Global Solar PV Installed Capacity Will Exceed 756 GW By 2025, According To GlobalData

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The cumulative global installed capacity of solar PV is set to exceed 756 GW by 2025, according to new figures from research firm GlobalData.

According to the research and consulting firm’s latest report, Solar Photovoltaic (PV) Market, Update 2016 – Global Market Size, Market Share, Average Price, Regulations and Key Country Analysis to 2025, the cumulative global installed capacity of solar PV is to continue its long-term growth from 271.4 GW in 2016 to an impressive 756.1 GW by 2025. This will be a decline in growth from the 2006 to 2015 period — which saw a compound annual growth rate of 50.1% compared to the predicted 13.1% growth rate over the next decade — it is still an impressive growth rate in and of itself, and will be specifically impressive in China.

Specifically, according to Pavan Vyakaranam, GlobalData’s Project Manager covering Power, China will retain its position as the largest solar installation market in the world, currently accounting for 19.7% of the global total, and growing to 31.3% by 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,” Vyakaranam explained. “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%.

“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,” Vyakaranam continued. “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 roof-top PV, while the National Energy Agency has been promoting off-grid solar installations.”

These same policy mechanisms will serve as factors driving growth in other parts of the world, according to the authors of the report.

“Policies such as net metering, FiTs, and renewable portfolio standards have had a key impact,” said Vyakaranam. “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.”