Total installed solar PV capacity globally will surpass 756.1 GW by 2025, according to new projections published by GlobalData.
According to GlobalData’s latest report, the global installed capacity of solar PV will increase from 271.4 GW in 2016 at a compound annual growth rate (CAGR) of 13.1% to 756.1 GW in 2025. This will represent a decline in growth from the CAGR of 50.1% seen during the 2006–2015 period, but that is to be expected with solar commanding a larger and larger installed base.
Unsurprisingly, GlobalData predicts China will remain a considerable influence on the global renewables market over the forecast period, remaining the world’s largest solar installation market and increasing its share from its current 19.7% of global cumulative solar PV installations to 31.3% in 2025.
“China is a world leader in renewable energy investment, having proved itself a leader in wind power installation, wind turbine manufacturing, and solar PV manufacturing,” explained Pavan Vyakaranam, GlobalData’s Project Manager covering Power. “Solar PV capacity in the country will continue to grow during the forecast period, from 60.5 GW in 2016 to 236.7 GW in 2025, at a CAGR of 18.5%.”
Going on: “Solar PV will play a significant role in China’s future energy supply, as the government looks to this resource to meet growing energy demand. The central government, spurred on by growing environmental concerns, has planned many initiatives for rapid development of the domestic PV market. For example, China has implemented a Feed-in Tariff (FiT) scheme for utility scale and incentives for rooftop PV, while the National Energy Agency has been promoting off-grid solar installations.”
The key factors continuing to drive strong growth in China will impact other countries as well.
“Policies such as net metering, FiTs, and renewable portfolio standards have had a key impact,” Vyakaranam continued. “Indeed, the US and Canada have implemented all three of these policies, and will register notable CAGRs of 14.6% and 10.6%, respectively in cumulative installed capacity during 2016–2025.
“Finally, the formation of solar alliances will also drive growth globally. Those such as the International Solar Alliance formed at COP21 between India and France may improve the investment scenario in the solar energy sector, helping it to grow further in the near future.”