Swiss companies are emerging as leaders in solar energy, driving technological advances and securing a rising share of the fast-growing market, as consumers look to alternative forms of energy to fight climate change. Swiss companies have benefited because of their technological know-how, good contacts and the country's reputation for quality machine building, Sarasin sustainability analyst Matthias Sarasin said. "The overall climate for solar energy is positive. Swiss companies have established themselves in certain niche markets, for example in the supply industry," said Fawer.

Worries about climate change, rising oil prices, attempts to break dependence on energy imports and government incentives to move away from fossil fuels have boosted investment in solar energy. ZKB analyst Stefan Gaechter estimates the photovoltaic market to be worth around US$25 billion worldwide in terms of sales and its value could rise to US$100 billion in the next few years.

Switzerland's 70 solar energy companies are expected to have a turnover of some 450 million Swiss francs (US$370.1 million) in 2007. Among them, Meyer Burger has seen its shares, which made their stock market debut last November, more than triple in value so far this year, boosted by demand for solar energy stocks and a series of large orders. "Meyer Burger is ... right up there. The entire branch is growing so quickly at a worldwide level and Meyer Burger is benefiting by winning huge orders," Fawer said.

The company, the world's leading maker of machines used to cut silicon blocks for the solar energy and semiconductor industries, recently won an order worth more than 160 million Swiss francs until 2009 from China's Glory Silicon Energy. Swiss technology group Oerlikon, a market leader in machines to produce thin film solar cells which use 200 times less silicon than conventional solar cells, also has a rosy outlook for its solar unit. It expects sales to rise to 20 percent of total group turnover and sees sales of 300 million francs in 2007. Sales at the unit currently account for 5 to 10 percent of overall sales.

"Further growth is likely in this area, as thin film solar cells currently only account for around 10 percent of solar cells," said ZKB's Gaechter. Solar cell makers are under pressure due to limited supplies of high-grade silicon, the material that is used in solar cells, boosting demand for thin-film solar cells, which are a cheaper alternative.

More opportunities in the industry are likely after researchers at Swiss university Ecole Polytechnique Federale de Lausanne developed an alternative type of solar cell, which does not need any silicon. The technology has been licensed to companies in Japan, Switzerland, the United States and the United Kingdom.

(By Katie Reid, Planet Ark, 11/07/2007)