Solar Installations up 33% in US in 2006, 41% in World, Solar Capacity only Utilized 62%

In an update on the solar industry Solarbuzz reports that the installation of solar photovoltaic (PV) devices in the United States increased by about 33 percent in 2006 over the previous year. Worldwide PV installations totaled 1,744 megawatts (MW) in 2006, a new record and a growth of 19 percent over 2005. The United States contributed just 8 percent of those installations, or about 140 MW, while Germany led the world market with 960 MW of PV installations, comprising 55 percent of the world's total PV installations for 2006. To supply that market, the global production of solar cells reached 2,204 MW in 2006, a growth of 33 percent over PV production in 2005, while the production of polysilicon a critical ingredient for silicon solar cells increased by 16 percent.

The Photovoltaic Service Program at Navigant Consulting has published a “Pre-Release” of its quarterly PV industry newsletter, Solar Outlook. The feature article in the release is an analysis of 2006 PV technology shipments. The PV industry grew by 41%, the same rate as the CAGR from 2000 to 2006. In 2005, thin film technologies were 6% of total shipments. Thin films increased their share of total to 7% in 2006, and are on track to increase by another percentage point, to 8% in 2007. Many more facts are included in the referenced pdf.

Notice that the Solarbuzz numbers are for global production, while the Navigant numbers are for shipments, perhaps explaining the difference in numbers or it may simply be a matter of discrepencies in data collection.

TOP TEN SOLAR MANUFACTURERS

RANKING	2004	2005	2006
1	Sharp Solar	Sharp Solar	Sharp Solar, 22%
2	Kyocera	Kyocera	Q-Cells, 12%
3	BP Solar	Q-Cells	Kyocera, 9%
4	Shell Solar	Shott Solar	Suntech, 8%
5	Q-Cells	BP Solar	Sanyo, 6%
6	Shott Solar	Mitsubishi Electric	Mitsubishi Electric, 6%
7	Sanyo	Sanyo	Shott Solar, 5%
8	Mitsubishi Electric	Shell Solar	Motech, 5%
9	Isofoton	Motech	BP Solar, 4%
10	Motech	Isofoton	SunPower, 3%
Total Shipments	1049.8	1407.7	1982.4

The capacity utilization table on the left, from Navigant, reveals a somewhat suprising fact that production facilities were only used at 62% of capacity in 2006, up 1% from 2005, this happening while reports are that demand is exceeding supplies. This must at least be partially explained by the shortage in silicon.

This year is shaping up to be another banner year for PV installations in the United States. In early February, the Colorado Public Utility Commission (PUC) approved an 8-MW PV installation, which SunE Alamosa1, LLC will construct in Alamosa before year's end to provide solar power to Xcel Energy and its customers. Last week, the Nevada PUC approved a 20-year contract between Nevada Power Company and Solar Star NAFB for the installation of an 18-MW PV installation at Nellis Air Force Base. The Nevada PUC also approved 562 applications for customer-sited PV installations that will qualify for the state's SolarGenerations program. See the press releases from the Colorado PUC and the Nevada PUC.

Of course, California continues to demonstrate its solar power leadership by installing large PV systems throughout the state. Last week, Chevron Energy Solutions began building a 1-MW PV system that will form a parking structure at California State University, Fresno. In mid-March, San California Gas Company (a subsidiary of Sempra Energy) presented a $3.4 million incentive check to Peninsula Packaging for installing a 1-MW PV system at its facility in Exeter. On March 1st, the City of San Diego unveiled a 1-MW PV system at its Alvarado Water Treatment Plant, while SPG Solar, Inc. announced the completion of an 827-kilowatt PV system at Western Wine Services in the Napa Valley. Last week, SPG Solar also completed a 500-kilowatt PV system for the Sonoma County Water Agency. See the press releases from Chevron Energy Solutions, Sempra Energy, and the City of San Diego (PDF 37 KB), as well as the March 1st and March 19th press releases from SPG Solar.