Photon Consulting expects solar industry downturn in 2012

January 13, 2011
Facebook
Twitter
LinkedIn
Reddit
Email

According to a new report from market research firm Photon Consulting, the PV industry is looking at a supply-driven price crash on the back of expected strong feed-in tariff cuts in Germany over the next two-years, which will dampen demand sufficiently to cause a glut in modules and impact the entire supply-chain.

“Executives in the solar power sector are balancing significant, long-term opportunities against considerable near-term risks. This dynamic makes 2011 a critical decision-making year for solar executives,” noted Michael Rogol, Photon Consulting CEO. “This report pinpoints and quantifies essential industry risks and opportunities so solar decision-makers can prioritize and execute on the right next steps for their company.”

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The report is claimed to advise companies to take specific actions to address the looming saturation of the German PV market as well as providing key metrics and timing guidance on when German policymakers are expected to implement volume restrictions on PV interconnections to slow the market’s rapid installation growth.

As with 2009, the German market is expected to be the largest for PV installations in 2010. Concern is that the higher record figures for 2010, which have yet to be released, could trigger further government policies to restrict installations and the cost to consumers under the EEG system.

Photon Consulting noted that since 2000, the solar power sector has achieved a 56% compound annual growth rate in installations but the expected saturation of the German PV market would lead to the solar sector's first year of negative growth in recent history.
 

Read Next

December 12, 2025
A roundup of three solar PV project financing stories from Australia, Texas and California, with updates from Potentia Energy, Origis Energy and Baywa r.e.  
December 12, 2025
A round-up of news coming from Europe, with IPP Encavis acquiring a 265MW solar PV portfolio in Italy, Iberdrola starting construction on 366MW of solar PV in its home country and IPP Sonnedix signing a renewables supply agreement with a subsidiary of Volkswagen in Spain.
December 12, 2025
India’s flagship solar PV manufacturing incentive has driven “robust growth” in the sector since its launch, but hurdles remain to building a complete domestic supply chain.
December 12, 2025
Solar PV companies in the US are not waiting for guidance from the US Departments of the Treasury or Energy to act regarding Foreign Entity of Concern (FEOC), according to a survey conducted by Crux.
December 12, 2025
US solar PV module prices have stabilised at just over US$0.28/W in the three months to November 2025, according to Anza.
December 11, 2025
The Chinese polysilicon industry has emerged with a new "inventory platform" with a RMB30 billion capital aimed at increasing prices.

Upcoming Events

Upcoming Webinars
December 17, 2025
2pm GMT / 3pm CET
Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 24, 2026
Dallas, Texas
Solar Media Events
April 15, 2026
Milan, Italy
Solar Media Events
June 16, 2026
Napa, USA