Commercial & Residential Solar Solutions

Energy Industry Update: April 19, 2010 PV Glut Eroding Due to Feed-In-Tariffs

PV Glut Eroding, FiT (Feed-in Tariff) Programs Help

XsunX, Inc. (OTCBB:XSNX), the developer of advanced, thin-film photovoltaic (TFPV) solar cell technologies and manufacturing processes, updates its shareholders on FiT policies and their impact on the solar industry, including a reduction in the supply glut that plagued the industry in 2009.

Feed-in tariffs, or policies created to drive the adoption of renewable energy technology, have been widely offered and used in counties including Germany and Spain. These policies have not only contributed to reducing the price of the technology significantly but also helped accelerate the move toward grid parity.

In Germany, the FiT has been so successful in spurring a fast-rate of solar adoption that the country accounted for about 50% of the total worldwide PV installations in 2009. Although a potential additional reduction in the FiT is expected to pass in Germany next month, experts still estimate equally impressive installation numbers for 2010 at around 4 GW. Compared to the total global installed capacity of PV systems expected to reach 8.6 GW (according to iSuppli), this is an incredible capacity for one country.

All these positive projections signify an important turn in the solar industry since the global recession, and thats a return to growth, said Tom Djokovich. But because of the price erosion we saw in 2009, companies will have to continue reducing their price structures which in turn will make for an intensely competitive marketplace. Fortunately, XsunX is positioning itself to capture market with an innovative and cost-competitive technology once were ready commercially later this year.

Not all countrys feel FiTs are beneficial at the current time due to uncertain market conditions. China was expected to announce a new FiT program, but reported this week that it has been delayed indefinitely. Some reports say government officials want to see what the market does first since pricing has come down so dramatically, while others say it has less to do with pricing and more with strategic competitive thinking. Even without the Chinese FiT, theyre still moving forward with a number of tendered utility-scale PV installations that will help guide the tariff price when its implemented.

The solar supply chain is a commodity-like market. As such, its important to stay nimble as a company and remain relevant with a good product whatever the incentive program is, FiT or otherwise, added Djokovich. That is our concentration here at XsunX to stay relative through innovation as opportunities to either improve or develop new technologies present themselves.

Safe Harbor Statement: Matters discussed in this news letter contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the

words “anticipate”, “believe”, “estimate”, “may”, “intend”, “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

Related posts

XsunX Newsletter

Good Morning, September was an important month for us. We have been busy working...

XsunX Newsletter

Good Morning and Happy New Year, We hope the holidays were great for everyone....

XsunX Newsletter

Good Morning, In our last newsletter, we outlined that the start-up and calibration of...

XsunX Newsletter

Good Morning, Excellent progress and good news continues to follow us into November.  As...

XsunX Newsletter

Good Morning, This CIGSolar® tool build update provides the successful completion of a significant...

XsunX Newsletter

Good Morning, Although we have been very busy on the shop floor working on...

XsunX Newsletter

Good Morning, Last week XsunX provided shareholders and customers with news that it is...

XsunX Newsletter

Good Morning, Over the last few weeks, re-assembly and testing of the major CIGSolarTM...

XsunX Newsletter

Good Morning, With the delivery of the CIGSolarTM system to the new facility in...

XsunX Newsletter

Hope your 4th of July was packed with good times, Here at XsunX, July...

Leave a Comment

Leave a Reply