Strong Growth Ahead for Solar Modules

According to IHS Markit, more than 180GW of solar will be delivered worldwide this year, despite setbacks such as increasing module prices and supply chain restrictions. The consulting firm expected a 27 percent year-on-year increase in solar projects for 2021 in its solar deployment forecast report, with total installations hitting 181GW.

This figure is generally consistent with other predictions for the year. According to BloombergNEF’s updated 2021 prediction, just over 184.5GW will be delivered this year. However, it projected that up to 209GW could be deployed this year, depending on projects in high-growth markets such as China and the United States.

According to IHS, the solar industry will overcome hardship such as relatively high module prices, prolonged project delivery schedules, and increasing freight costs, as this generation class is now going to a new cycle that emphasizes three crucial factors: profitability, technological leadership, and integration.

This year, IHS anticipates good output from a number of key markets. China is expected to install more than 60GW of new solar power, while the United States is expected to install 27GW and India is expected to install up to 12GW to take advantage of a narrow period in which solar import taxes are exempted. Europe will also see an increase in project completion as a result of tenders conducted last year.

The upstream solar market, on the other hand, will shift to a new focus. Profitability is given a higher priority. Greater integration is also anticipated, with IHS estimating that the top ten manufacturers will produce nearly three-quarters of modules.

Although top module manufacturers sold out for the first half of 2021, Josefin Berg, research manager for Clean Energy Technology at IHS Markit, said that there was no evidence of a decline in module prices in July and no significant material bottlenecks, leading to optimism in the research firm’s bullish projections.

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