Country specific PV incentive programs at a glance!

DUBLIN, IRELAND: Research and Markets has announced the addition of the "PV Incentive Programs - Country Profiles" country profile to its offering.

With virtually unlimited potential, photovoltaic (PV) technology is the most promising source of electricity for the future.

Driven by carbon concerns, desire for energy independence and limited oil and gas production, many governments want to increase the share of electricity produced by solar panels. However, photovoltaic electricity production remains one of the most expensive.

An effective way to increase PV electricity production is to reduce the cost through targeted incentives. In the last 10 years, a number of government sponsored incentive programs have been established.

Japan and Germany led the way and each encountered tremendous success. The demand for solar panels experienced in recent years in those countries has been a direct result of their incentive programs.

When a country decides to promote PV energy with incentives it will result in: immediate investment opportunities; creation of thousands of jobs; and shipping of solar products in substantial volumes. But, incentive programs are complex and it is crucial for everyone involved to have a clear picture of the situation to make informed choices.

As an example, in 2007 Spain launched interesting PV incentives which created demand and investors responded. As installed capacity exceeded targets, in 2008 the Spanish government limited the program. The PV industry in Spain was hit hard. In 2007, all lights were green and companies expanded capacity. By 2009, the limitation of the incentives reduced demand and companies suffered due to over investment.

To properly gauge the market, each new incentive program must be analyzed and converted into a number of peak megawatts (MWp) installed. As countries rush to promote this technology many new incentive programs have been announced. China, France, Czech Republic and Bulgaria among others are rolling out programs. The opportunities these programs create are not without peril.

Information described in this report is based on an in-depth investigation that Yole Développement carried out on 80 countries.