Solar Demand Picking Up in China

China's solar panel demand is zooming up in the last quarter of 2009 as the nation embraces for greener energy for the next 5 years. According to the xinhua newsnet report, 2009 PV demand more than doubled compared to 2008.

This week, Suntech (STP) reportedly broke ground on a $100 million 100,000-square-meter extension to its solar cell factory based on rising demand in China and Asia. $454B green energy investment was announced in late 2009 to promote renewable energy in the nation. Solar energy has been the topic of the 2010 World EXPO in Shanghai. Suntech Power, Solarfun (SOLF) and other Chinese solar PV makers have installed solar systems to cover the electricity demand for the whole EXPO. Many westerners do not recognize how serious the government is. Renewable energy has been regarded as the next strategy for the nation to become a world leader in the clean energy industry in the new century.

Recently another Chinese solar maker, Solarfun Power also announced it will increase its production capacity of photovoltaic (PV) modules from 550MW to 700MW by April 2010 and its PV cell production capacity from 360MW to 480MW by July 2010; the company sees strong demand in 2010 from many markets worldwide.

The German market may grow slowly in 2010 while the Chinese and Japanese markets catch up faster than expected. Under the new administration, Japan is providing financial incentives for consumers to install solar panels on their properties, helping it meet its goal to significantly cut carbon emissions by 2020. As a result, companies who have more exposure to the Asian market will benefit the most. To name a few, Suntech Power, Solarfun, Trina Solar (TSL) and Yingli Green (YGE). First Solar (FSLR) is also investing heavily in Asia; the company has set up a factory in Malaysia.

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