Growth Steady, but Limited for Building-Integrated PV

BOSTON, MA, Apr 07 (MARKET WIRE) --
Targeted subsidies and aesthetic appeal have helped lay a foundation for
the building-integrated photovoltaics (BIPV) market, and modest but
steady growth will support future opportunities for innovative
cross-industry services and improved products. But a new report from Lux
Research concludes that today's $1.7 billion BIPV market's lack of
standardization, low production volumes and formidable competition from
building-applied photovoltaics (BAPV) will hinder broader adoption through
2013.

BIPV are PV components that replace the look and function of a primary
building material, and are sold as a single unit. Compared with BIPV, BAPV
encompass a broader class of building-mounted photovoltaics and include
some traditional roof-mounted PV systems.

Entitled "Laying the Foundation for Building Integrated Photovoltaics,"
Lux's report takes a strong analytical approach to provide valuable
insights for building materials, chemical and photovoltaics players on:

-- Opportunities for entering the market

-- Likely candidates for strategic partnerships

-- Market developments and new technologies that will foster success, and

-- How conventional and thin-film solar technologies will compete in
specific applications

"The market may be too small to be a central interest to big players,
but we see key opportunities for technology providers that can deliver
BIPV components with an aesthetic differentiation -- as opposed to a cost
differentiation," said Johanna Schmidtke, a Lux Research analyst and lead
author of the report. "That also applies to architects and building
envelope specialists who can distinguish their own businesses, while
raising awareness of BIPV."

The report taps Lux Research's database of solar PV technology providers
and installations for details about the 81 companies engaged in BIPV work.
It includes intelligence gathered through 29 additional interviews with PV
technology providers, module/system developers, PV installers, building
suppliers and architects to offer a comprehensive view of the BIPV market.

-- High price points and a lack of standardization are slowing adoption.
Highly customized products and low production volumes are putting a drag on
BIPV's claim that it lowers costs by streamlining installation of building
product and PV technology. High price points will limit growth to $5.7
billion over 694 MW in 2013, signifying just 3.7% by volume of the overall
solar market.

-- Improved regulation, building services and materials could all boost
demand. BIPV-specific subsidies and aesthetics have driven growth more than
economic viability. But standardized regulations covering BIPV's dual role
as building component and PV technology could control customization issues,
and reduce the technology's prohibitive price points.

-- BAPV will dominate for the foreseeable future. BIPV currently wields
aesthetic and subsidy-based advantages over BAPV retrofits. But PV module
manufacturers are shoring up the aesthetic gap, which will further pressure
BIPV players to decrease the price premium they exact.

"BIPV is nearing a crossroads," said Schmidtke. "It will either
continue to grow slowly as a highly specialized, aesthetic niche market,
or bridge the gap between the PV and building industries. The latter path
will require industry standards, as well as innovation and investment.
But it also offers genuine growth opportunities for well positioned
parties."

"Laying the Foundation for Building Integrated Photovoltaics" is part of
Lux Research's Solar Intelligence service. Clients subscribing to this
service receive continuous research on solar industry market trends and
forecasts, ongoing technology scouting reports and proprietary data points
in the weekly Lux Research Solar Journal and on-demand inquiry with Lux
Research analysts.

About Lux Research

Lux Research provides strategic advice and on-going intelligence for
emerging technologies. Leaders in business, finance and government rely on
us to help them make informed strategic decisions. Through our unique
research approach focused on primary research and our extensive global
network, we deliver insight, connections and competitive advantage to our
clients. Visit www.luxresearchinc.com for more information.

Contact:
Carole Jacques
Lux Research, Inc.
617-502-5314
carole.jacques@luxresearchinc.com

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