Novus Light Home year of the light

Solar Novus Blog


Global Solar Installations Expected to Exceed 45GW This Year

Demand outlook for the solar industry remains strong and global solar installations are forecast to be around 46GW in 2014, according to the latest quarterly update from Mercom Capital Group, llc. Global installations in 2013 are estimated to come in at about 37GW, in line with Mercom's forecast.

Mercom forecasts global solar installations up to 46GW in 2014

Within the 14GW goal, China has set an aggressive target of 8GW for distributed generation and another 6GW for utility-scale projects with specific quotas in individual provinces. Mercom expects Chinese installations to be in the 13GW range in 2014. 

The Chinese government decision to let Shanghai Chaori Solar Energy Science & Technology Co. default on its bond issue shows that they are serious about not bailing out companies that don’t fit strict manufacturing norms. Though the effect of this case on the larger solar market may be minimal, Mercom will be watching the Chinese financial markets closely as major economic indicators are currently weak.

Japan is expected to install solar in a similar range (7 to 7.5GW) to last year. Japan faces some challenges, however, as the Ministry of Economy, Trade and Industry (METI) weeds out projects that, although approved, are unlikely to be built. In addition, the country’s generous feed-in-tariff (FIT) is likely to be reduced in the next month and a three percent sales tax increase could further dampen demand.

The US solar market is forecast to install 6.4GW in 2014, spurred by utility-scale projects and an energetic residential sector. Solar lease has been the big driver of residential installations, with third party finance companies raising $3.3 billion in residential and commercial tax equity funds in 2013. System costs in the United States are still high compared to Germany, but innovative financial instruments, including asset-backed securities, third party finance and YieldCos, are helping bring the cost of capital down. Trade disputes, however, continue to be an issue with the United States.

PV installations in Germany are forecast to be around 2.75GW in 2014 . Germany’s role in the solar market continues to decline as policy support retreats. In a bid to reduce price hikes in electricity, the latest policy proposals include bringing the installation levels closer to 2500MW a year. There is a proposal to replace the FiT with a tender system in 2017 in addition to a requirement that new solar projects greater than 500 kW market and sell electricity directly to consumers.

Other markets highlighted in the update include the United Kingdom and India, both of which installed approximately 1GW in 2013 and are expected to install similar numbers in 2014. Mercom revises its forecast quarterly to reflect on-the-ground conditions.

Labels: solar installations,Mercom,US,China,Japan,FiT

Back Back to News

Innovative Solar Products

Copyright © 2015 Novus Media Today Group, LLC. All rights reserved. Website design and build by MM Design.