First Solar Inc (FSLR.O), the world's top solar power company by market value, hopes to grow sales in Italy this year despite regulatory uncertainty in that pivotal European market.
The world's largest maker of thin film solar modules is among the main suppliers to Italy, which in 2010 was the world's No. 2 market in terms of new installed photovoltaic capacity that turns sunlight into power.
"In 2010, we did about 200 megawatt of sales for projects in Italy and we hope to grow this number this year," Brandon Mitchener, the U.S. company's director of corporate communications for Europe, the Middle East and Africa, told Reuters on the sidelines of a conference on Monday.
Italy is the fourth-biggest market for First Solar after Germany, the United States and France, with Italian sales accounting for 12 to 13 percent of the group's global sales in 2010, Mitchener said.
First Solar Chief Executive Rob Gillette said in February that his company would sell 15 percent to 20 percent of its 2011 module production in Italy this year.
Mitchener said on Monday it was "a bit difficult to make predictions about the future of the Italian market because of what is happening with new incentives."
Shares in First Solar closed down 1.5 percent at $137.53 on Monday as uncertainty over the European market persisted.
Italy's solar market has boomed since 2007, when the government boosted production incentives, attracting the world's biggest photovoltaic module makers, such as China's Suntech Power Holdings Co Ltd (STP.N), Trina Solar Ltd (TSL.N) and Yingli Green Energy Holding Co Ltd (YGE.N) and U.S. company SunPower Corp (SPWRA.O).
The government wants to cut the support to ease the burden on consumers, who pay for the incentives in power bills. Rome was due to approve a new incentive decree by the end of April, but the government is still ironing out details.
Many investors and solar sector operators have said uncertainty about the new support regime has put their future business plans for the country on hold.
Mitchener said First Solar was not immune to the Italian problems but was in a better position than many competitors because it has long-term contracts with customers who commit themselves to taking large volumes of modules for big-size roof-top and ground-mounted systems.
The company has been growing in the U.S. market and is looking at other markets, such as India, Australia and China, to compensate for a possible slowdown of business in Italy and other European countries where incentives are expected to be cut, Mitchener said.
