China PV Market Set to Boom as Government Raises 2015 Installation Target to 21GW

Although the outlook for PV demand in China is positive, price erosion is set to continue in 2012 as overcapacity still exists in the polysilicon, wafer, cell and module supply chain

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Wellingborough, U.K. (16 July 2012) – Photovoltaic (PV) installations in China are set to reach over 4 gigawatts (GW) in the second half of the year, according to a new report from IMS Research (recently acquired by IHS Inc. (NYSE: IHS)). The latest version of China’s Five-Year-Plan for the PV industry reveals that China’s regulatory and planning body, NDRC, has lifted its installation target from 15 GW to 21 GW by 2015. This positive guideline will further stimulate the rapid growth of China’s PV market from 2012 to 2015, according to IMS Research’s new quarterly report on PV supply and demand in China.

With European demand set to shrink from the second half of 2012, China’s domestic market will become increasingly important. China’s latest move will help to support the huge amount of production capacity added by Chinese suppliers in the last two years by expanding domestic demand. According to IMS Research’s new report, China’s c-Si PV module capacity reached 32.6 GW in Q1’12, while full year global installations are forecast to reach just 30.6 GW.

Besides the large pipeline of ground-mount utility scale PV stations located in China’s desert regions, commercial installations are forecast to increase their market share by 13 percent in 2012. “A more diverse range of system types will emerge in 2012, largely driven by China approving 1.7GW of projects under the Golden Sun Scheme,” commented Frank Xie, senior PV market analyst and report author. “IMS Research predicts that 1 GW of Golden Sun projects will be completed by year end, and that medium and large commercial rooftop installations will reach 850 MW in 2012.”

The promising future has created huge opportunities for PV suppliers in China. “Although the Chinese government has implemented tighter project approval regulations in 2012, system integrators have submitted a huge amount of applications. With the prospect for 5 to 7 GW of PV installations in 2012, PV module shipments to installations in China in 2012 are predicted to be more than double that of 2011,” continued Xie. “Inverter companies will have similar opportunities, and the base of domestic suppliers has grown rapidly in recent years with China now home to over 200 inverter suppliers.”

Although the outlook for PV demand in China is positive, price erosion is set to continue in 2012 as overcapacity still exists in the polysilicon, wafer, cell and module supply chain. According to the report, in the first quarter of 2012, the average prices of wafers and polysilicon both fell by 11 percent compared to the fourth quarter fo 2011, and are forecast to continue falling in the second quarter of 2012.

 

For more information please contact:

IMS Research: Sam Wilkinson, Senior Research Analyst, T: +44 1933 402255,

Twitter: IMSResearch_PV

Contact details:

IHS Media Relations

Tel: +1 303 305 8021

Alternative Contacts:

Europe

Stacey May

, Tel: +44 1933 402 255

US

Stacy Hackenberg

Tel: +1 512 302 1977

Asia Pacific

Yvonne Zhang

Tel: +86 21 6720 1823

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About The China PV Market – Supply and Demand Quarterly report

The China PV Market – Supply and Demand Quarterly is IMS Research’s first consolidated industry report about China’s PV industry. It tracks the true supply and demand dynamics of China’s PV industry. Key information contained in this report includes:

·         PV Modules, Cells, Wafers, Polysilicon & Inverters

·         Shipments and Revenues

·         Production

·         Capacity

·         Prices and Costs

·         Supplier and Channel Inventory Levels

·         Quarterly & Annual PV Installations

·         Details of major PV projects

·         Profiles of leading suppliers and system integrators

About IHS Inc. (www.ihs.com)

IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today's business landscape.  Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence.  IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005.  Headquartered in Englewood, Colorado, USA, IHS employs more than 6,000 people in more than 30 countries around the world.

About IMS Research (www.imsresearch.com)

IMS Research, recently acquired by IHS (NYSE: IHS), is a leading supplier of market research and consultancy to over 2500 clients worldwide, including most of the world’s largest technology companies. Established in the UK in 1989, IMS Research now has dedicated analyst teams focused on the factory automation, automotive, communications, computer, consumer, display, financial & ID, LED & lighting, medical, power & energy, solar PV, smart grid and security markets.  Currently publishing over 350 different syndicated report titles each year, these in-depth publications are used by major electronics and industrial companies to assess market trends, solve marketing problems, and improve the efficiency of their businesses.