Europe remained the largest regional market, taking nearly 16,500 megawatts or 60% of global demand. However the percentage shrank, from 68% in 2011 and 82% in 2010.
Asian nations installed 8,690 megawatts, led by a spurt in Chinese demand in the second half of the year. North America accounted for 3,490 megawatts, with much of the demand coming from California, where renewable portfolio standards and rebates smoothed the path.
The data comes from NPD Group’s Solarbuzz unit, and the company’s senior analyst noted the acute problem for the solar PV makers like First Solar Inc. (NASDAQ: FSLR), SunPower Corp. (NASDAQ: SPWR), and others:
For supply and demand to have been balanced during 2012, end-market demand should have approached the 45 GW level. This is 50% higher than actual PV demand in 2012, and reflects the lack of demand elasticity that characterizes the PV industry today. It also explains why even those companies that gained market-share in 2012 still ended up reporting significant operating losses.
Solarbuzz did not offer a forecast for solar PV installation in 2013, but did say that emerging nations (read “China”) will be “pivotal” to the solar industry’s supply and demand balance.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
