Global photovoltaic demand rose to 3.82 GW (an increase of 54 percent) in Q2 from a much weaker first quarter in 2010, according to a report issued by Solarbuzz, an international solar energy market research and consulting company. The photovoltaic (PV) industry remains on target to deliver over 15 GW installations this year.

“The rush to install in Germany ahead of tariff declines in mid-2010, combined with strong incentive programs across Europe (especially in Italy, France and the Czech Republic) and an improved financing environment, drove the global PV market over three times the level in Q2 2009,” said Craig Stevens, president of Solarbuzz.

According to the latest edition of the Solarbuzz quarterly report, Q2 2010 global market demand was only 2 percent less than the global market’s previous quarterly peak (3.92 GW in Q4 2009). As a result of 2010 performance to date, Solarbuzz also raised its five-year demand scenario forecasts in the report.

Total industry revenues were approximately $17.2 billion for the second quarter, compared to $12 billion in the first quarter and $6.2 billion for the second quarter one year ago.

Germany, at 2.30 GW, accounted for 60 percent of second-quarter global demand. The next largest country market was Italy, which grew 127 percent quarter on quarter, was still just 11 percent of the size of the German market. France and the US also put in strong performances.

Among cell manufacturer shipments, the top five were represented by First Solar, Suntech Power, JA Solar, Yingli Green Energy and Trina Solar. Among the Top 12 cell manufacturers in Q2, six Chinese manufacturers accounted for 55 percent of shipments, up from 43 percent a year ago.

Looking ahead into 2011, the most challenging quarter will undoubtedly be the first quarter of 2011, according to the report. Leading European markets, including Germany, will face large reductions in tariffs at the beginning of the year. Even with careful phasing of projects and price reductions, market demand is projected to be less than 50 percent of module production.

“Historically, the PV industry has often exuded over-optimism in the face of uncertain end-markets. However, the recent industry conference in Valencia confirmed two prevailing industry positions, one that emphasizes oversubscribed order books, the other that focuses on the German tariff declines and a demand reduction next year,” Stevens said.

For more information, visit:  www.solarbuzz.com