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
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
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
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 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
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.
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
