Asia Pacific Solar Photovoltaic Markets Soar In 2011

Asia Pacific photovoltaic (PV)
markets continue to surge ahead of expectations, installing 2.8 GW in
Q4'11 and a total of 6 GW in FY'11. The region as a whole grew
165% Y/Y, and is forecast to grow an additional 40% in 2012, according to
the latest NPD Solarbuzz Asia Pacific Major PV
Markets Quarterly report.

China has emerged as the dominant
force in the region, growing by 500% over 2010 levels with 48% of
2011 demand.  A planned year-end 13% FIT reduction led to a surge in Q4'11
installations, reaching 1.7 GW. Low factory gate module prices and favourable
project returns led to a flurry of installations, while the project pipeline
has now grown to 20 GW.

"The China PV market was reshaped in
2011 by the release of the national FIT," said Ray Lian, Analyst at NPD Solarbuzz, "Approximately
1 GW ground mount projects were installed in the Qinghai province alone.
However, the explosive growth could well be followed by policy adjustments in
2012 as the Chinese central government takes action to control the growth
rate." In 2011, Japan was the second largest regional market in Asia Pacific, followed
by Australia and India.

Q4'11 installations in Japan were up
slightly from Q3'11 levels, with residential segment having more than a 70%
share of demand. The 2011 Japanese market was up 30% Y/Y, reaching
1.2 GW, and is poised to grow an additional 40% in 2012. Though the
government recently approved a new FIT law aimed at spurring demand for
large-scale PV projects, 2012 rates have yet to be announced. While the lack of
clarity on the new FIT has held back execution on these projects, the new law
has stimulated development activity. The market is also being reshaped by a
dramatic increase in the number of foreign module suppliers.

Installations in India surged 125% in
Q4'11, as project developers raced to meet installation deadlines that trigger
during Q1'12. Though many of the approved projects are still facing delays,
Q1'12 could see more than 600 MW connected to the grid under the National
Solar Mission and Gujarat Solar Policies. Receiving a temporary reprieve from
regulators, projects under the Gujarat Solar Policy were recently granted a
one-month extension. In 2012, the Indian market could begin to approach
1 GW, fueled by new installations under the National Solar Mission and new
state-level policies.

"While rapid PV price declines
have greatly improved project economics over the course of 2011, many Indian
developers have suffered setbacks due to difficulties associated with financial
closure, land acquisition, and power evacuation facilities. Now developers will
need to race to meet their installation deadlines or face the prospect of
losing their PPAs, leading to a surge of activity in December and
January," added NPD Solarbuzz
analyst Chris Sunsong.

The region's third largest market is
trending in a different direction. Australia's PV installations fell
10% Q/Q. Q1'12 installations are forecast to decline an additional 20%, as
the market readjusts to the termination and reduction of a number of incentive
policies in 1H'11. The FY'12 market is forecast to fall by 30%; however, the
market is forecast to pick up in 2013 as large-scale ground-mounted systems
begin to come online. The retrenchment of solar PV incentive policies across
the country has left many downstream installers stranded with evaporating
demand and many firms have ceased operations.

While the availability of low-priced
Chinese PV modules has led to rapidly decreasing installed system costs it also
led to Silex Solar ceasing all manufacturing activities during Q4'11.

Other emerging markets in Asia accounted for an
additional 500 MW of demand in 2011, largely driven by Thailand, Korea and
Taiwan. This figure is expected to increase by more than 50% in 2012, along
with the emergence of new markets in Malaysia and the Philippines. .

The new Asia
Pacific Major PV Markets Quarterly report comprises a 150-page PowerPoint
report, an Excel data summary, and PolicyTracker, a comprehensive Excel-based
database showcasing each country's incentive policies.

Source: Solarbuzz

Graph Source: NPD Solarbuzz Asia Pacific Major PV Markets Quarterly report