What's Next on Horizon for Solar Energy

Written by Ucilia Wang

New solar-power technologies and predictions about policies as well as the next hot markets have framed a solar-energy conference taking place in Valencia, Spain, this week.

The European Union Photovoltaic Solar Energy Conference and Exhibition features exhibits by 715 companies and is expected to attract about 20,000 attendees.

The hosting country boasts the world's second-largest solar capacity [Germany has the largest]. By the middle of 2007, Spain had installed enough capacity to produce about 600 megawatts of solar power per year.

Spain has become a lucrative market thanks in no small part to its government's generous incentives, which compel utilities to buy solar electricity at prices higher than conventional power. But the government's proposal to reduce those subsidies, which are set to expire at the end of September, has drawn protests and warnings from the domestic solar industry (see "Spanish Energy Commission Votes to Shrink Solar Incentives" and "Spanish Solar Group: Don't Change Feed-in Tariffs" on greentechmedia.com).

The proposed incentives would cap the total installations in the country at 300 megawatts for 2009, roughly a third or even a quarter of the expected installation capacity in 2008. But Piper Jaffray analyst Jesse Pichel said in a research note that Spanish companies expect the government will actually increase the cap to 500 megawatts for 2009.

Meanwhile, solar companies and analysts have already pegged Italy as the next hottest market in Europe, Reuters reported Tuesday. First Solar (FSLR Quote) in July also said it expects to do more business in Italy, where some of its customers have begun to build power plants (see "First Solar Posts Blockbuster 2Q" on greentechmedia.com).

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Hear Jim Cramer's take on the future of solar energy and the one stock poised to profit.

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So far this week, companies have rolled out plenty of solar news from the conference and elsewhere: