Basic Optimism for Solar Power Mixed with Consumer Cost Confusion, Survey Says

---

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--A survey conducted in China, India, Japan and the U.S., which are countries with high solar power growth potential, by Applied Materials (NASDAQ:AMAT) (San Jose, California) found that consumers in these markets are optimistic about the future of solar power.

The 2012 survey is Applied Materials' fourth annual survey on solar awareness, and found that alongside optimism for solar power, many consumers had a mixed understanding of the current cost and adoption rates of solar technology, highlighting what is arguably the greatest challenge to solar energy use: the lack of consumer awareness.

"Solar power makes sense for our planet and for our children, and we need to recognize that the solution to our energy needs is already in our hands," said Dr. Charlie Gay, the president of Applied Materials' solar division. "By 2050, the world population is expected to plateau at 9 billion people, and at that time it will be imperative we have a sustainable energy source in place that has the potential to solve our energy challenges for perpetuity. Since the planning horizon for utilities extends over time periods of 30 to 40 years, the opportunity to influence the world's long-term energy supply is now."

In 2011, 12 months ago, industry data suggested that by 2020, 98% of the world's population, would have achieved grid parity, or solar energy power that is cost-competitive with traditional energy prices. But data now suggests this milestone will be achieved by the end of 2012. Among survey respondents, 55% recognize this shift and believe that that solar is less expensive than traditional energy sources, such as coal.

Indian respondents proved most likely (68%) to believe solar was less expensive. But in Japan, most (51%) believed solar power was more expensive compared to traditional sources. Of the 35% of international consumers who believe that solar power is more expensive, 39% believe that it will become equal to, or less expensive than, traditional power within nine years.

Gay added that solar panels now cost less than $1 per watt, which means that 100 countries have achieved grid parity. The explosion of global solar PV installations in the past year is due to the dramatic and accelerated rate of cost reductions in the supply chain. This has resulted in significant decreases in end-market costs, and a continued focus on technology innovation will further drive down the total cost of solar electric power plants, he said.

In the U.S., 58% of respondents were optimistic about the growth of the solar market creating jobs, in line with 46% of all respondents. China and India had 49% and 48% of respondents, respectively, who were positive about job growth. Japanese consumers were more cautious, with 40% believing that there will be no impact on the job market. Of the total surveyed internationally, 25% think that solar will reduce the number of jobs. Downstream activities, after the panel leaves the factory, will provide 50% of the jobs in the solar sector.

The projected rate of the adoption of solar energy to 15,000 megawatts (MW) by 2015 was considered to be too slow by 58% of the Chinese respondents, and Indians (51%) considered the target of 6% of renewables in the national energy mix by 2022 as too slow.

Only 17% correctly identified Germany as leading in solar panel installations, with 26% identifying the U.S. and 22% identifying Japan. The top countries for solar installations in 2011 were: Germany, Italy, Spain, the U.S. and China.

The survey was conducted online between May 25 and June 5, 2012.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.