In September, there was a post to a solar industry Linked-In group suggesting that solar markets were declining and not very important. Quite a bit of recent GLOBAL evidence to the contrary has appeared in terms of money now moving in solar markets. Two of the world’s largest engineering giants, German conglomerate Siemens and US powerhouse General Electric (GE), have both committed to the renewable energy sector. Both have acquired high-profile Israeli solar energy firms. Siemens announced will acquire solar thermal power firm Solel Solar for what is nearing a half BILLION dollars ($418 million). The buyout is subject to regulatory approval, but Siemens said it is confident the acquisition can be completed before 2010. Israel-based Solel is one of the world’s leading providers of giant mirrors, which are used in parabolic trough solar thermal systems. The company posted sales of almost $90 million in the first six months of this year and has operations in a number of key solar thermal markets, including Spain and the US. Siemens’ President suggests that they want to replicate their success in the wind energy market. They are estimating a Solar Thermal market worth €20 billion PER YEAR by 2020. Siemans is also a member of the Desertec coalition of German blue chip firms exploring large scale solar farms in North Africa that hopes to export energy to Europe. GE announced it has spent an undisclosed sum as part of a $23 million funding round for Israeli solar start- up SolarEdge. The company provides an automated management system for photovoltaic solar panel arrays designed to ensure each panel is able to maximize power output. GE also took a piece of US smart grid firm Tendril and announced that it was aiming to boost its investment in renewable energy generation from the current level of $4 billion to $6 billion by the end of 2010. Just some “smart billions” among friends. Let’s look at California, since they are one of the largest economies in the world and the government is complaining it’s broke. You’d think this would mean that they would stop investing in solar if anyone would. Sempra Energy and PG&E both announced large new solar commitments in October (2009) with Sempra planning to build up to 500MW of its own new solar-power plants in the next few years and PG&E signing contracts to buy a whopping 830MW of new solar. PG&E wants to add 500MW of ground-mounted solar-power systems and Sempra subsidiary San Diego Gas & Electric has applied for approval for 70-80MW of ground-mounted solar panels. Another California utility, Southern California Edison, has gotten approval to add 500MW of rooftop solar projects, and both SCE and PG&E have signed deals for huge solar-thermal projects, including 1.3GW and 1.31GW contracts from BrightSource, respectively. Residential and commercial installations appear tiny in terms of capacity, although there are many more of them. In the first quarter of this year, for example, the California Solar Initiative announced that its participants installed a record total of 78MW at more than 3,600 sites. The leap in utility solar development has been even more pronounced because it comes at a time when it’s been so difficult for other large solar-project developers to raise money. Recession financing has remained scarce, and while federal cash grants are beginning to help, most of those have gone to wind projects so far. But we see a helio-tropic shift coming. It’s not a coincidence that utilities have begun driving the solar market at the same time that they have become eligible for the first time for federal tax credits and cash grants. Those incentives have made it feasible for them to build their own plants, instead of financing them through power-purchase-agreement providers that own and operate the plants. Some entrepreneurs worry that big utilities could monopolize the industry instead of encouraging competition within the market. I expect many of these utilities will also help the economy by hiring clean tech research firms like Research 13 to evaluate the markets and show the positive impact of solar pushing prices downward for all as the demand for systems increase in the long run. Although a small measure to some, the CPUC has addressed this concern by making sure that utilities buy solar energy from developers, making them customers as well as competitors. The Govenator has been busy this month keeping his wife off of the cell phone, and he’s been out of the sunlight as First Lady Maria promotes her new book about women in the workplace. While this month appears to be Maria’s month, last month the Gov. raised the state goal, requiring utilities to get one third (33%) of their electricity from renewable sources by 2020. That’s ambitious, even for Hans and Frans, considering that utilities are expected to fall short of the previous goal of 20 percent by 2010. You don’t get to be one of the world’s biggest box office stars and marry into the Kennedy family without an ambitious plan. Let’s not forget China who is producing half of the solar PV panels. China is reportedly spending $230 billion in stimulus money on “green infrastructure.” That’s 40% of China’s stimulus package is going to the green economy. There’s a big push to get a domestic solar market. They started off in March with the Solar Roofs Program and then in late July they announced the Golden Sun project, which is more utility-level. So with just the California “warm California sun” plans and the Chinese “Golden sun” program, things are, eh, sunny and bright. Of course a little more exploring of the gentleman who said solar was going to decline reveals that he was part of the petro-chemical industry. They’ve owned energy for a long time, so I’m not surprised it’s hard to believe for him. However, I think he might also thin the sun rises in the morning (the earth actually spins once every 24 hours and takes 365 days to get around the sun). Sources: Business Green, Aimeebarnes.com, Environmental Leader, Earth2Tech, Earth Stream, Research 13

2008 was a record year for PV solar industry in Spain as far as installed power, new employments and investments are concerned. 2009 will be considered as a record pessimistic year for the same business. In the first six months of 2009, 28.000 people have already lost their job and not owing to the world economic crisis.

The origin of this negative year resides in a law made by Zapatero’s administration in 2008: namely RD 1578/2008. RD 1578/2008 replaces RD 661/2007 that had just been implemented the year before by the same government. The new RD changes the following:

* Introduction of a yearly share for installed power
* Average FIT (Feed-In Tariff) reduced from .47€/kWh to .29€/kWh.

The consequence has been a rush by the industry to install and sell as much as possible before its putting into force. Between January and September 2008 2,700 MW were deployed in Spain, an increment of 385% over 2007. Spain became the country with the largest PV park installed. The case looks from top to bottom singular for 2009. A mere 200 or 250 MW will be set up. The industry will loose one third of its 42,000 direct jobs. The total funding go down from 16,000 million € to 1,600 million €.

The socialist government, again, proved insufficiency of insight and  weak arrangements. They bred a speculative tendency by offering kind Feed-In Tariffs, only to reduce them only one year later on; accordingly, turning into losing any investment made by operators in the business. This includes stocks, signing up and preparing, as well as company development and foundation. The FIT created in RD 661 did not allow for the price of energy and contributed to the broad deficit of the energy industry. And the new FIT lauched in RD 1578 is exceptionally conformist and has affected a crisis in the industry.

The expenditure for production of PV energy keeps reaching lower and lower due to advances in technology. This is particularly accurate with concentrated photovoltaics that moderate greatly the amount of silicon crystals indispensable. It appears likely that in a matter of two to three years the photovoltaic set up in Spain during 2008 may look archaic and expensive.

2008 was a record year for PV solar industry in Spain as far as installed power, new jobs and investments are concerned. 2009 will be brought to mind as a excessively pessimistic year for the same business. In the first six months of 2009, 28.000 people have already lost their job and not because of the world economic crisis.

The cause of this depressing year lies in a law made by the socialist administration in 2008: namely RD 1578/2008. RD 1578/2008 changes RD 661/2007 that had just been put into force the prior year by the same administration. The new law changes the following:

* Introduction of a yearly allowance for installed power
* Average FIT (Feed-In Tariff) dropped from .47€/kWh to .29€/kWh.

The effect has been a rush by the industry to install and sell as much as possible before its coming into force. Between January and September 2008 2,700 MW were set up in Spain, an increment of 385% over 2007. Spain became the country with the largest PV park deployed. The situation looks from top to bottom different for 2009. A mere 200 or 250 MW will be set up. The industry will loose one third of its 42,000 direct jobs. The entirety of funding dismount from 16,000 million € to 1,600 million €.

Zapatero’s administration, again, showed insufficiency of insight and  frain preparation. They produced a speculative leaning by proffering munificent Feed-In Tariffs, only to reduce them simply one year afterwards; thus, leaving unprofitable any investment made by operators in the business. This includes reserves, engaging and teaching, as well as company growth and formation. The FIT started in RD 661 did not take into account the fee for energy and contributed to the general shortage of the energy industry. And the new FIT established in RD 1578 is exceptionally middle of the road and has affected a crisis in the industry.

The price tag of production of photovoltaic energy keeps dropping lower and lower due to progresses in technology. This is mainly accurate with concentrated photovoltaics that lower very much the quantity of silicon crystals needed. It looks probable that in a matter of two to three years the photovoltaic installed in Spain during 2008 may appear superseded and expensive.