Asia Pacific Solar Power Photovoltaic Market Outlook 2011

This research service analyzes the solar energy market trends, installed capacity, revenue distribution, competitive structure, key policies and regulations, market share analysis and customer analysis for the solar power photovoltaic (PV) systems market in the Asia Pacific region.

Geographies covered includes North Asia – Japan, South Korea and Taiwan, Southeast Asia – Malaysia, Indonesia, Singapore, Thailand, The Philippines, Vietnam, and Rest of Southeast Asia, and ANZ – Australia and New Zealand. Installed capacity analysis includes both grid connected and off-grid installations. The research period is from 2007 to 2017 with base year as 2010, and forecast period from 2011 to 2017.

This research service titled Asia Pacific Solar PV Systems Market Outlook provides a comprehensive insight into the solar photovoltaic (PV) systems market that are used for both on-grid and off-grid applications. It also offers a thorough analysis of the key market drivers, restraints, competitive scenario, customer demand trends, technology trends, installed capacity forecasts, and revenue forecasts of each country. In this research, Frost & Sullivan’s expert analysts thoroughly examine the following markets: North Asia, Southeast Asia and Australia and New Zealand (ANZ). It also covers the following technologies: crystalline silicon, thin film and concentrator silicon.

Favourable Policy Framework such as Feed-in-tariffs to Help Solar PV Systems Achieve Revenue Growth of 41.9 per cent in 2011

Solar PV systems have emerged the technology of choice in the Asia Pacific, as countries attempt to mitigate harmful carbon dioxide emissions and combat climate change while ensuring energy security. This market has large untapped potential because of the high solar radiation available throughout the year in the region. Gradual and large-scale adoption of solar PV systems will lower the regions dependence on highly volatile oil and gas resources. However, customers find these systems prohibitively priced, despite the declining prices globally. Being an expensive source of clean power generation, continued government backing is the need of the hour till solar PV power price reaches grid parity, says the analyst of this research. Strong government support in the form of national policies, regulations, tax incentives, rebates and feed-in-tariff schemes are absolutely necessary to build capacity, especially in the nascent stage of market growth.

The market is likely to experience exponential growth in the next few years following the likely introduction of energy regulations in countries that presently do not have them and the aggressive promotion of existing policies. Participants must actively provide project developers and end users with information about the adoption criteria, list of certified installers and technical guidelines. As the initial capital expenditure (CAPEX) involved is high, it is crucial for potential end users to be presented with a compelling business case. Customers that have installed solar PV systems have done so not only for their operational benefits but also to demonstrate their strong commitment to environment protection. There is an increasing willingness among the customers to adopt energy-efficient measures because of the heightened awareness regarding the harmful effects climate change and greenhouse gas (GHG) emissions, notes the analyst. This has resulted in a rising demand for solar PV systems among the educated, urban customers as the system is readily available, offers rapid installation and is easy to maintain.

Despite its many advantages, solar PV systems are not likely to find traction in countries where the grid infrastructure is highly reliable and stable, and where electricity is supplied at a highly subsidised rate. Furthermore, as the majority of the customers in this region fall under the low-income group, solar PV systems high cost of installation deters potential buyers. This is especially true in Southeast Asia, where customers are not provided with easy access to credit since solar PV is not a proven technology.

In other cases, the lack of incentives to sell the excess power generated, low technology awareness and limited presence of certified installers dissuade prospective investors. The systems are likely to find more takers once customers are made aware of its long-term cost benefits, ability to generate on-site power, modular design, high flexibility and ease of installation in both the business and residential segments. Rural and remote area electrification opportunities through solar PV systems also act as a major driver in Southeast Asia and ANZ regions, observes the analyst. The extension of utility grid is not economically feasible in these regions because of several logistical issues, and this creates opportunities for the installation of solar PV systems and hybrid systems.