Global PV market will maintain the growth momentum despite the impact of COVID
Continuous improvements in production technology and efficiency have led to a substantial drop in photovoltaic ("PV") installation costs in recent years, resulting in the use of solar power becoming more competitive than conventional fossil fuels. But due to rising solar module prices and uncertainty in distribution and transportation due to the novel coronavirus ("COVID-19") pandemic, such expected cycle of declining production costs and market prices were invalidated in the first half of 2021.
According to International Energy Agency, PV systems of at least 139.4GW were installed and commissioned globally in 2020, representing an increase of approximately 21% compared to 2019 (114.9GW). Moreover, at least 20 countries installed more than 1GW capacity, passing the GW threshold in 2019.
In value terms Global Solar PV market size was estimated at USD 47.6 billion in 2021 and expected to reach USD 54.5 billion in 2028, growing at a CAGR of 2.0%
According to the statistics from the China PV Industry Association, in FY 2020, China’s new installed capacity reached 48.2 GW, representing a year-on-year increase of 60% and ranking first globally for consecutive 8 years. As of the end of FY 2020, the cumulative PV grid-connected installed capacity in China reached 253 GW, representing a year-on-year increase of 23.5% and ranking first globally for consecutive 6 years. The volume of PV power generation in this year reached 260.5 billion kWh, representing a year-on-year increase of 16.2%, and accounted for 3.5% of the total volume of power generation in China, representing an increase of 0.4 percentage points.
The global PV market has maintained the overall growth trend despite lockdowns in various countries, although the spread of COVID-19 has had some impact on PV installed capacity. In 2020, a substantial increase of 130GW in new PV installed capacity is recorded globally, representing a year-on-year increase of 13%, in terms of installed capacity, the United States is the second-largest market in the world.
The new feed-in tariff (FIT) policy in Vietnam prompted a wave of rooftop PV installations in the country. According to the press release issued by the Ministry of Industry and Trade in Vietnam, the new PV installed capacity in Vietnam reached 10.75GW in FY2020, out of which the rooftop PV installation capacity exceeded 9GW. This growth has established Vietnam as the third-largest market in the world. Furthermore, in light of the fall in the cost of PV power generation and the EU Ecological Agreement, the growth momentum in the European market will continue.
1 . Leading Solar Module Manufacturer in Focus: JinkoSolar
2 . Financial Performance of JinkoSolar
3 . Latest Quarterly Performance of JinkoSolar
- Total revenues were USD 1.33bn, up 8.1% QoQ, down 2.3% YoY
- Gross profit was USD 201.1mn, down 4.6% QoQ, down 13.3% YoY
- Gross margin of 15.1%, compared with 17.1% in Q2 2021 and 17.0% in Q3 2020
- Net income of USD 30.1mn, up 193.2% sequentially, up 27.3 times YoY.