Solar market grew 62% in 2007

SAN JOSE, Calif. — Cliche of the year: Solar is hot!

Despite ongoing polysilicon shortages in the market, world solar photovoltaic (PV) market installations reached a record high of 2,826 megawatts (MW) in 2007, a 62 percent jump over 2006, according to Solarbuzz LLC, a San Francisco-based solar energy consultancy.

Total polysilicon production rose by 30 percent in 2007, but ''it remained the most capacity constrained part of the PV chain,'' according to Solarbuzz. Some 21 new entrants started manufacturing polysilicon during the year, according to the firm.

World solar cell production hit 3,436 MW in 2007, up from 2,204 MW a year earlier, according to the firm. Japanese producers continue to lose ground, only accounting 26 percent of global production. Chinese manufacturers raised their share from 20 percent in 2006 to 35 percent in 2007, according to Solarbuzz.

Thin-film production more than doubled from 181 MW in 2006 to 400 MW in 2007, accounting for 12 percent of total PV production.

The PV industry generated $17.2 billion in global revenues in 2007. ''Germany's PV market reached 1,328 MW in 2007 and now accounts for 47 percent of the world market. Spain soared by over 480 percent to 640 MW, while the United States increased by 57 percent to 220 MW,'' according to Solarbuzz. ''It became the world's fourth largest market behind Japan, once the world leader, which declined 23 percent to 230 MW.''

"There has been massive investment in new production capacity across the PV chain over the past 12 months," said Craig Stevens, president of Solarbuzz LLC, in a statement. "In addition to this, PV companies raised nearly $10 billion in equity and debt during 2007 to support industry expansion."