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Technological Efficiency and Attainment of Grid Parity Drives Global Solar Power Market
July 7, 2016 | PRNewswireEstimated reading time: 1 minute
The Asia Pacific countries of China, India and Japan will account for more than 80% of all solar installations, challenging the PV (photo voltaic) market to expand. Since regulations still have a major influence on a country's readiness to adapt solar power, national regulations are at the centre of attention. Pro-solar incentives across the globe and the pledges made at the COP 21 summit will ensure that the market for solar PV continues to grow exponentially over the next five years. Economic growth, urbanization and greater electrification have spurred growth in the APAC market, and its share is likely to increase to 64.1% by 2020. China and Japan will continue to lead the region with compelling FiT (feed-in tariff) rates and capacity-based rebate programs. Investments in grid infrastructure, especially in remote off-grid locations, will drive demand in the emerging markets of Latin America and Africa.
"Spiralling cost declines of solar panels not only support grid parity, but also bring increased uptake of decentralized solar energy in this low-price era," claims Frost & Sullivan Director Energy & Environment John Raspin. The solar power market has evolved into a key energy source on the global stage. While decentralized energy is fast gaining attention over centralized power generation, renewable energy will continue to be an attractive source of energy. The reduction of emissions from greenhouse gases (GHGs) and other pollutants is a priority for many countries, while energy efficiency is one of the most cost effective ways to enhance security of energy supply.
In many ways, energy sufficiency is one of the drivers impacting growth of the solar power market. Climate and energy policies as well as long-term, price-based instruments such as subsidies and taxes can significantly increase the penetration and innovation of renewable energy sources. Grid integration of renewables and investment in energy storage initiatives are other market enablers for solar PV.
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