The San Jose, California (US)-based research firm is also confident that feed-in-tariffs and investment subsidies will also play a major role in fostering this demand.
The report is entitled "Solar Panels: A Global Strategic Business Report".
GIA notes that in the wake of slowed demand for PV cells and panels at the depth of the financial economic crisis, new solar power grids are springing up across the globe.
In addition, it says, public utilities and private corporations have restarted efforts to integrate solar energy as part of their respective energy portfolios.
“An essential part of solar energy value chain, solar panels have always mirrored the trends in the overall solar energy sector, particularly status of solar PV installations,” the report says.
During the economic crisis, sluggish demand resulted in a significant inventory build-up starting from raw material silicon and PV cells to the complete PV systems, which ultimately led to considerable decline in prices of solar cells and panels, adding to the manufacturer's agony.
The decline in demand for solar cells and panels was harsher in Europe, as the market suffered a twin blow with Spain registering drastic reductions in PV installations during the year.
“However dramatic improvements in Solar PV installations across the globe in the year 2010, particularly in Europe and Asia-Pacific, ensured that cells and panels market staged a remarkable comeback in the year 2010,” GIA says. “Supportive government policies, especially feed-in-tariffs and investment subsidies have helped Western European nations such as Germany, Italy and the UK to achieve tremendous increase in solar PV installations in 2010, thus driving resurgence in demand for solar panels during the year.”
Of course, as is well known, solar’s “comeback” in 2010 has been considerably tempered in Europe by planned subsidy cuts in major markets and the potential of excess supply.
But as this is happening, the GIA says, the US, Asia-Pacific and even Latin America are expected to gather momentum, and even spearhead growth in the global market over the next few years.
“Continued policy adjustments, tightening incentive terms and uncertainty over continuation of Feed-In Tariffs for solar installations in major European markets are fast shifting the market dynamics away from the region and towards other regional markets,” the report says.
“Developing countries are emerging as torchbearers in the global solar power market,” it continues. “With a steady decline in the prices of PV power, mainly due to financial aids from developed countries and international organizations, solar energy is increasingly used in various developmental activities such as education, water supply, and healthcare.”
For additional information:
