Global Solar Installations to Grow 27% to Reach 181 GW in 2021: IHS

According to a report by IHS Markit, the new global solar photovoltaic (PV) installations are expected to grow by 27 percent this year to a record 181 gigawatts (GW), led by China, the United States, and India. However, new solar PV installations were at 142 GW in the year 2020.

Although this year the prices for solar PV modules are higher than last year, along with long delivery times and rising freight costs, demand should grow in the second half of this year.

In 2021, the strong growth is mostly coming from the top three solar markets which are, China, U.S., and India. However, there were some notable projects that were delayed from 2020 and due to very strong shipments in Q4 2020, part of those solar projects will add on in the year 2021.

Interestingly, from China, IHS Markit expects will install 60 GW of solar PV this year, while the United States will add 27 GW.

While India may have to wait as it could mark an increase in demand for modules from August, when a duty-free import window opens until April 2022. “Given the strong backlog of projects that piled up in India in 2020, as much as 12 GW could be installed in 2021,” the report stated.

Consequently, in Europe, a large number of tendered projects are expected to be completed this year. Though not all projects that were planned for installation in 2021 will go ahead, due to lower-than-anticipated returns, it revealed.

Also, the report discloses that the module prices have increased due to peaks for some materials such as polysilicon, copper, and steel.

The report goes on to add that the potential to undertake climate change and overcome greenhouse emissions has led to a “green wave” of investment in alternative and renewable energy forms like wind and solar, amidst many countries getting independent of dirtier coal and oil for energy generation.

Earlier in December 2020, IHS Markit announced that the Annual global investments in Green Hydrogen (hydrogen production powered by renewable sources) are now expected to exceed USD 1billion by 2023. It stated that the increased investment is possibly connected to the falling costs and policy support from governments, shifting towards low carbon emissions.

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Bhoomika Singh

Bhoomika Singh

A BSc who opted to do her PG in Broadcast Journalism, Bhoomika is very keen to tell stories that matter about the issues that matter.

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