- Growth will be driven by favourable policies in China and Europe that are expected to add about 50GW and 27GW.
- India is also expected to add aboy=ut 9GW driven by auctions for several utility-scale projects across the country/.
The solar PV market recorded gains last year despite the Covid-19 pandemic; estimates put the global demand for solar modules at 140GW in 2020. Although the world is still facing the pandemic challenges, the solar PV market is expected to continue to grow post-covid. Analysts have estimated demand to reach 153.8GW, a 10 per cent year on year growth.
It is expected that deferred projects in 2020 – due to the pandemic and increasing costs towards the end of 2020 – will drive growth. Demand is also expected to strengthen in foremost PV markets across the world. China, the United States, Europe, and India will make up about 70% of the solar PV market. National policies such as China’s 14th Five-Year Plan commencement where unsubsidized projects will drive market growth and relaxed PV-to-inverter ratio regulations are expected to drive growth. This will likely result in 52 GW of module demand in China.
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While demand in the U.S. is expected to be slower than other markets, long-term the market looks optimistic. Demand is forecasted to grow to 24GW in 2021. The European market’s strong PV demand will likely continue this year as governments continue to transition to clean energy. Solar PV demand in the continent could reach 27GW. India is expected to recover from the pandemic and navigate conflicts with China, which has recently seen prices increase. The country has also auctioned several utility-scale PV capacities. It is expected that demand would reach 9GW.
Other notable markets include the Middle East and Latin America. The United Arab Emirates will likely see the addition of utility-scale projects in Dubai. Storing IPP driven growth is expected in Brazil and Chile. Meanwhile, the Vietnamese market will probably see growth slow after the demand boom of 2020.