Weekly Solar Industry Insights: July 8th - July 14th, 2024

Global Solar Capacity Expansion: The International Energy Agency reported that solar installations would increase to almost 310 GW in 2024. This growth is driven by lower module prices, increased uptake of distributed PV systems, and supportive policies for large-scale solar deployment. China, the European Union, the United States, and India are the primary contributors to this expansion.

Solar Installations Forecast: BloombergNEF updated its forecast for global solar installations, predicting that new PV capacity could reach 574 gigawatts (GW) in 2024. This follows the installation of 444 GW in 2023, indicating a continued strong growth trajectory for the industry.

Green Hydrogen Projects in Australia: The Climate Impact Corporation announced plans for two massive green hydrogen projects in South Australia and the Northern Territory, each leveraging 10 GW of solar PV. These projects aim to harness solar energy to produce green hydrogen, emphasizing the role of solar power in the broader renewable energy transition.

Technological and Market Developments: There were notable advancements and announcements, such as Mission Solar introducing new bifacial modules for commercial and industrial projects, and Volytica and Sinovoltaics launching a new analysis service for battery energy storage systems. Additionally, the Solar Energy Industries Association in the US proposed new standards for ethical solar practices to ensure transparency and safety in rooftop solar and storage installations.

European Solar Growth: Europe saw impressive solar capacity growth over the past two years, driven by the energy crisis and REPowerEU commitments. However, this growth is slowing due to the resolution of the energy crisis and limitations in grid infrastructure capacity. The annual growth rate for solar installations in Europe is expected to average only 4% over the next five years.

China's Solar Market: China continues to dominate the solar industry with its massive manufacturing capacity. However, the market is experiencing a slight slowdown due to grid infrastructure investments not keeping pace with solar project growth. This has led to challenges in interconnecting new projects and highlighted the need for more energy storage solutions.

US Solar Industry: The US solar market is gradually benefiting from the Inflation Reduction Act (IRA), which has spurred announcements for new solar manufacturing facilities. Although the implementation of new programs and incentives took time, the sector is now seeing increased manufacturing capacity and a growing early-stage pipeline of utility-scale solar projects. The distributed solar segment is also expected to benefit from specific tax credits for energy and low-income communities .

These developments highlight the rapid growth and significant investments in the solar industry worldwide, showcasing the continued commitment to renewable energy across major global markets.

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Information Source: PV Magazine/IEA/ BloombergNEF