This page contains a Flash digital edition of a book.
OPINIONSUBSIDIES


will create a huge number of jobs in the badly suffering building services industry.


The fact that there are good quality, cheap Chinese panels available allows solar PV to be more competitive as a renewable energy source. Costs are expected to fall rapidly over the coming years (as they have already) meaning that in around 5-6 years time the cost of solar electricity will be at par with retail electricity prices, which means the FiTs won’t be needed anymore.


Another point is that the big Chinese PV manufacturers will start doing the last manufacturing step, module integration, close to their markets. This is because you can air freight solar cells, but you have to ship finished solar panels because of the glass (regular glass factories normally only serve a radius of 100km).


By doing module integration close to their key markets, manufacturers won’t have working capital tied up for 4 weeks and will reduce the risk of damage in transport. Larger scale projects will only ensure the need for having production near deamnd will grow creating local opportunities.


develop a domestic end-user market. For a long time the UK has precious little in terms of PV manufacturing capability, which means the strength of Chinese companies has little impact. If we were not buying from China, we would be buying from elsewhere.


As the UK market grows, more people become engaged in the industry and start to look at product innovation. Already there are a number of UK companies developing solar products specific to the UK market as a direct result of the introduction of the Feed-in tariff. Furthermore, module manufacturing makes up only a small portion of the solar value chain. Installing roof-top PV is highly labour intensive, and the feed-in tariffs


Sharp already do this with a module integration plant in Wrexham, and we may well start seeing the Chinese companies open manufacturing plants in Europe, even in the UK, over the next couple of years which would provide an interesting boost to UK industry.


Eventually the playing field will level out again and China will become more expensive and there will be renewed space for newcomers with new technologies, processes and ideas but for now the Chinese players clearly have the upper hand on the global stage.


© 2011 Angel Business Communications. Permission required.


The fact that there are good quality, cheap Chinese panels available allows solar PV to be more competitive as a renewable energy source. Costs are expected to fall rapidly over the coming years (as they have already) meaning that in around 5-6 years time the cost of solar electricity will be at par with retail electricity prices, which means the FiTs won’t be needed anymore


17


www.solar-pv-management.com Issue I 2011


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48