicated. Market watchers estimate total installations in Germany in the second half of 2011 will be around 4-6GW. The solar market in Italy will be better in the fourth quarter with installations reaching 2GW in the second half of 2011. Market watchers also predict installation demand in the US market in the second half of 2011 will reach around 1-1.5GW. The UK government provides subsidies for solar power systems less than 50KW and market watchers predict installation demand will reach 300-500MW from the second half of 2011 to the end date of the scheme. The US solar market has been growing and market watchers anticipate with current incentive programs, by 2012, annual installations will be around 3-5GW. However, the US incentive program uses a tax back scheme, not the feed-in-tariff scheme in that Europe has adopted. This means firms are less likely to install solar power systems during low demand as the firms will not be taxed because no profits have been made. Taiwan-based solar firms are Motech, Gintech, Neo Solar Power, Solartech, E-Ton Solar, and Tainergy. Source: www.digitimes.com