IBISWorld, a company involved in market research, has introduced a new report, Rising Sun, on solar panel production industrial sector.
During the last five years, the solar panel industry has been successful due to the incentives offered from the government to downstream solar power production companies and energy products producers. The solar panels from the industrial operators were purchased by the downstream solar power production companies.
As per Justin Molavi, an industry analyst, it is difficult for the solar power production companies to compete with conventional energy producers without government subsidies. The demand for solar panels has been enhanced due to the incentives. Moreover, the reduction in the silicon cost helped US players to contend with other overseas producers. Hence, the industrial income is expected to increase up to 29.0% approximately per year, to reach $4.1 billion in 2012 and 5.0% improvement is anticipated in 2012 alone.
The international solar market growth has enabled further development of the solar industry. The solar power generators received incentives through the laws enacted by various countries including China, Italy, Spain and Germany. Nevertheless, some European countries, which are under debt, have taken back renewable energy incentives affecting the growth opportunities of solar industry. However, the US companies contend with other affordable solar producers in foreign countries such as China. Hence, many companies left the industry. Only certain companies including SunPower, Sharp, First Solar and Suntech Power Holdings lead the solar industry.
However, the customers prefer solar systems due to the expiry of tax credits for solar power in 2016. Furthermore, the continuous subsidies from governments will develop solar industry. Even though China offers inexpensive solar panels, the US industry is expected to grow in the next five years till 2017.
The important topics included in the report include industry performance, outlook and life cycle, major external drivers, supply chain, products and sectors, products and services, globalization and much more.