Countries

The market

The production of photovoltaic cells has increased to more than 5000 MW in 2009  , which is more than 60% over the previous year. The expectations for the coming years are also very high.

With an impressive annual growth rate since 2002 of 48 percent on average, the production of solar cells has doubled every two years, making it the fastest growing energy source in the world.

This means that the solar energy industry  has become the fastest growing industry in the world, with an expected annual   growth of at least 40% by 2011.

The average price of a solar cell module, exclusive   of installation and other system costs has dropped from about  USD100 per watt in 1975 to less than USD 4 per  watt  at the end of 2006. With increasing   production of poly silicone, the average price of solar cells is expected to decrease
further to  USD 1 per  watt in 2010-11.

By investing  now in such a market with state-guaranteed high subsidies over a period of many years,   one might very well find oneself in an interesting  future situation  where these solar parks  have increased their value,   as government subsidies for solar parks gradually decrease over the years.  As these subsidies are supposed to do.

We see this  with windmills,  where  second hand windmills where sold for a higher price than when they were erected.

To consider investments in a market  with such a dramatic growth rate  will, however, always be interesting. .

Growing concerns about the  declining oil resources, the volatile oil prices, and the alarming climate changes are leading to increased political  focus on renewable energy. Even though solar energy today is a very small player in the overall global energy market it is now evident that it is ready to take a more prominent position in the global energy economy.

Italy

In southern Italy the sun shines with a radiation per. square meter  of 1.700-1.850 kWh  per year, and it is therefore in the upper end of the scale in Europe.

The  feed in tariff all inclusive.  is 0,345 € per kWh . plus the current free market price for Power,

The state guarantee is valid for 20 years.

There is no indexing of the tariff, but for the free market price that indicates an Index of aprox. 20 % .

The reduction of the subsidies  in Spain  is likely to shift the focus to Italy.   Although Italy does not index the   feed in tariffs, the tariffs are basically higher than in Spain,, which makes Italy a future big market in the solar energy field the coming years.

France

France had a change in the Feed-In-Tariff system from January 2010, with the highest rate in the world for roof top mounted building integrated systems, so called BIPV.

For this BIPV on Hospitals, schools and Dwellings the FIT is 0,58 € per kWh, and on other buildings, such as Industial and Offices the FIT is 0,50 € per kWh.

For Green Houses and other new buildings, the FIT is 0,42 € per kWh.

For ground mounted systems the FIT is a variation from 0,314 € in the sunny South of France, to 0,377 € in the North.

There is a 20 % index, and a State Guarantee valid for 20 years.

France is therefore – as a market for Roof Top BIPV systems –  very lucrative, also when one take into consideration, that the Interest rate is somewhat lower in France than Italy, for a 17-18 years loan.