MD DC DE VA Solar Energy Industries Association

Solar Growth

14

May 14

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This year promises to be a significant one for solar photovoltaic, financially as well as in its deployment. In the first quarter of 2014, an excess of 9 GW of new photovoltaic demand was added, this is 35% more than the previous first quarter record. With PV demand in the first quarter typically accounting for 20% of annual demand, this year is forecast to reach new heights and continue to break records within the solar industry.[1]

Much of the demand achieved in the first quarter is down to strong growth in Japan and the United Kingdom, with these two countries together accounting for more than one third of global solar PV demand in quarter 1. The huge growth seen in quarter 1 suggests that the true size of the solar industry today is almost 40 GW, meaning breaking through the pivotal 50 GW barrier may be possible by this time next year bringing the industry much closer to a rational supply and demand levels. [1]

This growth is also being reflected in renewable energy finance, with quarter 1 showing high growth for investment in solar. Total global funding through venture capital (VC), private equity (PE), debt financing, and other equity financings from public companies came to $7 billion, as opposed to $5 billion in quarter 4 of 2013. [2] Strong capital markets have seen venture capital up with several deals, while record amounts are continuing to be raised by third-party residential/commercial funds.

The increasing demand encourages more investment which in turn strengthens the solar market and adds even more demand. This circle of growth will see solar reach heights not seen before and increase the industries potential and scope. Investment is encouraging new research and technologies to constantly improve the way solar works and make it an even stronger contender to current practices of both renewable and non-renewable energy generation.

Sources

[1] “http://www.prweb.com/releases/2014/04/prweb11726457.htm”.
[2] “http://www.renewableenergyworld.com/rea/news/article/2014/04/solar-sector-keeping-investors-busy”.

 

 

 

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