Global solar instalments in 2016 are expected to reach 64.7 GW, up from the 57.8 GW in 2015, according to global clean energy communications and consulting firm, Mercom Capital Group. India’s solar instalments are also forecasted to significantly grow to 3.6 GW, 1.5 GW up from 2015 figures.
“The largest markets in 2016 will again be China, the United States and Japan; the United States is set to overtake Japan as the second largest solar market behind China. These three countries will account for about 65 percent of installations next year” said Raj Prabhu, CEO and co-founder of Mercom.
The firm attributes India’s growth to the governmental target of 100 GW by 2020 and says that despite concerns raised about the viability of these projects due to unrealistically low bidding rounds, growth would continue.
The report says that China will continue to be the largest solar market in the world, installing approximately 19.5 GW in 2016.
China has installed almost 10 GW in the first three quarters this year, well ahead of 3.79 GW installed in the same period last year. Curtailment and delayed subsidy payments remain a challenge. The announcement of an additional 5.3 GW installation quota with a completion deadline of June 2016 for provinces that have met or exceed their installation goals is likely to help China get close to meeting its installation goals in 2015, and ensures a strong 2016. Additionally, Beijing is expected to increase its 2020 installation target to 150 to 200 GW.
In the US, Mercom estimates that about 13 GW of solar capacity will be installed next year, making it the best year for installations in the country so far. The report says that the American solar market is expected to experience robust growth over the next 13 months as the industry rushes to complete projects before the 30 percent investment tax credit (ITC) drops to 10 percent.
Japan is expected to install about 9 GW of solar in 2016 and in the European market, the UK is expected to lead in terms of PV installations followed by Germany and France. However, the report states that EU tariffs on Chinese solar panels which were recently extended would harm the solar development momentum in the continent.
Europe recently extended import tariffs on Chinese solar panels which could result in tariffs remaining for a few more years, which will be detrimental for solar project development in Europe.
BW Reporters
Simar Singh is one of the youngest members of the BW team. A fresh graduate from IIMC, she also holds a degree in political science from LSR. She enjoys covering power, startups, lifestyle and a little bit of tech.
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