News Article
Spanish Strength
Premier Power continues growth and profitability in Spain despite crash of Spanish solar market
Premier Power Continues Dramatic Growth and Profitability in Spain Despite Crash of Spanish Solar Market.
Despite the once hot Spanish solar farming market coming to a grinding halt, Premier Power Renewable Energy's business in Spain will grow by more than 200 percent this year with future prospects increasingly bright. ASIF, a Spanish solar PV industry association, estimates that the commercial rooftop market will become the leading market segment in Spain, growing to more than 4.4 gigawatts over the next 10 years.
When the architects of the Spanish feed-in tariff program set out to incentivize solar energy production in 2000 and 2004 they anticipated a program that would make Spain the world leader in solar energy production. Instead, the system inadvertently created a solar gold rush with developers from across Europe racing to get as many solar modules put into the ground as quickly as possible before the initial feed-in tariff program ended in 2008. That gold rush mentality, which included many developers without any energy project development expertise, has resulted in more than 1,000 megawatts of currently inactive systems dotting the countryside.
Despite its growing pains, Spain remains one of the world's best markets for solar energy production. Its combination of high radiation and energy costs provide the basis for a sustainable, successful industry. However, the real opportunity in Spain was never large scale solar farming, which grew out of an exploited weakness in legislation that attracted speculators. The real opportunity lies with rooftop and building integrated photovoltaic (BIPV) systems that are easily integrated into existing energy transmission infrastructure and that eliminate problems of grid instability and power loss that have long been the concern of utilities.
"Many of the project developers that failed simply lacked the skill sets required for success in an industry as technical as solar energy production. Sixty percent of Spain's expected solar energy target still remains unmet," said Bjorn Persson, general manager, Premier Power Spain. "The new tariff program has been met with a clear and swift reaction from the commercial and industrial businesses of Spain. We're seeing tremendous demand for rooftop and building integrated systems. For us, the solar market in Spain is just getting started."
While the feed-in tariff program is spurring demand for rooftop systems, economics and technology innovation in the photovoltaic industry are also greatly improving market conditions. Module prices, which were artificially inflated during the solar farming frenzy, have returned to earth. Oversupply from production overcapacity and a hot resell market for unused modules previously installed on unfinished solar farms are expected to push panel prices even lower. At the same time module prices are decreasing, further innovation and experience is helping to drive installation costs lower.
"We've deployed rooftop systems for more than a decade and we're still seeing a steep cost reduction curve on nearly every project we complete," said Dean Marks, CEO, Premier Power. "The lesson is that all rooftop projects are not created equally. Engineering and design expertise are crucial to succeed in the solar business."
Premier Power's global experience allows it to import best practices from around the world and employ cutting edge technology that reduce costs and increase production in any application. Premier Power recently deployed the largest dual-axis tracker system in the U.S., technology it imported from Spain. Premier Power Spain is currently installing the world's largest Solyndra rooftop installation in Europe in Madrid. In addition to Solyndra, Premier Power is leading the way with other non-penetrating rooftop systems and BIPV solutions that are helping to forge new markets throughout Europe.
Bjorn Person: "Through our rooftop solutions we are literally producing the energy at the very location it is being used - pollution free. The beauty of solar is that the production from solar energy peaks simultaneously when energy demand peaks. As the sun heats up into the midday, power demand increases. With the sun higher in the sky, solar output from our rooftop solutions increases as well. Further the rooftop solar solutions offer other incidental advantages as they can create insulation and shading that further reduces heat and energy cost."
Premier is aggressively pursuing additional opportunities to accelerate growth in established and emerging markets of Europe, North America and around the world.
Despite the once hot Spanish solar farming market coming to a grinding halt, Premier Power Renewable Energy's business in Spain will grow by more than 200 percent this year with future prospects increasingly bright. ASIF, a Spanish solar PV industry association, estimates that the commercial rooftop market will become the leading market segment in Spain, growing to more than 4.4 gigawatts over the next 10 years.
When the architects of the Spanish feed-in tariff program set out to incentivize solar energy production in 2000 and 2004 they anticipated a program that would make Spain the world leader in solar energy production. Instead, the system inadvertently created a solar gold rush with developers from across Europe racing to get as many solar modules put into the ground as quickly as possible before the initial feed-in tariff program ended in 2008. That gold rush mentality, which included many developers without any energy project development expertise, has resulted in more than 1,000 megawatts of currently inactive systems dotting the countryside.
Despite its growing pains, Spain remains one of the world's best markets for solar energy production. Its combination of high radiation and energy costs provide the basis for a sustainable, successful industry. However, the real opportunity in Spain was never large scale solar farming, which grew out of an exploited weakness in legislation that attracted speculators. The real opportunity lies with rooftop and building integrated photovoltaic (BIPV) systems that are easily integrated into existing energy transmission infrastructure and that eliminate problems of grid instability and power loss that have long been the concern of utilities.
"Many of the project developers that failed simply lacked the skill sets required for success in an industry as technical as solar energy production. Sixty percent of Spain's expected solar energy target still remains unmet," said Bjorn Persson, general manager, Premier Power Spain. "The new tariff program has been met with a clear and swift reaction from the commercial and industrial businesses of Spain. We're seeing tremendous demand for rooftop and building integrated systems. For us, the solar market in Spain is just getting started."
While the feed-in tariff program is spurring demand for rooftop systems, economics and technology innovation in the photovoltaic industry are also greatly improving market conditions. Module prices, which were artificially inflated during the solar farming frenzy, have returned to earth. Oversupply from production overcapacity and a hot resell market for unused modules previously installed on unfinished solar farms are expected to push panel prices even lower. At the same time module prices are decreasing, further innovation and experience is helping to drive installation costs lower.
"We've deployed rooftop systems for more than a decade and we're still seeing a steep cost reduction curve on nearly every project we complete," said Dean Marks, CEO, Premier Power. "The lesson is that all rooftop projects are not created equally. Engineering and design expertise are crucial to succeed in the solar business."
Premier Power's global experience allows it to import best practices from around the world and employ cutting edge technology that reduce costs and increase production in any application. Premier Power recently deployed the largest dual-axis tracker system in the U.S., technology it imported from Spain. Premier Power Spain is currently installing the world's largest Solyndra rooftop installation in Europe in Madrid. In addition to Solyndra, Premier Power is leading the way with other non-penetrating rooftop systems and BIPV solutions that are helping to forge new markets throughout Europe.
Bjorn Person: "Through our rooftop solutions we are literally producing the energy at the very location it is being used - pollution free. The beauty of solar is that the production from solar energy peaks simultaneously when energy demand peaks. As the sun heats up into the midday, power demand increases. With the sun higher in the sky, solar output from our rooftop solutions increases as well. Further the rooftop solar solutions offer other incidental advantages as they can create insulation and shading that further reduces heat and energy cost."
Premier is aggressively pursuing additional opportunities to accelerate growth in established and emerging markets of Europe, North America and around the world.
