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Newsletter October 2011


Greece Rated Highly Attractive as IRR Solar Market

According to a report by Lux Research, Greece is well positioned for household photovoltaic systems. 

The report found that solar demand will shift to a broader range of markets over the next five years, based on an analysis of the levelised cost of electricity (LCOE) and internal rate of return (IRR) across 156 countries, states and regions. Japan, China and India will emerge to drive significant volumes, and the U.S. will come forth as a heavyweight, given the government's support of tax equity through 2016 and a myriad of state-level programmes.

"The global solar market for grid-connected systems will grow from 15.8 GW in 2010 to 37.5 GW in 2016, a compound annual growth rate of 15.5 percent," says Lux Research Analyst Matt Feinstein. "However, price declines will outpace volume increases, at least at first.

Leading IRR markets such as New Jersey, Australia and Greece attract attention this year, according to the report. With subsidies, a surprising number of markets have IRRs worthy of investment by project developers today.

Today, the most attractive residential markets are Australia (52% subsidized IRR), Greece (32%) and Ontario (27%), while the most attractive commercial markets are New Jersey (42%), Portugal (37%) and Hawaii (34%).