Calif Solar Mkt Seen Growing Despite Slow Economy-Regulator

SAN FRANCISCO (Dow Jones)--California's solar panel market - the world's fourth largest - is expected to continue growing in 2009, despite the recession and financial crisis, due to lower prices and greater availability of solar panels, the California Public Utilities Commission said Monday.
About 1,288 California home and business owners applied for state solar-power incentives in November, the most applications filed in any month since the program started in January 2007, said Molly Sterkel, supervisor of the California Solar Initiative, an incentive program administered by the Public Utilities Commission. Interest in the incentive program is expected to grow in 2009, Sterkel said, speaking at a meeting of California energy regulators.
A widespread expansion of manufacturing facilities among solar panel makers is widely expected to lead to an oversupply of solar panels, as well as lower prices in 2009, Sterkel said, citing predictions from analysts and solar manufacturers. An oversupply could be absorbed in California, where demand for solar panels has outstripped supply, she said.
An oversupply of solar panels "is big news for solar in California," Sterkel said. "For years, we've been in a supply-constrained environment, even though we've had demand growth."
California's $3 billion Solar Initiative program is among the most generous state solar incentive programs. Meanwhile, retail power prices here are among the highest in the nation, making the prospect of switching to self-generated rooftop solar power an attractive option for utility customers who can afford the $20,000 to $40,000 capital outlay, or can tap third-party solar-power financing, a growing industry. California retail power prices average 12.82 cents a kilowatt-hour, compared to a national average price of 8.9 cents a kilowatt-hour, according to the U.S. Energy Information Administration.
Solar module makers that could benefit from a growing California solar market include Sunpower Corp. (SPWRA), Evergreen Solar (ESLR), First Solar Inc. (FSLR), Energy Conversion Devices (ENER), JA Solar Holdings Co. Ltd (JASO) and MEMC Electronic Materials (WFR), among others.
-By Cassandra Sweet, Dow Jones Newswires; 415-439-6468; cassandra.sweet@dowjones.com