Deutsche Bank predicts imminent upturn for solar industry

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

The solar industry is on the brink of a sustained period of momentum, according to a bullish research note by Deutsche Bank published on Wednesday.

The report predicts that a re-balance in the supply and demand of polysilicon, the growth of new markets and stablising module prices will make 2014 a pivotal year in the industry’s development.

“We believe the solar sector is at an inflection point and industry fundamentals are likely to improve further into 2014,” states the report.

“The sector has passed the tipping point for grid parity in more than ten major markets worldwide and will likely maintain this momentum even with elevated poly prices. As module prices stabilise around $0.60-$0.70/W, levelised cost of solar electricity without subsidies is now 10-20c/kWh in several major regions of the world. Rising electricity prices, a need for competitive generation sources and lowered balance of system costs will drive further improvement over the next several years.”

According to the research note, demand for polysilicon could outstrip supply by 2014 with the glut of polysilicon swallowed up and much production capacity, particularly in China, going offline.

The bank predicts a rise in module prices levelling off at around US$0.70 per Watt due to the impact of tariffs on Chinese cells entering Europe in the third quarter of 2013 and the levies on Taiwanese products entering the US.

Many large PV manufacturers have seen their share prices shoot upwards during the past month and Deutsche bank expects this to continue. 

“Despite the strong year-to-date performance, we believe the solar rally has legs. Demand outlook is improving due to strong demand from Japan, China, US and other emerging markets. The supply situation is also a lot better in our view – Chinese tier two/three supply cuts have accelerated over the past 18 months and supply from large Chinese companies such as STP, LDK has decreased sharply, particularly in markets outside of China,” it predicts.

“With the potential resolution of EU/US/China tariff uncertainty, we expect relatively stable pricing, improving margins and further sector consolidation to drive gradual profitability improvement, which in turn could act as the next set of catalysts for solar stocks.”

Bloomberg New Energy Finance has also expressed optimism about solar share prices.

21 September 2021
C&I consumers currently source only about 7% of their power requirement directly from renewables. Indian corporate renewable market has grown rapidly and holds huge growth potential as companies look to reduce power purchase costs and cut carbon emissions. BRIDGE TO INDIA has built significant expertise in the corporate renewable business by working on over 30 consulting assignments and various research reports. We are organizing this conference to bring all stakeholders together and delve deeper into various market aspects. The conference will be held on a virtual platform with excellent networking opportunities for all participants.
22 September 2021
To commemorate the World Energy Storage Day(WESD) on 22 September, being recognized worldwide, Customized Energy Solutions (CES) and India Energy Storage Alliance (IESA) is organising the 5th global conference and virtual expo, which will be held virtually on 22 September 2021. WESD is a global movement initiated by various apex trade bodies working to promote and adopt energy storage, e-mobility & green hydrogen technologies for a sustainable future. The forthcoming edition of WESD is expected to attract global participation with an intent to facilitate bi-lateral trade, market development and new research and innovation, which will invite 100+ countries, 100+ regulators & policy makers, 100+ International speakers,1000+ organisations, 100+ partners & exhibitors and 20,000+ global delegates.
28 September 2021
Solar Solutions International is the largest trade show for solar energy in Northwest Europe. Now the solar market has grown up, it's time for the next step. Solar Solutions International displays more than 500 innovations and over 100 practical seminars concerning the latest in energy storage, smart products, and an ever evolving array of solar panels. As an exclusively B2B trade show, Solar Solutions International offers both exhibitors and visitors the chance to network at the highest level. Duurzaam Verwarmd, the largest trade show for sustainable HVAC technology in the Benelux, is held simultaneously. This way your one visit gets you up to date with all of the developments in both sustainable energy and heating.
6 October 2021
Intersolar Europe is the world’s leading exhibition for the solar industry. It takes place as part of The smarter E Europe – the continent’s largest platform for the energy industry. Under the motto “Connecting solar business,” manufacturers, suppliers, distributors, service providers and project planners and developers from around the world meet in Munich every year to discuss the latest developments and trends, explore innovations firsthand and meet potential new customers.
6 October 2021
The future is bright for a new era of US solar and storage, and the 8th annual Solar & Storage Finance Summit will provide opportunities to discuss solutions to the industry’s challenges and provide a networking platform designed to bring together the top minds in the industry to do business. With a mix of high-level, informative presentations and panels, a stellar cast of speakers and audience members with deal-making capacity, the 2021 edition of the event will be a sell-out success.
18 October 2021
Intersolar South America, South America’s largest exhibition and conference for the solar industry, takes place at the Expo Center Norte in São Paulo, Brazil on October 18–20, 2021, and has a focus on the areas of photovoltaics, PV production and solar thermal technologies. At the accompanying Intersolar South America Conference, renowned experts shed light on hot topics in the solar industry.

Read Next

PV Tech Premium
September 21, 2021
Pressures on PV plant performance have led the solar industry to be more demanding and forensic of the data operational projects generate, as well as the power. Jules Scully explores the growing role software is playing in the utility-scale solar arena and how it must evolve further still to meet expectations.
September 21, 2021
A round-up of the latest news from the US PV sector, including project developments from Ørsted, Candela Renewables and CEP Renewables.
September 21, 2021
New York’s governor has proposed an expansion of the NY-Sun distributed solar incentive programme and revealed plans for two transmission projects that will transport renewable energy to New York City to help the state reach 70% renewable electricity by 2030.
September 21, 2021
German solar installer Enpal has raised €345 million (US$405 million) in debt financing to fund the deployment of more than 15,000 household solar PV systems
September 21, 2021
India added 521MW of rooftop solar in Q2 2021, an increase of 517% compared to the 85MW added in the same quarter last year despite a slight increase in costs, according to a Mercom India report.
September 21, 2021
Private equity firm American Securities has secured a deal to acquire US solar engineering, procurement and construction (EPC) provider Swinerton Renewable Energy and its operations and maintenance (O&M) subsidiary SOLV from Swinerton Incorporated.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK
Solar Media Events
December 1, 2021