Solar photovoltaic capacity to reach 480 gigawatts by 2020, report finds
by Cleantech Canada Staff
Asia-Pacific region to lead growth areas in solar PV
Growth in solar PV is expected to reach new heights in sun belt countries over the next five years. PHOTO: Mhassan abdollahi, via Wikimedia Commons
SAN FRANCISCO, Calif.—The worldwide solar photovoltaic installed capacity for 2020 will be more than 480 gigawatts, growing at a CAGR of at least 19 per cent, according to a new Hexa Research study.
The report identifies the key factors contributing to growth as higher global emphasis on clean energy production and governmental support in the form of beneficial policies for development of the solar PV market. Sunbelt countries in particular are expected to gain from regulations like Feed-in-Tariff, which is a preferential rate program.
Hexa Research also foresees falling prices of energy generated using Solar PV in future, largely due to huge increase in capacity, especially in China.
“The global solar PV market demands that companies employ innovation and differentiation strategies as a way to grow. Alliances and partnerships are crucial for gaining competitive edge,” the report says.
Utility Solar PV, with more than 44% share in the total installed capacity, was the biggest end use segment in the global Solar PV market in 2012, according to Hexa Research, and the segment is expected to experience the fastest growth in the coming years.
Countries such as Germany, France, and Spain, among others led to Europe hosting the largest capacity of solar PV recently. However, in future, most demand will be generated from rapidly developing Asia Pacific markets such as China, India and Taiwan, with factors like low raw material costs and supportive regulations spurring growth. Lower than expected development of solar PV in high-potential nations like Brazil and Chile in Latin America and Saudi Arabia in the Middle East may hinder market growth, however.
