Market Watch

The solar yieldco business model was “flawed from the beginning” according to Santosh Raikar, managing director of renewable energy investments at State Street Bank.

The rebound in solar cell capital expenditures during 2015 and 2016 has resulted in strong capacity additions and upgrade spending that is set to redefine the technology landscape in 2017 and beyond. Within this however is a broad range of drivers, impacting the mix of n-type and p-type cells produced, in addition to the various strategies employed to increase cell efficiencies while reducing overall blended manufacturing costs. Coupled with the various module types being selected within the key global end markets, and the balance between effective capacity and market demand, 2017 is forecast to see a range of approaches adopted by cell producers, with technology differentiation becoming increasingly important across the entire industry.

Capital expenditure by the solar PV industry continues to rebound from the lows of 2012, but the spending trends have now shifted from polysilicon expansions to cell capacity additions. In particular, the transition to cell capex has been driven mainly by the need for Chinese module suppliers to diversify manufacturing outside mainland China and especially to countries in Southeast Asia, coupled with the ongoing problems for polysilicon producers struggling to adapt to sales prices for goods produced.

An eight-page special report on the growth of solar in the MENA region, focusing on market opportunities, policy, technology, and operations and maintenance.

The solar industry is going through the final stages of correcting its supply–demand imbalance, with the decision-making on technology choice for the next generation of GW-scale factory expansions becoming a key strategic issue for leading manufacturers. In contrast to previous capacity expansion phases – where new entrants largely copied known process flows and technology types – the next round of technology additions is seeing a broader range of influences, indicative of a new type of technology roadmap unfolding for the industry as a whole.

India’s 100GW solar target has unsurprisingly attracted huge interest from foreign players, but the market is not an easy one for outsiders to access. Reporting back from Intersolar India, held in Mumbai in November, Tom Kenning explores some of the key barriers to entry for overseas investors.

Policy | As one long-running policy saga finally draws to a close, a series of attacks on renewable energy support have offset any progress that had been made. Tom Kenning explores the latest setbacks and where the possibilities for progress may lie.

Solar auctions | The proposed closure of the UK’s Renewable Obligation programme to solar from next March would leave the Contracts for Difference programme as the only form of support for large-scale PV. Finlay Colville looks at the prospects for an auction-based system taking off in the UK.

Solar support policy | The UK’s solar industry has grid parity within reach, but recent proposals to cull various subsidy schemes threaten to pull the rug from beneath its feet. Liam Stoker asks whether the UK can embrace alternative forms of support to help solar achieve long-term freedom from subsidy.

State energy policy | Acceptance of solar in the boardrooms and living rooms of America along with President Obama’s Clean Power Plan potentially put the US on the precipice of huge solar growth, but the patchwork of state solar policies remains a barrier. John Parnell and Tom Kenning look at some of the US’ leading solar states and ask what others could learn.