The installed capacity of photovoltaic (PV) solar technologies more than doubled during 2008, despite the onset of global recession in the second half of the year.
That is the conclusion of a major new report from US solar industry consultancy Solarbuzz, which also confirmed that increased supplies of polysilicon combined with the impact of the recession has led to a significant fall in the price of solar cells during the first few months of this year.
The report found that the global PV industry generated $37.1bn (£26.5bn) in revenues last year as installed capacity increased 110 per cent to 5.95GW in 2008.
Europe accounted for 82 per cent of the market with Spain knocking Germany from the number one spot after its installed capacity increased almost four-fold. The US took the number three spot while rapid growth in South Korea made it the world's fourth largest PV market.
The huge increase in installed capacity was supported by a rapid expansion in solar cell production, which also more than doubled to 6.85GW.
The report said that the supply constraints that had dogged the industry in recent years also receded with polysilicon supply to the industry increasing 127 per cent in megawatt terms throughout the year.
However, according to preliminary figures for the first quarter of this year, the increase in the supply of silicon coupled with falling demand as a result of recession means that the weighted average price for a factory gate crystalline module has fallen 24 per cent compared with the 2008 global weighted average.
Craig Stevens, president of Solarbuzz LLC, said that having overcome the problems presented by supply constraints, the industry now had to respond to the challenge of shifting demand patterns.
"Twelve months ago, we projected that as early as the fourth quarter of 2008 the PV industry would no longer be constrained by solar module supply, but instead by market demand," he said. "Now, the PV industry will need to navigate major changes in the regional demand mix, with new markets emerging, while addressing excess supply positions and significant adjustments to industry pricing."
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