Photovoltaics in the USA -– stop or go?

DUBLIN, IRELAND: Research and Markets has announced the addition of the "Photovoltaics in the USA" report to its offering.

First comprehensive study of the US photovoltaic market based on a broad quantitative data base released. New study by EuPD Research analyzes current developments in the US photovoltaic market. Market participants expect a moderate but steady growth. Stop-and-go political support one of the key hindrances for market growth.

Cautious optimism
There is good evidence that the US photovoltaic market will be one of the key future markets for photovoltaics. However, up to now, the market has had to struggle with erratic political support for renewable energies, as well as highly complex promotion structures and strong fragmentation due to the 50 separate state markets.

The results of the new survey of around 130 US photovoltaic companies and electric utilities show a clouded optimism after a prosperous year 2007. While the companies generally expect increased sales for the current year (plus 62.2 percent on average) and consequently also a market growth of 50 percent to 300 MWp in 2008, the sinking rebate levels in California as well as the failed extension of the tax credit are slowing down the positive development of the market.

Slowdown for the market
If not extended, the most important national promotion instrument - the investment tax credit (ITC) -- will go down from 30 to ten percent for commercial customers and to 0 percent for residential customers on December 31st, 2008. However, it has become very unlikely that this will happen under the current president.

While the sudden interruption of renewable energy promotion seems difficult to understand in view of the oil price shock and pressing climate change issues, events like these are not new to the market. "It continues the stop-and-go-policy that has characterized the market in the past", explains project manager Sarah Endres.

Special products for a special market
Availability is also an issue for the market players. In total, 62.8 percent of the respondents report problems when purchasing modules. Some market players stated that they pretty much sell what they can get.

Nevertheless, the survey results show some clear trends regarding which product characteristics are demanded in the market. "Design aspects seem to be a big issue in the residential segment", explains Endres.