Photovoltaic solar revenue seen down 40 pct in '09
LOS ANGELES, April 17 (Reuters) - Revenue from photovoltaic solar installations is expected to plunge 40 percent this year due to scaled back solar subsidies in Spain and a global credit crunch that has slowed development of new projects, according to a report released on Friday.
Revenue generated by photovoltaic installations is expected to slide to $18.2 billion in 2009 from $30.5 billion last year, technology research firm iSuppli said.
Photovoltaic installations, in megawatts, are expected to decline 32 percent this year.
"For years, the PV industry enjoyed vigorous double-digit annual growth in the 40 percent range, spurring a wild-west mentality among market participants," iSuppli senior director Dr. Henning Wicht said in a statement.
Photovoltaic solar panels transform the sun's light into electricity.
A flood of new entrants into the solar market lead to an oversupply of solar panels in the market, Wicht said, and was aggravated by a sharp decline in solar installations in Spain and a credit crunch that has restricted financing for new projects in many markets.
The solar market is expected to return to growth in 2010, with revenue expected to reach $23.5 billion, an increase of 29.2 percent from 2009. In megawatts, installations are expected to rise 42.5 percent to 5.1 GW in 2010.
The industry will return to the lofty growth it has seen in recent years in 2011, with revenue expected to soar to $37.1 billion that year, up 58 percent from 2010.
By 2013, iSuppli said, solar installations should reach 25.9 GW with revenue of $90.5 billion. (Reporting by Nichola Groom; Editing Bernard Orr)
