We know this much about the solar industry as we approach the end of the year. It was another year of fast moving changes in the industry. The good news is that in 2012, there were a whole lot of solar panels going up on homes and businesses in the U.S. And there were some setbacks for the industry. At the beginning of the year, few had even heard of Solyndra—but by the end of the year, Solyndra had become a household name. As the New Year approaches, we want to reflect back on what 2012 meant for the solar industry. In our blog, we will discuss some of the highs and lows for the solar industry this past year. In this first of two blog posts, we will reflect on the decrease in the price of solar panels, on the effect of natural gas and coal on the solar industry, and finally on the dwindling incentives available to support solar energy.
Posts Tagged ‘grant program’
The whirl of events have left even the closest market observers shaking their heads in disbelief at how much has changed in the solar industry over the past several months. The solar industry is one of the fastest growing industries in the United States. Just how much is the solar energy business growing in the US. Well, a lot if you are counting watts. If you take the second quarter of 2010, 186 megawatts was installed; 2011, 314 megawatts, or an increase of 69%. The irony is that despite this explosive growth in the solar industry and a lot more people putting solar panels on their roofs, solar companies are getting hammered. Their margins are being squeezed and they are not making much money. I am not even talking about the woes of Evergreen Solar, which filed for bankruptcy and is down 99% year-to-date. We won’t even talk about the spectacle of Solyndra, the financial problems of which may only be the least of the problems for some of the executives there. (When the FBI comes knocking on your door, they are usually not bringing gifts.) If you are or were an investor in solar energy stocks, don’t even look at your stock holdings unless you want to barf up your breakfast. But if you are a homeowner interested in a home solar panel system, you may still be smiling as prices have come way down.
These are some of the highlights of the year gone by and an outlook of things to come for 2011. The solar industry has waited to find out what would be the fate of the Treasury Grant program. If you haven’t tuned in for this debate, this development is very good news for the renewable energy industry. The solar industry had another stellar growth year. A recent report predicted that the industry will grow as much as 22% in 2010, when all of the numbers (modules) have been counted. The one gnawing issue is that the solar industry is quickly becoming a Chinese industry, as even today the Chinese own 66% of world production. It was a better year to put home solar panels on your roof than investing in solar stocks. Morningstar says that solar investors “could be in for a rude awakening come 2011.” The biggest change in the industry came with the micro-inverter. Sure, solar panel efficiencies improved, which means more output for the buck, and the price of PV came down, but the biggest change in the industry came with the industry acceptance for residential PV installation of the micro-inverter. Enphase is no doubt the market leader, but there are many, many wanabees and the competition for micro-inverters will heat up in 2011. The other major shift we saw in the industry is that regardless of whether the homeowner gets a micro-inverter, the homeowner almost invariably wants to get monitoring of the solar energy system.