The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

PV Equipment Spending Downturn to Reset Preferred Supplier Lists

PV equipment spending (including c-Si ingot-to-module and thin-film fabs) is forecast to decline to an eight-year low in 2013, as the industry reacts to the dearth of new purchase orders and de-bookings of the past 12 months.

Spending during 2012 has been dictated by accounting rules and the ability of company accounts-receivable departments to extract payment from manufacturers that placed ambitious tool purchase orders back in 2011 and were finally forced to receive and pay for equipment that they ultimately did not want or could not use in 2012.

But the main problem was lack of new purchase orders in 2012, and there is no great surprise here. Examples of PV manufacturers needing any additional capacity this year can be counted on one hand, and the volumes can be measured in the low 100’s of MW, not in GW. Add in the de-bookings, and 2013 is almost devoid of any meaningful backlog or pending revenues to be recognized.

Source: Adapted from NPD Solarbuzz PV Equipment Quarterly

PV equipment spending for 2013 is likely to be at the $2 billion level, a huge reduction from the $12-13 billion revenue opportunity last seen in the peak year 2011. Equipment spending is not the same as tool shipment in the PV industry. Equipment spending is revenue recognition, the only parameter that renders a tool shipment as ‘real’.

Equipment suppliers operating in adjacent segments will retain skeletal PV resources and R&D, and plan for the next upturn from 2014 onwards. Suppliers that were serving only the PV industry have almost no option but to hunker down for another 12 months, reduce operating costs to a minimum, and hope that investors and shareholders retain confidence in their long-term prospects and those of the PV industry as a whole.

While the news may sound rather bleak and depressing, the abrupt downturn has enabled a key inflection point to be reached, in which the legacy supply-chain for tooling to the PV industry has been wiped out. Therefore, any equipment suppliers that had fought to get into the supply-chain and failed have another chance! When PV equipment spending resumes, it will do so from a blank sheet of paper, and ultimately this will create many new opportunities with new tools in the coming years.

This article was originally published on NPD Solarbuzz and was republished with permission.

Lead image: Financial analysis via Shutterstock

Untitled Document

RELATED ARTICLES

Hybrid solar minigrid to power Tanzanian island village

Tildy Bayar

A hybrid solar photovoltaic-battery energy storage-diesel minigrid project aims to provide power for around 400 households in the remote island village of Lake Victoria (pictured) in Tanzania. 

World Moves Toward 100 Percent Renewable Energy – First Electricity, Then Heating/Cooling, and Finally Transportation

Junko Movellan, Correspondent The exclusive use of energy from renewable resources in at least one sector has now become a feasible goal for 8 countries. Diane Moss, Founding Director of Renewables 100 Policy Institute, discussed this remarkable develop...

Solar power growth impacting UK electricity sector

Diarmaid Williams

Q2 of 2015 saw a large increase in the generation of electricity from solar PV in the UK, with the growth having a significant impact on electricity market prices and other supply factors.

PACE Finance Opening Doors for C&I Solar In California

Susan Kraemer, Correspondent With its excellent renewable policy, California leads the nation in solar. Over the years both the Renewable Portfolio Standard and the California Solar Initiative drove utility scale and residential solar deployment. But w...
As Vice President, Dr. Finlay Colville leads the Solarbuzz team of analysts dedicated to PV market research and strategic consulting activities. Since 2010, he has co-authored the PV Equipment Quarterly report—now the industry’s leading resource f...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 4
1507REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

FEATURED PARTNERS



EVENTS

Grid-connected and Off-grid Photovoltaics

This training covers all aspects of planning, installation, maintenance,...

2015 Green Energy Expo

Stop by and visit Canadian Solar at the Green Energy Expo in Mexico City!

2015 Intersolar-South America

Canadian Solar will be exhibiting @ Intersolar-South America. Stop by an...

COMPANY BLOGS

Prevailing At A Premium

As efficiency sales professionals, we’re often faced with situatio...

Do Your Goals Match Your Values?

Before you set goals for your company or your personal work performance ...

LSX rises with sustainable wine making in Mexico

his custom LSX solar canopy shades the upper deck organic gard...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS