UK Solar Panel Market

Analysis
2010
Abstract
PV panel industry is relatively under-developed in UK compared to other Europe
nations like Germany, Spain and Italy. The market is valued at £192 million in 2009 with
installing capacity of 32MW and has a share of 0.3% of all renewable energies. It is
predicted that in 2013 the installing capacity will increase to 500MW. Globally, the PV
market is dominated by First Solar and in the UK Sanyo is the biggest player.

One of the main trends that will drive the PV industry in next three years is
increasing government investment in the renewable energy industry. In 2010, the feed-in-
tariff that aims to see a rise in total energy from renewable from 2% in 2009 to 15% in
2020.

Another trend is the effect of prices of raw material on PV industry. The

conventional energy sources are coal and natural gas which have recorded increase in
price. Meanwhile, the price of silicon is expected to drop in 2012. This will impact the PV
market as the cost of production will decrease and more people will be able to afford the
PV panels.

Thirdly, the PV industry will also be affected by the rapid development of

technologies that increases the efficiency of PV panels and reduce the cost.

Lastly, increasing environmental awareness among UK citizens also drives the PV

panel market. One of the main benefits of PV panel is the low carbon emission and low
energy payback time. More people in UK are adapting to environment-friendly products,
even for higher cost.

In conclusion, PV market can be seen growing rapidly in the next three years. The
market is open for new entrant to introduce their products as the industry is young but
has potential to be one of the leading renewable energy. A few recommendations are
included for new companies to adapt into the industry and use it to its full potential.

2
TABLE OF CONTENTS

1. Introduction

1.1 Scope 4
1.2 Product Details 4
1.3 Development in UK 4
1.4 Market Size and Growth 5
1.5 Key Competitors 6

2. Trend I: Investment by Government

2.1 Increasing Financial Investment 8

2.2 Feed-in-tariff 9
2.3 Renewable Obligation 10
2.4 Previous programme and future plan 11

3. Trend II: Increasing Electricity Price

3.1 Higher electricity prices 12

3.2 Prices of oil, natural gas and coal 13
3.2 Cheaper electricity from PV panels 14

4. Trend III: Rapid Technology Development

4.1 Cost reduction of PV panels 16

4.2 Higher efficiency of PV panels 17
4.3 Effect of technology on PV market 18

5. Trend IV: Increasing Environmental

Awareness

5.1 Environmental concern-Carbon emission 20

5.2 Environmental benefits of PV panel 21
5.3 Attitude Towards PV Panels and Climate Change 23

6. Conclusion

6.1 Opportunities 26
6.2 Threats 27
6.3 Recommendations 27

7. Appendices 29
8. References 30

3
1. INTRODUCTION
1.1 Scope

The objective of this report is to give analysis on the PV panel market by considering four
main trends that are most likely to affect the PV market in the next three years. These
trends are derived from the PESTLE analysis of the market. This report also outlines the
opportunities and threats arise from these trends and some recommendation for new
entrants. The information was obtained from other primary researches like Frost & Sullivan,
Keynote and Mintel, conference reports, government reports and reliable websites.

1.2 Product Details

Solar panels used to generate electricity are generally termed as photovoltaic (PV) panels.
Photovoltaic panel incorporates assembly of photo cells that convert sunlight directly into
electricity. This method of electricity generation is cost-effective, environment friendly and
requires small space.

1.3 Development in United Kingdom

UK is far behind other countries in Europe in when it comes to solar power market. In
Europe, Germany is in the leading with share of photovoltaic capacity of 79.9% in 2004. UK,
on the other hand, has only 0.78% of share as can be seen in table 11. It also reported that
currently Britain is lagging a decade behind other leading European countries on solar
installation2.

4
Table 1: Installed capacity of PV modules in Europe from 2003 to 20041.

1.4 Market Size and Growth

The market for solar panels in UK is small and lags behind other countries like
German, South Korea and Japan. Currently, the PV market share in renewable energies is
only 0.33% and the renewable industry is dominated by wind power with 50% of share as
shown in figure 1. According to a report by Keynote, in 2008, UK consumption of renewable
energy was 5.9 million tonnes of oil equivalent (toe) compared to 3.8 million toe in 2004.
The total capacity for electric generation from PV panels has increased from 8MW in 2004
to 23MW in 20088.

Also, the Office of the Gas and Electricity Markets (Ofgem) reports that from April
2010 to July 2010, 4429 out of 4457 PV installations are done domestically3. This clearly
shows that the market is mainly focused on domestic installations. In 2009, there was
32MW of installations in UK. The average cost for domestic PV panel installation is
£6,000/kW4. By estimation, the UK’s PV panel market is valued at £192 million in 2009.
5
Figure 1: Installed capacity of renewable electricity sources in the UK from 2004 to 20082.

However, according to a report by PricewaterhouseCoopers, a five-fold increase in

solar photovoltaic (PV) installations is expected in 2010 and in 2013 the installation capacity
expected is 500MW. This growth will be mainly influenced by the introduction of feed-in-
tariff (FIT). This capacity could reach 1000 MW by 20151.

1.5 Key Competitors

Currently, the global PV panel market is dominated by First Solar with a production
of 1,100 MW in 2009 (Table 2). This is followed by Suntech and Sharp with 704 MW and 595
MW of solar PV production, respectively. Revenue of First Solar was $ 2billion in 200935
whereas Suntech and Sharp had revenues of $ 1.92 billion36 and $ 1.6 billion37. First Solar
produces thin-film modules and Suntech produces crystalline silicon modules. Sharp
manufactures both types of solar panels5. Reportedly, at the end of 2009, Sharp overtook
First Solar with revenue of $ 2.2 billion. The factor that contributed to Sharp’s success was
increased shipment of crystalline silicon panels which had higher selling price than thin-film
modules6.

6
 However, in UK, Sanyo is the biggest manufacturer with 355 installations, followed
by Sharp and Kyocera with 99 and 97 installations (Table 3). The Sanyo’s panel is
Heterojunction with Intrinsic Thin layer (HIT) cell whereas Sharp and Kyocera sells crystalline
silicon products. HIT cells are regarded as most efficient, however, its price per kW is higher
than the other brands7.

Table 2: Top 10 solar PV manufacturers by production in 20095.

Table 3: PV installations by main equipment manufacturers4.

7
2. TREND I
Investment by Government
2.1 Increasing financial investment

Ονε οφ µαϕορ τρενδσ τηατ ωιλλ δριϖε Πς πανελσ µαρκετ ισ τηε γροωινγ ινϖε
στµεντ βψ ΥΚ γοϖερνµεντ. Χυρρεντλψ, τηε γενερατιον οφ ελεχτριχιτψ φροµ Πς πανε
λσ ισ φαρ λεσσ τηαν οτηερ χουντριεσ ιν Ευροπε λικε Γερµανψ ανδ Ιταλψ. Ασ α λεα
δινγ νατιον, ΥΚ ωιλλ τρψ το χοµπετε το ινχρεασε ιτσ µαρκετ γλοβαλλψ.

Αλσο, ΥΚ ισ υνδερ πρεσσυρε το φυλφιλ τηε Κψοτο Προτοχολ χαρβον ρεδυχτι

ον ωηιχη χαν βε σεεν ιν φιγυρε 2. Ασ α γλοβαλ λεαδερ, τηε ΥΚ γοϖερνµεντ ωιλλ νεεδ
το σετ εξαµπλε ιν ρεδυχινγ γρεεν ηουσε γασεσ. Τηεσε ρεασονσ ωιλλ δριϖε τηε γοϖε
ρνµεντ το αδοπτ νεω στρατεγιεσ τηατ ωιλλ αδδ ϖαλυε το τηε ρενεωαβλε ενεργψ µαρ
κετ.

Φιγυρε 2: ΕΥ εµισσιον οφ γρεενηουσε γασσεσ χοµπαρεδ το Κψοτο Προτοχολ ταργετ,

1990 το 20109.

Τηε γοϖερνµεντ σ ινϖεστµεντ ιν ρενεωαβλε ενεργψ ηασ ινχρεασεδ τρεµενδο

υσλψ φροµ 2004 το 2009. Βψ 2009, ΥΚ ηασ ινϖεστεδ ∃11.2 βιλλιον ιν χλεαν ενεργψ α
νδ ηασ ρεχορδεδ 127% ινχρεµεντ ιν ινϖεστµεντ φορ τηε φιϖε ψεαρσ34 ασ σηοων ιν τ
αβλε 4 ανδ 5. Τηισ σηοωσ τηε γοϖερνµεντ ισ κεεν ον βυιλδινγ τηε ρενεωαβλε ενεργψ
ινδυστρψ ανδ ηιντσ φορ ποσσιβιλιτψ οφ µορε φινανχιαλ ινχεντιϖεσ. Τηεσε µοϖεσ β

8
ψ γοϖερνµεντ ωιλλ ινχρεασε τηε αφφορδαβιλιτψ οφ Πς πανελσ ανδ τηερεφορε χρεατ
ινγ α βιγγερ µαρκετ.

Ταβλε 4: Τοπ 10 χουντριεσ φιϖε−ψ Table 5:

εαρ γροωτη ιν ινϖεστµεντ ιν χλεαν ε Τοπ 10 χουντριεσ ιν χλεαν ενεργψ

2.1 Feed-in-Tariff (FIT)

In April 2010, the UK government has introduced the feed-in-tariff scheme which will
benefit the users of renewable energies including PV panels. By implementing this tariff, the
government expects to see a rise in total energy from renewable from 2% in 2009 to 15% in
2020. Under this scheme, the users of renewable energies will receive financial benefits
such as payment for electricity produced, payment for electricity sold back to the grid and
reduction from electricity bill for using the produced energy10. Under this tariff, the users
will get a return of near £1,000 a year for a period of 25 years, allowing them to earn more
than the investment made11. Feed-in-tariff scheme can create demand for renewable
energy especially for PV panels as they are easy to install and requires only small space. As
figure 3 shows, the implementation of FIT will stimulate the market to achieve installation
capacity of 500MW in 2013.

9
Figure 3: Forecast of cumulative installed PV capacity in the UK from 2009 to 2013 with and
without FIT2.

2.2 Ρενεωαβλεσ Οβλιγατιον

Τηε ΥΚ γοϖερνµεντ ηασ αλσο ιντροδυχεδ Ρενεωαβλεσ Οβλιγατιον ιν 2002 το προµοτ

ε ελεχτριχιτψ γενερατιον φροµ α ρενεωαβλε ενεργψ σουρχε. Υνδερ τηισ οβλιγατιον,
τηε ελεχτριχιτψ συππλιερσ µυστ προδυχε α παρτ οφ τηε ελεχτριχιτψ φροµ ρενεωαβλ
ε σουρχε. Τηε συππλιερσ ωιλλ βε αωαρδεδ φορ γρεεν ενεργψ προδυχεδ προ−ρατεδ βα
σισ. Μορεοϖερ, φροµ 1στ Απριλ 2009, νεω ρενεωαβλε τεχηνολογιεσ ωιλλ βε γιϖεν γρε
10
ατερ αλλοωανχε12. Τηισ ισ α γοοδ χηανχε φορ νεω χοµπανιεσ το εντερ τηε ρενεωαβλ
ε ενεργψ µαρκετ ασ τηε αλλοωανχε χαν χοϖερ σοµε οφ τηε προδυχτιον χοστσ.

2.3 Πρεϖιουσ συχχεσσφυλ σχηεµε ανδ φυτυρε πλαν

Τηε πρεϖιουσ γοϖερνµεντ προγραµµεσ ρεφλεχτ τηε εφφεχτιϖενεσσ οφ πολιτιχ

αλ ινϖεστµεντσ. Ωε χαν σεε τηισ φροµ τηε παστ γοϖερνµεντ προγραµµεσ − Λοω Χαρ
βον Βυιλδινγσ Προγραµµε (ΛΧΒΓ) ανδ Μαϕορ Πς ∆εµονστρατιον Προγραµµε (Μ∆Π)
. Υνδερ ΛΧΒΓ, γραντσ υπ το ≤2,500 ωερε γιϖεν φορ ινϖεστµεντ ιν ρενεωαβλε ενεργψ
δοµεστιχαλλψ. Ιν φαχτ, µοστ οφ τηε γραντσ ωερε σπεντ το ινσταλλ σολαρ πηοτοϖολ
ταιχ ωιτη τοταλ αππλιχαντσ οφ 442813. Τηε Μ∆Π ωηιχη αιµεδ το ινφλυενχε τηε δοµε
στιχ µαρκετ βψ χηανγινγ πυβλιχ σ περχεπτιϖε ωασ αλσ ο συχχεσσφυλ. Α τοταλ οφ 1
661 σχηεµεσ ωερε χοµπλετεδ υνδερ Στρεαµ 1 ωηιχη χονσιστ αππλιχατιονσ φορ ηουσ
εηολδσ, σµαλλ ανδ µεδιυµ−σιζεδ βυσινεσσεσ14.

Φυρτηερµορε, νεω προϕεχτσ αρε υνδερωαψ το συππορτ ρενεωαβλε ενεργψ ιν

ΥΚ. Τηισ ινχλυδεσ τηε προποσαλ το χρεατε τηε Γρεεν Ινϖεστµεντ Βανκ ωηιχη ωιλλ
φυνδ νεω τεχηνολογιεσ οφ renewable energy15.

Table 6: Number of different renewable energy modules installed under Low Carbon
Buildings Programme (LCBG)13.

11
3. TREND II
Increasing Electricity Price
Ιτ ισ ϖιταλ το τακε ιν αχχουντ οφ τηε χονϖεντιοναλ ελεχτριχιτψ σ πριχεσ αν
δ τηε εφφεχτ οφ ραω µατεριαλ χοστσ. Τηεσε φαχτορσ ωιλλ αφφεχτ τηε γροωτη οφ Πς
µαρκετ. Ασ σηοων ιν φιγυρε 5, τηε χονϖεντιοναλ ελεχτριχιτψ ισ ποωερεδ µοστλψ βψ
γασ (52 %), φολλοωεδ βψ χοαλ (23.4 %) ανδ νυχλεαρ πλαντσ (15.8 %). Αλσο, τηε συ
ππλψ οφ ραω µατεριαλσ ωιλλ αφφεχτ τηε ελεχτριχιτψ πριχεσ16.

Φιγυρε 4: Περχενταγε οφ ελεχτριχιτψ συππλιεδ βψ σουρχε ιν σεχονδ θυατερ ο

φ 201016.

3.1 Ηιγηερ Ελεχτριχιτψ Πριχεσ

Αχχορδινγ το Μιντελ, τηε πριχε οφ ελεχτριχιτψ ηασ ινχρεασεδ βψ 63% ιν 200

8 χοµπαρεδ το 2004. Ιν 2008, τηε µαρκετ σιζε φορ ελεχτριχιτψ ωασ ≤14,058 ωηιχη ηα
σ γονε υπ φροµ ≤8,624 ιν 2004 (Ταβλε 6). Τηε πριχε εξπεχτεδ το ρισε ασ τηε γλοβαλ δ
εµανδ φορ ελεχτριχιτψ ινχρεασεσ. Φυτηερµορε, Βριτιση Γασ ανδ τηε Σχοττιση ανδ
Σουτηερν Ενεργψ (ΣΣΕ) αρε ινχρεασινγ τηε ελεχτριχιτψ πριχεσ βψ 7% ανδ 9.4% ατ τ
ηε ενδ οφ ψεαρ 2010 ασ ωηολεσαλε γασ πριχεσ ηαδ ρισεν βψ 25%32. Ωηεν ελεχτριχιτ
ψ πριχε ηικεσ, χονσυµερσ ωιλλ δεφινιτελψ λοοκ φορ χηεαπερ ανδ µορε συσταιναβλ
ε αλτερνατιϖε.

12
Table 6: Breakdown of consumer spending on home utilities, by segment in 2004, 2006 and
200817.

3.1 Effect of oil, natural gas and coal Prices

Ασ εξπεχτεδ, τηε ελεχτριχιτψ πριχε δεπενδσ ον τηε ραω µατεριαλσ υσεδ17. Τη

ε πριχε οφ οιλ, νατυραλ γασ ανδ χοαλ ηασ εξπεριενχεδ α σιγνιφιχαντ ινχρεασε ιν τη
ε παστ δεχαδε. Αχχορδινγ το α ρεπορτ βψ ∆επαρτµεντ οφ Ενεργψ ανδ Χλιµατε Χηανγ
ε, τηε αϖεραγε ρεαλ τερµσ πριχε οφ νατυραλ γασ ιν 2008 ηασ ινχρεασεδ βψ 117%, ω
ηιλστ τηε πριχε οφ χοαλ ηασ ινχρεασεδ βψ 105% χοµπαρεδ το 200316. Τηε χοστ οφ οι
λ ηασ αλσο ινχρεασεδ βψ 59 % ιν 2008 τηαν ιν 2003 ασ σηοων ιν φιγυρε 5. Τηε µαϕο
ρ φαχτορσ αφφεχτινγ τηεσε πριχεσ αρε οιλ σηορταγεσ, πολιτιχαλ υνχερταιντψ, οϖερ
συππλψ ανδ στρενγτη οφ δολλαρ.

Ιν τηε νεξτ τηρεε ψεαρσ, Οργανισατιον οφ τηε Πετρολευµ Εξπορτινγ Χοµπανι

εσ (ΟΠΕΧ) εξπεχτσ τηε δεµανδ φορ οιλ το ινχρεασε το 89.9 µιλλιον βαρρελσ α δαψ ι
ν 2014 φροµ χυρρεντ δεµανδ οφ 4.4 µιλλιον βαρρελσ α δαψ18. Ανοτηερ φαχτορ νεεδ τ
ο βε χονσιδερεδ ισ τηε αϖαιλαβιλιτψ οφ νατυραλ ρεσουρχεσ. Αχχορδινγ το Ροβερτ
Λ. Ηιρσχη, αν Αµεριχαν ενεργψ αδϖισερ, τηε ωορλδ οιλ προδυχτιον ηασ ηιτ α πλατε
αυ ανδ ισ λικελψ το δεχλινε ιν 2−5 ψεαρσ19. Τηισ ωιλλ δεφινιτελψ ινχρεασε τηε πριχ
ε οφ οιλ ανδ ωιλλ δριϖε τηε γοϖερνµεντ το σεεκ α νεω ανδ µορε συσταιναβλε ενεργψ
σουρχε το φυλφιλ τηε γροωινγ δεµανδ.

13
Figure 5: Average price paid in real terms by UK power producers for coal, oil and natural gas
from 1998 to 200816.

3.2 Cheaper Electricity from PV Panels

We also need to consider the cost of production for solar panel. For most solar
panels, the material commonly used is silicon, where it constitutes 45 % of the production
cost and will directly affect the cost of PV panels. The global silicon price was valued at $
200 per kg. According to a report by Frost & Sullivan, the silicon price is expected to fall to $
65 per kg in 201220 (Figure 7). This has two different effects on the photovoltaic market. The
manufacturers will most likely have to reduce the production and forecast lower revenue.
On the bright side, the fall of silicon price will reduce production cost, attract more
customers and increase market for PV panels.

14
Figure 6: Projected global silicon prices from 2008 to 201220.

By analysing the market for raw materials, it is evident that in few years time the
conventional energy will cost higher. This will divert the attention to cheaper alternatives
like PV panels. As discussed, the declining silicon price will cause the cost for PV panel to
drop. In this case, new entrants will have to face fierce competition from the existing big
companies as they have stable finance and able to compensate the price drop.

4. TREND III
Rapid Technology Development
Many large PV panel companies are rapidly developing new technologies and
producing more advanced panels. The panels are commonly categorised according to the
semiconductors. The two main types of semiconductors used are crystalline silicon and thin-
film silicon. Crystalline silicon has a market share of 80%. The technological developments
have increased the affordability of PV panels by reducing the cost and increasing efficiency.
Table 7 summarises the common cell materials and their properties.

15
Table 8: Different types of PV panels available on the market and the properties1.

4.1 Cost reduction of PV panels

Currently, the cost of PV modules is very high and is more than ten times of the
conventional energy sources. Many large companies are investing on their research and
development area to produce cheaper PV panels as currently the panels are still considered
expensive by customers. Looking at the theory by Boston Consulting Group (BCG), it is
arguable for the UK market to be at price umbrella as very few key players are involved.
More market entrants and installations are needed before cost reduces post-shakeout4. This
encourages new entrants as the cost-competition is low.

16
Figure 7: BCG’s theory for price and cost for a new technology, by cumulative output4.

To reduce the cost of PV panels, thin-film solar cell (TFSC) are now widely
commercialised than the crystalline silicon wafers. Crystalline silicon wafers are not cost
effective as they account for 40-50 % of finished product’s cost while thin-film uses fewer
raw materials. With the improvement of technology the production cost was reduced from
$2000/Watt to $38/ watt in 1978 and to $3.8 / watt recently. Also, the cost of PV power
generation fell from $5/kWatt to $0.5/kWatt in 30 years33.

4.2 Higher Efficiency of PV panels

PV panels are often regarded as less efficient than other renewable energies. This
conception can decrease the market value. Although TFSC is cheaper, it has efficiency of
power conversion of 8% compared to crystalline silicon wafer which has efficiency of 17%5.

A more efficient PV panel developed is concentrated PV (CPV). These panels use high
concentration lenses to focus sunlight and uses moving frame to increase the amount of
light falling on the cell. These features increase CPV’s efficiency and reduce cost as uses less

17
PV cells. In 2009, the highest efficiency for CPV is achieved by Spectrolab and it is expected
to reach 50% in future21.

One novel technologies currently explored is the quantum dot technology. Quantum
dot-based PV cells are believed to produce seven excitons compared to one in conventional
PV panels when hit by photons of the sunlight. This can increase the efficiency of PV panel
by seven-fold. Quantum dot technology is capable of electric generation during night as it
can harvest energy using infrared and ultraviolet spectra. Currently, this technology is being
developed by Solterra Renewable Technologies and plans to commercialise it by the end of
20105.

Figure 8: Currently marketed and researched panels’ efficiencies22.

4.3 Effect of technology on PV market

The endless development new technologies for PV panels will definitely affect the
market by reducing the cost and increasing efficiency to attract more customers. Any new
entrant with a more effective way to harvest sunlight can dominate the market. As figure 8
shows, the panel efficiency has increased to 41.6% in the past 25 years. We can expect
fierce competition in terms of technology development in the coming years. An introduction
of a new technology wildcard will significantly reduce the electricity prices23 as shown in
figure 9. This reduction in price will appeal to new customers. However, many big
18
companies are financially stable to invest in R&D project that
that might be a disadvantage to
newcomers.

Figure 9:: Solar panel market outlook for 10 years23.

5. TREND IV
Increasing Environmental
Awareness
Another trend that will inevitably affect the PV panel market is the increasing
environmental
ental awareness amongst public, causing them to opt for renewable energies.
Media and government incentives to educate the public about the importance of switching

19
to renewable energies have a big impact on the society. Recently, UK government organised
a programme called the Big Energy Shift aiming to survey the public’s views on carbon
footprint and energy savings and educate them on renewable energy. According to the
findings, 65% of the respondents agree to use their energy to help tackle climate change
and 44% of them are prepared to pay more for energy efficient products31. Also, 81 % of the
respondents are worried about climate change and 83 % are worried about relying on
imported gas and oil (Table 8&9)24.

Table 9: Agreement of respondents towards use of energy and money to tackle climate
change31.

Table 10: Awareness of respondents towards climate change and reliance on imported gas
and oil24.

5.1 Environmental concern - Carbon Emission

Τηε µαιν χονχερν οφ πυβλιχ ισ τηε εµισσιον οφ χαρβον διοξιδε ιν ελεχτριχιτψ γενερ
ατιον. Τηισ εµισσιον χαννοτ βε ελιµινατεδ ασ ενεργψ ισ προδυχεδ φροµ χονϖερσιον
οφ χαρβον ιν φυελσ το χαρβον διοξιδε. Αχχορδινγ το ∆ΕΧΧ, 95 % οφ τηε χαρβον διο
ξιδε εµισσιονσ χοµε φροµ ενεργψ προδυχτιον ανδ χονσυµπτιον. Αλσο, τηε ρεπορτ στ
ατεδ τηατ τηε εµισσιον φροµ ελεχτριχιτψ γενερατιον ηασ δεχρεασεδ βψ 16.5 % ιν 20
20
08 χοµπαρεδ το 199025. Τηισ ισ α ρεσυλτ φροµ υσινγ µορε γασ ανδ οιλ ιν τηε γενερατ
ιον. Ψετ, αχχορδινγ το α ΒΒΧ συρϖεψ, Υνιτεδ Κινγδοµ ισ τηε 8τη βιγγεστ χαρβον διο
ξιδε εµιττερ ιν 2007 ωιτη εµισσιον οφ 564,000,000 οφ µετριχ τονσ26 (Ταβλε 11).

Φιγυρε 10: Χαρβον διοξιδε εµισσιον βψ σουρχε25.

Φιγυρε 11: Αµουντ οφ φ
υελ υσεδ ιν ελεχτριχιτψ γενερ
ατιον25.

21
Table 11: Carbon dioxide emission from energy sector of G20 countries in 2007.

5.2 Ενϖιρονµενταλ Βενεφιτσ οφ Πς Πανελσ

Ονε οφ τηε οβϖιουσ ενϖιρονµενταλ βενεφιτσ οφ χηοοσινγ ρενεωαβλε ενεργψ ι

σ τηε λοω λεϖελ οφ χαρβον φοοτπριντ. Ιν α ηουσεηολδ ωιτη 1000κΩη ενεργψ γενερα
τιον, Πς πανελσ χαν ρεδυχε εµισσιον βψ χυττινγ δοων 3.6κγ οφ συλπηυρ διοξιδε, 2.7
κγ ιφ νιτρογεν διοξιδε ανδ 550κγ οφ χαρβον διοξιδε27.

Πς πανελσ αλσο ηαϖε λοω ενεργψ παψβαχκ τιµε. Ενεργψ παψβαχκ ισ τηε ιδε
α οφ γενερατινγ µορε ενεργψ τηαν τηε ινπυτ ενεργψ υσεδ το προδυχε τηε σολαρ πανε
λσ. Τηε χοµµονλψ υσεδ πανελ, χρψσταλλινε σιλιχον ωαφερσ ηαϖε ανδ τηιν−φιλµ π
ανελσ ηαϖε 4 ψεαρσ ανδ 3 ψεαρσ παψβαχκ τιµε ρεσπεχτιϖελψ, ωιτη χυρρεντ τεχην
ολογψ. Ιτ ισ αντιχιπατεδ τηατ ιτ χαν βε ρεδυχεδ το 1 το 2 ψεαρσ ιν τηε φυτυρε. Πς πα
νελσ ηαϖε ϖερψ λονγ λιφεσπαν οφ 30 ψεαρσ ανδ 87 % το 97 % οφ ενεργψ προδυχεδ β
ψ τηε σψστεµσ ισ εξπεχτεδ το βε χλεαν.

Πς µανυφαχτυρερσ ηαϖε φουνδεδ Πς ΧΨΧΛΕ ασσοχιατιον το τακε βαχκ τηε

υσεδ πανελσ ανδ ρεχψχλε τηεµ το µακε τηε Πς ινδυστρψ δουβλε−γρεεν. Φροµ τηισ σ
ερϖιχε, τηε ασσοχιατιον εξπεχτσ το αχηιεϖε ρεχψχλινγ ταργετ οφ 85 % ανδ οφφερ φ
ρεε σερϖιχε φορ τηε ενδ υσερσ. Τηισ χουλδ αττραχτ µορε ποτεντιαλ χυστοµερσ.

22
Φιγυρε 12: Χυµυλατιϖε Νετ Χλεαν Ενεργψ Παψοφφ φορ Πς σψστεµσ27.

Φιγυρε13: Ενεργψ παψβαχκ τιµε φορ Πς σψστεµσ27.

5.4
5.4 ΑΤΤΙΤΥ∆Ε ΤΟΩΑΡ∆Σ Πς ΠΑΝΕΛΣ ΑΝ∆ ΧΛΙΜΑΤΕ ΧΗΑΝΓΕ

Ωιτη τηε µαϕοριτψ οφ ποπυλατιον ινχρεασινγλψ συππορτ ενϖιρονµενταλ φρι

ενδλψ προδυχτσ, Πς πανελσ ηαϖε χηανχε το βε νοτιχεδ φορ ιτσ ενϖιρονµενταλ βενε
φιτσ ασ δισχυσσεδ. Πς πανελσ εµιτ λεσσ χαρβον ανδ ηαϖε σηορτ ενεργψ παψβαχκ τ
ιµε τηατ µακεσ ιτ αττραχτιϖε το χυστοµερσ ωηο ηαϖε ενϖιρονµενταλ χονχερνσ. Μ
23
οστ οφ τηε ΥΚ ποπυλατιον ισ εδυχατεδ αβουτ τηε ενϖιρονµενταλ δαµαγε χαυσεδ βψ
γενερατιον οφ ελεχτριχιτψ ανδ 74% οφ τηε ρεσπονδεντσ αρε πρεπαρεδ το χηανγε τη
ειρ βεηαϖιουρ (Φιγυρε 14). Τηε ΥΚ ποπυλατιον ισ αλσο ιν φαϖουρ οφ ρενεωαβλε εν
εργψ ασ αν αλτερνατιϖε το φοσσιλ φυελ29 (Φιγυρε 15).

Φιγυρε 14: Αττιτυδεσ το χλιµατε χηανγε ανδ βεηαϖιουρ χηανγε ιν α συρϖεψ ιν 2009
29
.

Φιγυρε 15: Ιν φαϖουρ ορ αγαινστ οφ ρενεωαβλε ενεργψ ασ αν αλτερνατιϖε το φοσσι

λ φυελσ συχη ασ χοαλ ανδ γασ30.

Αλσο, σολαρ ποωερ προϖεσ το βε τηε µοστ φαϖουραβλε ενεργψ το βε υσεδ ιν

ελεχτριχιτψ γενερατιον, ωιτη 88% οφ τηε ρεσπονδεντσ ιν συππορτ οφ σολαρ υσε31 (Τ
αβλε 12). Τηισ στατιστιχσ ηασ νο σιγνιφιχαντ διφφερεντ φροµ τηε δατα οφ 2005. Τηι
σ σηοωσ τηε µαϕοριτψ οφ ΥΚ ποπυλατιον πρεφερ υσαγε οφ σολαρ ποωερ το γενερατ
ε ελεχτριχιτψ. Ανοτηερ στυδψ στατεσ, τηατ 27% οφ τηε ρεσπονδεντσ ωουλδ λικε Πς
24
πανελσ φορ τηε ηοµε (Ταβλε 13). Τηισ χλεαρλψ σηοωσ τηε ποπυλαριτψ οφ Πς πανελ
σ αµονγ ΥΚ χιτιζενσ.

Table 12: Favourability to different energy sources for producing electricity from surveys
taken in 2005 and 201031.

25
Table 13: Favourability to different energy sources for producing electricity from surveys
taken in 2005 and 201031.

26
6. CONCLUSION
From this report, it is identified that the PV market is expected to grow in the next
three years. The PV market will strongly depend on the government subsidies and financial
incentives to drive the market as reflected in the PV market of Germany. Also, the high
electricity price and increasing environmental concern will increase the demand from
domestic sector. However, the manifold advancement in technology will lead to a
competitive market in terms of price reduction and increase in efficiency. Nevertheless, the
PV market in UK is expected to grow substantially in the coming years.

3.1 Opportunities

Ονε οφ τηε οππορτυνιτιεσ ισ τηε συχχεσσφυλ ιµπλεµεντατιον οφ γοϖερνµεντ

πολιχιεσ χαν δριϖε τηε µαρκετ. Τηε συχχεσσ οφ φεεδ−ιν−ταριφφ χαν βε σεεν ιν Γερµ
ανψ ανδ Σπαιν. Ιφ ΥΚ ισ αβλε το εξεχυτε τηισ σχηεµε εφφεχτιϖελψ, τηε Πς πανελσ ω
ιλλ βεχοµε µορε αφφορδαβλε ανδ εδυχατε τηε πυβλιχ τηε βενεφιτσ οφ σολαρ ποωερ.

Ανοτηερ οππορτυνιτψ ιν τηισ ινδυστρψ ισ τηε ινχρεασε ιν ελεχτριχιτψ πριχε

νεξτ ψεαρ. Τηε Βριτιση Γασ ανδ Σχοττιση ανδ Σουτηε ρν Ενεργψ (ΣΣΕ) αρε ινχρεα
σινγ τηε ελεχτριχιτψ πριχεσ βψ 7% ανδ 9.4%, ρεσπεχτιϖελψ, ατ τηε ενδ οφ ψεαρ 201
0. Τηισ ωιλλ σεϖερελψ ρεδυχε τηε αφφορδαβιλιτψ οφ ελεχτριχιτψ ανδ χυστοµερσ ωι
λλ οπτ φορ µορε συσταιναβλε ενεργψ σουρχε λικε σολαρ ποωερ. Τηε γλοβαλ δεµανδ
ισ γροωινγ φορ Πς πανελσ ανδ τηε ΥΚ µανυφαχτυρινγ χαπαχιτψ ηασ ποτεντιαλ το γ
ροω αλονγ.

Αλσο, ανοτηερ οππορτυνιτψ ισ τηατ τηε Πς ινδυστρψ ισ α ρελατιϖελψ νεω ιν

δυστρψ τηατ ωιλλ γροω ιν δεµανδ ανδ χαν χατερ φορ µορε ιννοϖατιϖε προδυχτσ. Χ
υρρεντλψ, τηερε ονλψ χρψσταλλινε σιλιχον ωαφερ ανδ τηιν−φιλµ µοδυλε αρε βεινγ
χοµµερχιαλισεδ ιν τηε Πς πανελ ινδυστρψ. Τηισ γιϖεσ σπαχε φορ νεω τψπεσ οφ παν
ελσ το βε µαρκετεδ ιν τηε ινδυστρψ ανδ νοτ ουτχοµπετεδ.

27
3.2 Threats

Ονε οφ τηε γρεατεστ τηρεατσ το ΥΚ σ Πς πανελσ ινδυσ τρψ ισ ηεαϖψ ρελιαν

χε ον γοϖερνµεντ φυνδ ανδ ινϖεστµεντ. Ιν 2010, ΥΚ ισ υνδεργοινγ µασσιϖε σπενδινγ
χυτ τηατ θυεστιονσ τηε αϖαιλαβιλιτψ οφ φυνδσ το συππορτ τηε ινδυστρψ. Αλσο, υν
πρεδιχτεδ εχονοµιχ ρεχεσσιον µιγητ τρυνχατε τηε ινδυστρψ σ γροωτη. Τηισ ωιλλ χ
αυσε τηε ΥΚ µανυφαχτυρινγ υναβλε το κεεπ ιν παχε ωιτη γλοβαλ γροωτη. Ιν τηισ χα
σε, τηε κεψ χοµπανιεσ αρε λικελψ το φορµ µεργερσ ανδ αχθυισιτιονσ το εξπανδ τηει
ρ προδυχτ λινε. Τηισ ισ µιγητ ινχρεασε τηε χοµπετιτιον ιν τηε µαρκετ.

Οτηερ τηρεατ ισ τηε ελεχτριχιτψ γενερατιον δεπενδσ ον ιντενσιτψ ανδ δυρατι

ον οφ συνλιγητ. Τηε εφφιχιενχψ οφ τηε πανελσ ωιλλ δεχρεασε ασ τηε ιντενσιτψ ανδ
δυρατιον οφ συνλιγητ δροπσ. Αλσο, τηε χονϖερσιον το ΑΧ ποωερ υσινγ γριδ τιε ινϖε
ρτερ µιγητ χαυσε ενεργψ λοσσ οφ 4 το 12%.

Ανοτηερ τηρεατ ισ τηε πυβλιχ περχεπτιον ον Πς πανελσ µιγητ χηανγε ασ ιτ χ

αν βε τοο εξπενσιϖε. Χυρρεντλψ, Πς πανελσ χαν βε χοστλψ ασ τηε ινδυστρψ ισ νεω
ανδ νοτ ϖερψ χοµπετιτιϖε ιν τερµσ οφ χοστ ρεδυχτιον. Ιν αδδιτιον, οτηερ χηεαπερ ρ
ενεωαβλε ενεργιεσ λικε ωινδ τυρβινε αρε πρεφερρεδ.

3.3 Recommendations

Προδυχτ ∆εϖελοπµεντ

Τηε λιµιτατιον ισ προδυχτ ϖαριετψ γιϖεσ οππορτυνιτψ το µαρκετ διφφερεντ τψπε οφ

πανελ. Αλσο, µαρκετινγ οφ Βυιλδινγ−Ιντεγρατεδ Πηοτοϖολταιχ (ΒΙΠς) ισ ρεχοµµενδ
εδ ασ ιτ ισ αττραχτιϖε ιν τερµσ οφ ρεδυχτιον ιν χοστ ανδ λαβουρ ασ ΒΙΠς ρεπλαχεσ
α παρτ οφ τηε βυιλδινγ. Πανελσ ωιτη µυλτι αππλιχατιον συχη ασ ηεατ γενερατιον
αλονγ ωιτη ελεχτριχιτψ αλσο αττραχτ χυστοµερσ.

Στρατεγιχ Παρτνερσηιπ ωιτη Συππλιερσ ανδ Στρατεγιχ Λοχατιον

Βψ παρτνερινγ ωιτη συππλιερσ, υνιντερρυπτεδ συππλψ οφ ραω µατεριαλσ χαν βε εν

συρεδ. Αλσο, γοοδ θυαλιτψ ανδ λοω πριχε χαν βε γυαραντεεδ βψ ηαϖινγ α ρελιαβλε

28
συππλιερ. Τηε λοχατιον οφ µανυφαχτυρινγ φαχτορψ σηουλδ βε νεαρ τηε συππλιερσ
ανδ ενδ−υσερ το ρεδυχε τρανσπορτατιον χοστσ.

Χυστοµερ Σερϖιχε

Σερϖιχεσ λικε σψστεµ δεσιγν, ινσταλλατιον, αφτερ−σαλεσ ασσιστανχε, µαιντενανχ

ε ανδ υπγραδινγ αρε δεφινιτελψ ωιλλ αττραχτ µορε χυστοµερσ. Αλσο, ιτ ισ ρεχοµµεν
δεδ το σιγν υπ α λονγ−τερµ χοντραχτ ωιτη χυστοµερσ ασ ιτ ισ ηαρδ το χοµπετε ωιτη
λοωερ πριχεσ οφ οτηερ εσταβλισηεδ χοµπανιεσ.

Ηιγη−θυαλιτψ Στανδαρδσ

Ρεχογνιτιον οφ τηε προδυχτ ωιλλ ενσυρε τηε προδυχτσ θυαλιτψ ανδ χυστοµερσ τρ
υστ. Ρεχογνιτιονσ οφ Ευροπεαν Χοµµυνιτψ Ευροπεαν Σολαρ Τεστ Ινσταλλατιον (ΕΣ
ΤΙ) ανδ Ιντερνατιοναλ Ελεχτροτεχηνιχαλ Χοµµισσιον σηουλδ βε οβταινεδ το ενσυρ
ε τηε ηιγη θυαλιτψ στανδαρδσ. Λονγ−τερµ ωαρραντψ φορ τηε προδυχτ χαν αλσο εα
ρν βρανδ λοψαλτψ ανδ ινχρεασε προδυχτ σαλεσ.

29
 3958 words

7. APPENDICES
PESTEL Analysis

Political • UK government has introduced feed-in-tariff for residences and

companies that uses renewable energy
• National Renewable Energy Centre (NaREC) is an institute funded
by government that does research and development on
renewable energies including photovoltaic panels.
• NaREC offers many seminars and courses to new companies that
are interested in developing the renewable energy.
Economy • Supply of materials such as silicon, indium and cadmium that are
widely used in the production of PV panels.
• New metrology and monitoring tools needs to be developed to
increase the quality of new products.
• A five-fold increase in solar photovoltaic (PV) installations is
expected in 2010 across UK.
Social • Many people have benefitted from Low Carbon Building
Programme in UK. The statistics may help to spread the benefit of
installing photovoltaic panels.
• Almost zero maintenance of PV panels encourages more domestic
users to opt for this alternative energy source.
• Solar energy is free and generating energy with PV panels is far
more economical than conventional methods.
Technology • National Renewable Energy Centre (NaREC) is an institute funded
by government that does research and development on
renewable energies including photovoltaic panels.
• Photovoltaic industry is rapidly developing, introducing new
technologies; this provides competition to new companies.
Ethical/ • Energy generated from solar panels is clean and green energy and
Environmental environment friendly.
• Cadmium used in the production of panels might prove to be
toxic.
• Long life of solar panels, 20-30 years, will reduce waste
generation.
• Recycling PV panels is easy and makes it “double green”.
• Planning permission is not required as it is regarded as “permitted
Legal development”
• Climate Change Bill makes it easier to implement new policies.

30
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33