Overview of the "solar industry" in 2019 by ExterneXXI
- ExterneXXI Team
- Aug 19, 2019
- 3 min read
Updated: Aug 21, 2019
On the 17th of August, Externe XXI attended an integral event of the solar energy industry - the 11th Guangzhou International Solar Photovoltaic Exhibition 2019. This event takes place in the same building as the Canton Fair, the biggest trade exhibition in the world that we have mentioned in our previous posts, and it highlights the importance and popularity of this expanding industry. Visitors from all over the world came to see major Chinese manufacturers and negotiate the best conditions for future deals. This time more than 40 000 visitors arrived in order to meet with over 600 exhibitors !
Why is the "solar industry" so important?
Firstly, the solar energy domain has been showing exponential growth for the last decade and it is predicted to continue its increase in the future. According to the specialists from Allied Market Research: "The global solar energy industry is expected to reach $422 billion by 2022 from $86 billion in 2015, growing at a CAGR (Compound Annual Growth Rate) of 24.2% from 2016 to 2022". Such a high growth rate will surely attract those who are looking for investment opportunities. Mainly, this fast development of the industry can be explained by the increased levels of global pollution and the willingness of many governments to subsidize the "solar users" with different incentives and tax rebates. For example, the Indian Ministry of New and Renewable Energy is covering up to 70% of the solar power station installations costs depending on the region, and also providing subsidized loans for the households willing to install solar power station their homes. In exchange, the Indian government obtains the right to purchase excess energy from households at a lower price. All such attention to solar energy can be explained by the fact that it dramatically reduces greenhouse gas emissions (like carbon dioxide CO2), which are responsible for climate change. As stated by the U.S. Energy Information Administration: "Switching from fossil fuels to solar power has the same emissions reduction effect, [ for the average household], as planting around 150 trees every year".
Secondly, due to increased competition and technological progress, the prices for solar equipment have dropped dramatically. In accordance with Wood Mackenzie Power & Renewables: "Prices as of Q1 2019 are at their lowest levels in history across all market segments. An average-sized residential system has dropped from a pre-incentive price of $40,000 in 2010 to roughly $18,000 today". This pattern makes solar power stations accessible for a much larger number of households, which means the increase in both supply and demand. Additionally, to have the full picture of price range decrease, we need to mention the soft costs (like labor, preparations, supply chain, inspections and permissions, customer acquisition, etc.). Almost all the aforementioned costs have decreased due to the effects of competition and governmental support. The only exception is the customer acquisition costs, which became more substantial due to the fact that companies are now fighting for every new customer.
How Externe XXI is participating in the "solar industry" growth?
Nowadays it has become very difficult to ignore the importance of solar energy. That is why so many companies are trying to enter and take part in the predicted growth. We, at Externe XXI, are no exception. Currently, we are suppling the full range of products needed for the construction of solar power stations in countries of Central Asia and Eastern Europe: inverters, controllers, storage batteries, PV panels, cells, modules, PV brackets, cables, connectors, installation equipment. The experienced gained in this domain and good relations with our suppliers and trade partners help us to keep prices at a competitive level and services at an exceptional level.
If you are interested to know what is the total cost to build a complete solar power station with the productivity starting from 200kW per hour, feel free to contact us and we will provide detailed pricing together with information regarding payback period and other important policy details. Lets make this world a better place together!
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ExterneXXI Team
Max, thank you for your comments, we really appreciate it! Regarding the minimum productivity level of 200kW: starting from this quantity we are able to propose interesting prices for our clients. But if the quantity is too small, then all additional expenses like transportation and customs are making our offer not so attractive. However, if we have several smaller orders at the same time, so we can compound them in a big one. This will save costs and make solar power stations more accessible for an average household.
I just have a question about your minimum productivity level that you have mentioned in the article. Why starting from 200kW per month? It is a pretty big amount, I don't think that there are many households who really need such a powerful solar station...
Very good post! I just received my quotation regarding the solar power station and want to say that these guys are doing a graet job. Calculations are accurate and all costs are well explained. But be prepared to provide a lot of information about the location where you want to build it as it influences the productivity together with the payback period. For my case, the payback was 64 months.