Record Module Inventory Awaiting Installation As Prices Continue To Fall

Global PV module inventory levels have reached over 10 GW in the second quarter of 2011, the highest amount recorded to date, according to the latestanalysis from IMS Research.

High inventory levels, as well as lower incentive levels in key European markets, have contributed to rapidly decreasing prices during the quarter, the company says.

A sudden slowdown in completed installations due to the halting of the Italian market, as well as a slower than expected start to the year in other key European markets, has led to a sharp increase in stock levels throughout the supply chain. Inventory levels at manufacturers, distributors, integrators and installers have all climbed during the first half of 2011.

Most of this record inventory has already been shipped by module manufacturers and is located in distribution and sales channels. IMS Research estimates that almost 8 GW of modules are currently shipped by suppliers, but have yet to be installed and connected to the grid.

"Throughout 2010, when all products were moving quickly through the supply chain, channel inventory typically stood at four to five GW; which is roughly equivalent to one quarter's production," says Sam Wilkinson, a PV research analyst at IMS Research. "Generally speaking, a module will take around three months to be shipped, transported and make its way through distribution channels before being installed, so this figure appears reasonable."

"Many in the industry consider today's inventory level to be shocking," Wilkinson adds. "However, it represents an increase of only around three to four GW over 'normal' levels."

In addition to the large channel inventory of modules, supplier inventory has also grown quickly in early 2011; most suppliers are reporting that year-to-date production has far exceeded shipments. The resulting increase in modules held in stock by suppliers has taken the total PV module inventory over the 10 GW mark, IMS Research explains.

The company predicts that further declines in average PV module prices will lead to a strong recovery in the PV market, in particular, led by growth in Germany and the U.S. High inventory levels are expected to begin to be corrected in the third quarter.

Source:  Solar Industry

PV LEGAL Reports Progress In Reducing Barriers To Solar Deployment

After almost two years of operation, the PV LEGAL consortium says that "real progress" has been made removing legal and administrative barriers to solar PV in a number of the countries involved in this European Union-funded project.

Starting in July 2009, the PV LEGAL project has enabled countries, such as Greece and Slovenia, to improve their legal-administrative framework for the development of photovoltaic systems.

In Greece, procedures for residential systems were simplified in summer 2010: A one-stop shop was set up, reducing the procedure to a single step, and systems in autonomous islands are now authorized. The procedure to install systems on historical buildings has also been simplified.

In Slovenia, changes in September 2010 meant that PV systems of less than 1 MW no longer require a building permit, which was a major road block for the development of small- to medium-size systems, the consortium says.

However, in some cases, such as in Spain or the Czech Republic, procedures have become considerably more onerous, to the extent that it is now sometimes impossible to get a grid connection permit for projects, seriously hindering market development. According to the consortium, in some cases, these barriers have been deliberately introduced recently by the national authorities in order to slow down or even stop PV development.

The latest update from the PV LEGAL is designed to provide a comprehensive overview of administrative barriers hampering the development of PV in Europe. It covers 12 countries, including most of the main photovoltaic markets in Europe: Bulgaria, the Czech Republic, France, Germany, Greece, Italy, the Netherlands, Poland, Portugal, Slovenia, Spain and the U.K.


Source:  PV Legal / Solar Industry

Virgin Islands Utility Seeking 10 MW Of Solar PV Capacity

The Virgin Islands Water and Power Authority has issued a request for proposals (RFP) to purchase solar photovoltaic generation from independent power producers. The authority is seeking a maximum of 10 MW of electrical capacity, allocating approximately 5 MW to each of its two generation facilities serving the districts of St. Thomas-St. John and St. Croix.

Consideration will be given to a different allocation of the 10 MW capacity between the two districts. The selected respondents will be responsible for constructing, operating and maintaining all facets of the project. The utility will sign a 20-year power purchase agreement (PPA) for the procurement of solar energy from one or more selected respondents, with an option to renew for another 5 years.

To assist interested bidders, the preferred model of the PPA, with specific terms and general concepts important in developing responsive proposals is included in the RFP. Under the PPA, projects are required to be commercially operational 18 months after approval of the agreement by the authority's governing board and the Virgin Islands Public Services Commission.

The full solar PV RFP can be viewed here.


http://www.viwapa.vi/Home.aspx

DOE Offers $737 Million Loan Guarantee To SolarReserve's Crescent Dunes Solar Project

SolarReserve, a Santa Monica, Calif.-headquartered developer of large-scale solar power projects, says the U.S. Department of Energy (DOE) has offered the company a conditional commitment for a $737 million loan guarantee for the 110 MW Crescent Dunes Solar Energy Project to be built in Tonopah, Nev.

According to the company, the DOE loan guarantee offer is a critical step in the progress of this landmark project, with construction slated for this summer and the start of operations in late 2013.

Electricity from the project, which will use SolarReserve's molten-salt power-tower technology, will be sold to NV Energy under a long-term power purchase agreement approved by the Nevada Public Utilities Commission in 2010.


Source:   SolarReserve

New York City Seeking Bids For Solar PV Installations On City Buildings

New York Mayor Michael R. Bloomberg, Deputy Mayor for Operations Stephen Goldsmith, Department of Citywide Administrative Services Commissioner Edna Wells Handy and Office of Long-Term Planning and Sustainability Director David Bragdon have announced that the city is seeking proposals from private companies to install and operate solar energy systems on five city buildings.

Under this public-private partnership, a solar developer will install, own and operate photovoltaic systems for 20 years and leverage federal incentives to sell the electricity to the city at a discounted cost. The five sites are John F. Kennedy High School and Herbert Lehman High School, both in the Bronx; the Department of Sanitation's Manhattan District 12 garage; and two locations in Staten Island: the Department of Environmental Protection's Port Richmond wastewater treatment plant, and the Staten Island Ferry Bay Street Maintenance Building.

According to city officials, the five facilities selected for the program have characteristics needed for successful solar power generation, including large, flat new roofs; unobstructed access to the sun; and the structural integrity and appropriate electrical connections to accommodate a rooftop solar array.


Source:   Solar Industry

Centrosolar, Zep Solar Enter Licensing Agreement

Hamburg, Germany-based Centrosolar AG has signed a license agreement with Zep Solar Inc., based in San Rafael, Calif. Zep Solar provides mounting products for installing photovoltaic systems, enabling modules with a specialized Zep Groove frame to be installed quickly and easily, according to the companies.

Centrosolar will manufacture Zep-compatible modules in its own production plant in Wismar, Germany. Additionally, the companies have agreed to work in close cooperation for the development and marketing of Zep products in Europe.

As part of the agreement, the development teams of both companies have adapted Zep Solar's standard frame profile specifically for Centrosolar to make the best use of materials and to suit the requirements of European roof applications. As one of Zep Solar's European partners, Centrosolar will launch the Zep-compatible modules in Germany and other European countries.


Source:  Centrosolar




View:   Reducing installation costs and speeding up installation are important elements in reducing the overall cost of a solar project.

San Diego Pilot Program Opened The Doors For Calif. Solar Thermal Market

The California Solar Water Heating Pilot Program, which operated in the San Diego area during 2007-2009, helped drive a statewide program for rebates for solar thermal applications, according to a new report from the California Center for Sustainable Energy (CCSE). CCSE administered the pilot program for the California Public Utilities Commission (CPUC).

More than 340 residential and commercial solar water heating systems were installed in the San Diego region during the 30 months of the pilot program, with rebates totaling nearly $540,000. Funding for the rebates came from the CPUC and utility ratepayers statewide.

Based on the success of the pilot program, the CPUC established a statewide solar water heating rebate program under the California Solar Initiative (CSI) called CSI-Thermal in January 2010. The commission allocated $350.8 million, with the goal of installing 200,000 systems in the state by 2017. CCSE administers the CSI-Thermal program in the San Diego Gas & Electric service territory.

In addition to providing rebates of up to $1,500 for residential solar water heating systems and $75,000 for commercial installations, the pilot program was designed to gather data to evaluate the effect of incentives on the adoption and marketing of the technology, according to CCSE.

The report shows that single-family homes that installed solar water heating experienced an average monthly utility bill savings of $11.29 for displacing natural-gas water heating and a savings of $41.08 when displacing electric water heating.

The report also found that single-family participants appeared to be driven to install solar water heating slightly more by environmental concerns, whereas commercial/multifamily residential owners were driven mostly by financial interests. Increasing energy costs, concerns about greenhouse gas emissions and improved technology were found to be contributing factors to increasing interest in solar water heating.

One of the major conclusions was that solar water heating and solar photovoltaic generation, in combination, offers a faster path toward a true zero-energy home, CCSE adds.

"We believe that an opportunity exists to combine incentives and outreach for solar water heating and PV in ways that provide consumers with increased options for managing electricity and natural-gas consumption and increased greenhouse gas emission reductions," says Jordan DiGiorgio, CCSE program manager for solar water heating.

The report was prepared for CCSE by Itron Inc. of Davis, Calif. A copy of the report and additional information about the current CSI-Thermal program and rebates can be obtained online.

Photo: Solar thermal installation at Peninsula Station, a multifamily property in San Mateo, Calif. Credit: SunWater Solar

Toronto Schools Installing Solar on 450 Rooftops

Toronto District School Board (TDSB) trustees have approved an agreement with solar power producer Amp Solar Ltd. that will see solar panels installed on 450 school rooftops while offsetting the costs of major roof maintenance.

When fully installed, the panels will generate between 58 MW and 66 MW of electricity each year, according to the TDSB. The power will be sold into the distribution grid for use by Ontario energy consumers, including TDSB schools.

The final number of solar array installations will be determined through the Government of Ontario's feed-in-tariff process, with application approvals expected next month.



Source:   TDSB

California Prisons Adding 23 MW Of Solar Power With SunEdison

The California Department of Corrections and Rehabilitation (CDCR) has entered into five agreements that will add nearly 23 MW of on-site solar-generated power at the Chuckawalla Valley State Prison and Ironwood State Prison in Blythe, Calif.; Correctional Institution in Tehachapi, Calif.; North Kern State Prison in Delano, Calif.; and California State Prison, Los Angeles County, in Lancaster, Calif.

The expansion is anticipated to save taxpayers more than $55 million over the life of the contracts, according to CDCR. Construction and maintenance will be arranged by SunEdison, using no state general-fund tax dollars. The costs of the projects are further reduced by incentive dollars from California's investor-owned utilities, through the California Solar Initiative program administered by the California Public Utilities Commission.  

The new projects will add more than 83,000 solar panels on the grounds of the five prisons, with construction expected to begin in 2012. 


Source:  CDCR

Seattle Seahawks Installing Solar Array At Home Field

The Seattle Seahawks, Sounders FC, and First and Goal Inc. plan to install a PV array on the roof of the Qwest Field Event Center, home of the Seahawks.

The project will consist of 3,750 individual solar panels manufactured in the U.S. by California-based Solyndra Corp. The modules will take advantage of the facility's new white cool roof, which conserves energy by reducing the amount of heat absorbed by the roof surface and lowering the need for building cooling. The system will cover over 2.5 acres, or approximately 80% of the Event Center's roof.

The panels are projected to generate over 830,000 kWh of electricity annually. The system is expected to be fully operational in late summer.


Source:   Seattle Seahawks

Sungevity Enters In-Store Partnership With Lowe's

Lowe’s, the world’s second largest home improvement retailer, and Sungevity, the nation’s fastest growing residential solar company today announced a new agreement that will offer homeowners the easiest and most affordable solar solutions in the marketplace, marking a significant step in the mainstream adoption of residential solar.

Through the agreement, Lowe’s will provide consumers with Sungevity’s quick, easy and proprietary iQuote, a process that utilizes satellite images and aerial photography to calculate a same-day, firm installation estimate, eliminating the need for a home visit. As part of the interactive, in-store experience, consumers will be able to view a rendering of the proposed installation and get a firm understanding of the cost-savings related to Sungevity’s innovative solar lease program. Customers typically experience an immediate savings on their electricity bills through Sungevity’s solar lease, which includes monitoring, maintenance, repairs, insurance, and a money-back performance guarantee. Additionally, as part of the agreement, Lowe’s has taken an equity position in Sungevity.

The partnership will commence with interactive Sungevity branded displays in select Lowe’s stores, beginning Summer 2011, and continue to roll-out at all Lowe’s stores in states where Sungevity provides services. Sungevity currently operates in eight states, including Arizona, California, Colorado, Delaware, Maryland, Massachusetts, New Jersey and New York.

Additionally, as part of the agreement, Lowe's has taken an equity position in Sungevity.

Source:   Sungevity

Trina Solar Signs 130 MW Module Deal

Trina Solar Ltd. says its subsidiary Trina Solar (Germany) GmbH has signed a sales agreement with Mohring Energie GmbH, a Germany-based project developer and engineering, procurement and construction services company. Under terms of the agreement, Trina Solar is expected to deliver to Mohring 130 MW of the company's solar modules in the second and third quarter of this year. Initial shipments have already commenced. Source:  Solar Industry

850 US Utilities Have Green Energy Programs - Get the Details

The U.S. Department of Energy's (DOE) National Renewable Energy Laboratory (NREL) has released its annual assessment of utility green power programs, which ranks utilities in several green power categories.

NREL used information provided by utilities to rank them in the following categories: total sales of renewable energy to program participants, total number of customer participants, the percentage of customer participation, green power sales as a percentage of total utility retail electricity sales, and the lowest price premium charged for a green power program using new renewable resources.

Ranked by renewable energy sales (kWh/year), Austin Energy in Austin, Texas, sold the largest amount of renewable energy in the nation through its voluntary green power program. Rounding out the top five were Portland General Electric (Oregon), PacifiCorp (Oregon and five other states), the Sacramento Municipal Utility District (California), and Xcel Energy (Colorado, Minnesota, Wisconsin and New Mexico).

Ranked by the percentage of customer participation, the top utilities are City of Palo Alto Utilities (California), with more than 20% of its customers participating in its green power program, followed by Portland General Electric, Farmers Electric Cooperative of Kalona (Iowa), Madison Gas and Electric Co. (Wisconsin), and the Sacramento Municipal Utility District.

According to NREL, more than 850 utilities across the U.S. offer green power programs, and green power sales from utility programs exceeded 6 million MWh in 2010. Wind energy now represents more than three-fourths of electricity generated for green-energy programs nationwide. In addition, more utilities are also developing community solar programs.

The assessment was performed by NREL's Strategic Energy Analysis Center, which integrates technical and economic analyses and leads NREL's efforts in applying clean energy technologies to both national and international markets.

For more details on the rankings, click here.

Solar Is Not A Toy

Toys"R"Us Inc. plans to build what the company says is the largest rooftop solar power installation in North America at its distribution center in Flanders, N.J.

Staging for the system is currently under way, and construction will conclude this summer. Constellation Energy will build, own and maintain the rooftop solar power system.

Upon completion, the 5.38 MW on-site solar installation will occupy 869,294 square feet and is estimated to generate 72% of the electrical needs for the Toys"R"Us facility. The installation will cover nearly 70% of the distribution center's 1,281,000 square-foot roof and will consist of more than 37,000 UNI-SOLAR brand photovoltaic solar panels, manufactured by United Solar, a wholly owned subsidiary of Energy Conversion Devices.

Depending on weather conditions, the system is expected to produce approximately 6.36 GWh of electricity each year, according to Toys"R"Us. The company will purchase the electricity generated by the system from Constellation Energy through a 20-year power purchase agreement.



Source:  Toys"R"Us / Solar Industry

Centrosolar Canada Introduces PV Modules Optimized For Northern Climates

Centrosolar Canada, the Canadian subsidiary of Germany-headquartered CENTROSOLAR Group AG, has released the S-Series photovoltaic modules, which the company says are now available to local solar dealers and installers.

Engineered in Germany and manufactured in Ontario, Centrosolar Canada's S-Series is designed for both residential and commercial applications. The product meets the requirements of the Ontario feed-in-tariff program's domestic-content requirements.

According to Centrosolar Canada, the S-Series module is designed to deliver reliable and peak performance power levels in cloudy and lower-sun areas and under the weather conditions found in Canada, including ice, hail, snow, high winds and extreme temperatures. It features a chemical-resistant and flame-retardant backsheet and high-transparency, impact-resistant tempered glass.

The S-Series is powered by 60 polycrystalline high-efficiency silicon cells and comes standard with MC4 snap-connectors. The S-Series is also offered as part of Centrosolar Canada’s CentroPack system. 


Source:  Centrosolar

PV Panel Shipments Decrease For First Time In Two Years

PV module shipments declined in the first quarter of this year (Q1'11) - compared to the numbers seen the previous quarter - for the first time since the beginning of 2009. Prices have also begun to decline rapidly since the abrupt halt to demand in the booming Italian market, in the lead up to last week's announcement of Italy's new feed-in tariff (FIT).

According to the latest analysis of the global PV industry by IMS Research, global PV module shipments for the quarter declined by nearly 10%. Average prices, which had remained strong throughout 2010, supported by high demand from major European markets, also fell sharply.

Shipments and prices are forecast to continue their decline in the second quarter, with the prices of crystalline modules from Chinese tier-two suppliers falling the quickest.

Great uncertainty in the Italian market has been a significant factor in slowing the booming PV market, IMS Research says. Demand from Italy came to a standstill overnight when it was announced that the current FIT would be suspended. This development has led to high inventory levels and crashing end-market prices.

"Suppliers that are dependent on the Italian market saw demand for their products quickly evaporate when the feed-in tariff was suspended," says Sam Wilkinson, PV market analyst at IMS Research. "Many manufacturers rapidly adjusted production in an attempt to prevent stock from building.

"However, distributors were already stocking large amounts of product, and the total worldwide PV module inventory has now reached a record amount of over 10 GW in Q2'11," Wilkinson continues. "Many companies have already begun dumping prices in order to clear it."

The Italian government's May 5 confirmation of the country’s new incentive scheme is expect to "restart" 2010's second-largest PV market and slow the rapid decrease of prices. However, IMS Research predicts that long-term damage to investor confidence and caps to the subsidy scheme will mean that the Italian market will not reach its 2010 size again this year.

Despite the outlook in Italy, IMS Research predicts positive growth for the global PV module market this year, and full-year shipments are forecast to grow by nearly 20%, driven by continued demand from new gigawatt-scale markets, such as the U.S., and continued demand from European countries.


Source:  Solar Industry

Ikea Installes Large Solar Energy Array at California Distribution Plant

TEJON, Calif. — Swedish home furnishings giant Ikea powered up a solar energy system at a distribution center here that it says is the second-largest single-roof commercial system in the state and the sixth largest in the nation.

The 370,000-square-foot solar array consists of a 1.8 megawatt system designed and installed by California-based REC Solar and built with 7,980 panels.

The solar system will produce 2.88 million kilowatt hours of electric power annually, the equivalent of eliminating the emissions of 389 cars, or powering 241 homes yearly, Ikea reported in a press release.

It also contributes to the local utility's renewable portfolio goals.

"Having solar panels on the roof of this distribution center demonstrates that the company's sustainable commitment extends beyond our stores into all facets of the retail operations," said Martin Grieder, distribution operations manager for western North America, in the press release.

In the U.S., Ikea has solar energy systems in four stores and is installing them at nine other locations, including a Denver-area store opening this year that also will have a geothermal system.

The 1.8 million-square-foot Tejon Distribution Center opened in 2000 on 60 acres along Interstate 5 in Kern County.

Source:   Furniture Today

Renewable Energy Could Meet 80% Of Global Energy Supply Needs

Close to 80% of the world's energy supply could be met by solar power and other forms of renewable energy by mid-century if deployment is backed by the right enabling public policies, according to a new report from researchers working with the Intergovernmental Panel on Climate Change (IPCC).

The findings also indicate that the rising penetration of renewable energies could lead to cumulative greenhouse gas savings equivalent to 220 to 560 gigatonnes of carbon dioxide between 2010 and 2050. The upper end of the scenarios assessed, representing a cut of around one-third in greenhouse gas emissions from business-as-usual projections, could assist in keeping concentrations of greenhouse gases at 450 parts per million.

This change could contribute toward a goal of holding the increase in global temperature below 2 degrees C - an aim recognized in the United Nations Climate Convention's Cancun Agreements.

"The report shows that it is not the availability of the resource, but the public policies that will either expand or constrain renewable energy development over the coming decades," says Ramon Pichs, co-chair of Working Group III. "Developing countries have an important stake in this future: This is where most of the 1.4 billion people without access to electricity live, yet also where some of the best conditions exist for renewable energy deployment."

The six renewable energy technologies reviewed in the report are bioenergy, direct solar energy (including photovoltaics and concentrating solar power), geothermal energy, hydropower, ocean energy and wind energy. More than 160 existing scientific scenarios on the possible penetration of renewables by 2050, alongside environmental and social implications, were reviewed, with four analyzed in depth, the IPCC says.

Although the scenarios arrive at a range of estimates, the overall conclusions are that renewables will take an increasing slice of the energy market. The most optimistic of the four in-depth scenarios projects renewable energy accounting for as much as 77% of the world's energy demand by 2050 - up from just under 13% of the total primary energy supply in 2008.

The report concludes that although the proportion of renewable energy will likely increase even without enabling policies, past experience has shown that the largest increases come with concerted policy efforts. For instance, if environmental impacts such as emissions of pollutants and greenhouse gases were monetized and included in energy prices, more renewable energy technologies may become economically attractive.

Currently, direct solar contributes only a fraction of 1% to total global energy supply, the report adds. Potential deployment scenarios range from a marginal role of direct solar energy in 2050 to one of the major sources of energy supply. The actual deployment will depend on continued innovation, cost reductions and supportive public policies.

The full report is expected to be made available here after May 31.


Source:  IPCC (Intergovernmental Panel on Climate Change)

First Solar, China Power Sign New Agreement

First Solar Inc. and China Power International New Energy Holding Ltd., a wholly owned subsidiary of China Power New Energy Development Co. Ltd., have signed a strategic cooperation framework agreement to collaborate on solar photovoltaic projects in China, the U.S. and other international markets.

Under the terms of the agreement, First Solar and China Power will initially explore collaboration on solar PV projects in China and identify project investment opportunities for China Power in the U.S. and other global solar markets.

The companies state that they will leverage China Power's role as a renewable energy developer in China, including China Power's planned 2 GW of solar in China by 2020, and First Solar's experience as a global solar PV technology company, including its 2.4 GW pipeline in North America.


Source:  Solar Industry

Colorado Legislature Votes To Reduce Solar Installation Permit Fees

Costs to install solar technology are set to decrease in Colorado under the Fair Permit Act (H.B.1199), which has been approved by the State Senate. This legislation prevents state and local government agencies from charging excessive permit fees and plan review fees to customers installing solar electric or solar thermal systems, according to the Colorado Solar Energy Industries Association (COSEIA).

The Fair Permit Act limits solar permit and related fees to a local government's actual costs in issuing the permit, not to exceed $500 for a residential installation or $1,000 for a commercial system. This legislation also closed loopholes and improves transparency in the permit process.

The bipartisan legislation was sponsored by Rep. Bob Gardner, Sen. Bob Bacon and Sen. Shawn Mitchell. It now heads to Gov. John Hickenlooper’s desk to be signed into law.

Most solar installations require a permit from a local government or state agency, which can add about $2,516 per U.S. residential installation, on average, and can exceed $100,000 for large-scale installations, according to a recent national study cited by COSEIA. In Colorado, state permit fees more than doubled last year, and local fees and processes vary widely by region. In some communities, government permit costs can exceed the labor costs to install a solar system.

"While solar costs continue to decrease through innovation and efficiency, permit costs have actually increased over the past few years," says Neal Lurie, executive director of COSEIA."By keeping government fees low, this legislation helps promote economic development and save consumers money."


Source:  Solar News

Italy's New Solar FITs - A Quick Analysis

Following months of debate and speculation, Italian government officials have officially signed into law a new incentive structure for the country's Conto Energia, which sets solar feed-in tariffs (FITs).

According to the country's minister of economic development, these revisions will allow for the continued medium-term and long-term growth of the PV market while encouraging its self-sufficiency and minimizing the economic burden of FITs on individuals and businesses.

Beginning next month, when Conto Energia IV goes into effect, current FIT levels will be gradually reduced over the remainder of the year. However, in 2013, incentive levels will increase between five euro cents and 10 euro cents per kWh, according to an analysis by Germany-based market research firmEuPD Research. At this point, all other forms of funding for PV - including tax breaks and investment subsidies - will no longer be available.

The decree distinguishes between small systems and large systems, with rooftop installations under 1 MW and ground-mounted installations under 200 kW defined as small systems. A funding cap of 580 million euros is in effect from June 2011 to the end of 2012 for large systems. Under current pricing conditions, this level of funding would allow for an installed capacity of 2.69 GW.

In addition, Conto Energia IV provides a 5% FIT bonus to system operators that pay at least 60% of their investment costs (excluding installation costs) to companies in the European Union. "Asian and American producers will be hardest hit by this," EuPD Research predicts.

The impact and uncertainty of Italy's revised FIT structure are likely to be felt both in Italy and in the entire global PV market, according to market analysts from Jefferies & Co.

"While we believe the regulation is favorable for the PV industry in the second half of 2012 and beyond, the additional month of delay was extremely disruptive to the industry and will negatively impact second-quarter results for the group," the analysts wrote in a research note. "The question will be how quickly the Italian market can pick up." Another question is whether immediate demand pickup in Italy will prompt German buyers to accelerate their orders, believing that PV module prices have essentially reached their bottom.

Overall, however, the new Conto Energia is "substantially more positive than the first drafts and analyst expectations," the analysts wrote. In particular, encouraging components include the lack of a cap for rooftop installations up to 1 MW and the lack of a cap for ground-mounted systems up to 200 kW under self-consumption.

"This is positive to the original draft, which capped all ground-based systems regardless of size, but is a negative versus our last interpretation," the analysts noted. "Although farmers use electricity for pumping water and could benefit from this self-consumption regulation, and that farmers are a large market in Germany, we recommend that investors consider all ground based systems as capped until this market can be further studied."

Other analysts interpreted the entire decree more negatively. "Italy is no longer a big growth market," Wells Fargo analyst Sam Dubinsky told TheStreet.com.

"There have been so many subsidy proposals in recent weeks/months, it's tough to tell whether this one is any better or worse versus prior expectations," he continued. "In addition, with the market screeching to a halt due to subsidy uncertainty, any renewed growth is somewhat of an incremental positive. However, it is clear to us that Italy's growth prospects are dampened and the market can no longer carry the industry."

Italy's economic development ministry maintains that the ultimate effect will be positive and, in fact, predicts that the new Conto Energia will enable PV-generated electricity to reach grid parity in 2017.