{"id":21764,"date":"2011-06-17T08:00:45","date_gmt":"2011-06-17T12:00:45","guid":{"rendered":"http:\/\/www.investmentu.com\/?p=20789"},"modified":"2011-06-17T08:00:45","modified_gmt":"2011-06-17T12:00:45","slug":"solar-power-industry-outlook","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/06\/17\/solar-power-industry-outlook\/","title":{"rendered":"Solar Power Industry Outlook"},"content":{"rendered":"

Solar Power Industry Outlook<\/a><\/p>\n

by Tony D’Altorio<\/a>, Investment U<\/em> Research
\nFriday, June 17, 2011<\/p>\n

GTM Research forecasts that global solar installations will rise from about 17,400 megawatts in 2010 to 20,900 megawatts this year. And for 2015, GTM predicts that solar installations will increase to 35,500 megawatts.<\/p>\n

Most of these installations will probably take place in China, according to a report released six months ago by a HSBC research team that traveled to China.<\/p>\n

In the report, HSBC said that the country was on track to outstrip its own aggressive government targets for clean energy, solar energy included, by 50 percent in 2015. By 2020, HSBC expects China to install about 20 gigawatts of solar power facilities.<\/p>\n

Solar Demand Wanes as Production Amps Up <\/strong><\/p>\n

While interest in the solar industry<\/a> is at a new high, it’s a different story for the companies trying to make a profit from solar power.<\/p>\n

The outlook isn’t sunny. Surprisingly, demand for modules and other parts is slowing just as production capacity is ramping up.<\/p>\n

Shares in some of the world’s leading solar manufacturers like First Solar <\/strong>(Nasdaq: FSLR<\/a>) and Trina Solar <\/strong>(NYSE: TSL<\/a>) fell by about 10 percent this year, due to concerns about oversupply and falling prices. .<\/p>\n

And rightly so…<\/p>\n

GTM Research estimates that industry production capacity for solar modules will increase by 115 percent this year and 134 percent in 2012, due to Chinese manufacturers increasing production.<\/p>\n

This is leading to a supply glut of solar components and tumbling prices. For example:<\/p>\n