Sharp declines in PV equipment bookings

Photovoltaic equipment spending for c-Si ingot-to-module and thin-film panels is forecast to decline sharply in 2012, down 47% Y/Y from a record level in 2011, according to the latest Solarbuzz PV Equipment Quarterly report.

The collapse in equipment spending - coming immediately after Y/Y revenue growth rates of 84% in 2010 and 33% in 2011 - is a consequence of ambitious c-Si cell/module and thin-film capacity expansions committed during 2010 and 2011 by tier 2 and tier 3 PV manufacturers.

Coupled with market oversupply and strong inventory build, this capacity-demand imbalance will usher in a significant cell manufacturer shakeout phase during 2012 to 2014.

Equipment spending for Q2’11 declined 3%. This represents the first negative growth rate for PV equipment spending since Q2’09, indicative of an inflection-point within the current PV capital equipment spending cycle.

The PV book-to-bill ratio also dipped below parity in Q2’11, continuing its sequential Q/Q downward trend from a high of 1.74 in Q2’10, as new order intake reflected the slowdown in capacity planned for 2012.