REC has reported on its third quarter results and published forecasts for the global solar panel manufacturing industry.
The company reported quarterly revenues of USD $ 234 million, up 39% compared to Q2 2015 – an all-time high.
REC says it experienced module sales of 361 MW in Q3, with 207 MW of that figure being U.S. activity.
“We are extremely proud on this record quarter, demonstrating our sustainable and profitable growth, quarter after quarter,” said Steve O’Neil, CEO at REC. “Continuously declining PV system costs are one of several key drivers for the industry.”
The company is expanding its production capacity to 1.7 GW by the end of this year and has set a tentative target of 3.5GW capacity by 2020.
REC is expecting agreements resulting from the upcoming UN Climate Change conference should further increase solar’s momentum.
It says annual global installations of solar panels will reach around 65 GW in 2016, an increase of 10% from 2015. By 2017, demand is forecast to increase by 52% compared to 2014.
This year it forecasts module installations to reach 59 GW globally, driven mainly by growth in U.S. and China.
Looking ahead for the USA, two very different scenarios are forecast, depending on whether that nation’s solar Investment Tax Credit (ITC) program is extended. The ITC is a 30 percent tax credit for solar power systems installed on residential and commercial properties.
According to the Solar Energy Industry Association (SEIA), the ITC has seen annual solar installation jump by over 1,600 percent since implementation in 2006 – a compound annual growth rate of 76 percent. The ITC is due to expire at the end of next year, but there’s been a push to extend it another 5 years.
REC says if the USA should allow the ITC to expire per current policy, 54GW of solar will be added between 2015 and 2022. However, if it should be extended 5 years, 76 GW will be added
For Europe, REC expects more conservative market developments for 2015/2016 at ~7 GW due to slower markets, mainly in Germany and the UK. However, from 2017 the company see stronger residential and commercial markets as a result of the energy storage revolution – 8GW in 2017, 10GW in 2018.
REC’s Q3 2015 Solar Market Insight can be viewed here (PDF).
