China solar photovoltaic (PV) market is expected to grow at a CAGR of more than 19.5 % during the forecast period. The primary drivers of the market include the rising demand for renewable energy and electricity, reducing GHG emissions, and the declining cost of solar PV systems. The cost of solar modules produced in China is 8-10% cheaper than in other countries. Use of Effective energy-efficiency law helps not only cover rising energy demand with solar power, but also replacement and phase-out of fossil fuels. The increasing demand for energy on the account of the rising population and increasing industrialization is anticipated to boost the solar power market in China. However, the market is restrained by the snowfall and rain-prone areas.
- The ground-mounted segment is expected to dominate the market during the forecast period.
- Solar energy is becoming inexpensive in comparison to other conventional energy sources due to innovations in the solar sector that have reduced the average selling prices of solar PV. With the anticipated improvements in technology and upgradations in the solar photovoltaic market, increased supply of panels in china, the capital costs are expected to stabilize at lower levels. As a result, investors/developers are expected to focus on commercial viability of solar projects, in turn, is expected to create an opportunity for solar PV market in china in the near future.
- Solar Photovoltaic (PV) is expected to witness significant growth in the market during the forecast period.
Key Market Trends
Ground Mounted to Dominate the Market
- China is endowed with a very vast solar energy potential. China already has more solar capacity than any other country in the world, with a total installed capacity of 205,493 MW, in 2019.
- In 2018, the market share of ground-mounted solar PVs was high, as they are mainly used for commercial and industrial purposes.
- The share of the ground-mounted segment is anticipated to increase over the forecast period, increase, supported by the falling solar PV prices, government supportive policies and regulations, and widespread adoption of ground-mounted solar systems, primarily in the commercial and industrial sectors.
- Ground-mounted solar for commercial projects is economical due to the economies of scale, the number of installation, and operation and maintenance efficiencies. On the other hand, rooftop solar is used in small residential projects, less than 1 MW.
- Increasing competition and technical advancements in large-scale utility projects have led to cost reductions in both installation and operation & maintenance prices.
Solar Photovoltaic (PV) is to Witness Significant Growth in the Market
- China’s solar PV industry reached an important milestone in 2019 as its cumulative installed capacity exceeded 200 GW and ended the year at approximately 204.8 GW.
- China is home to many sizeable solar farms including the huge 850 MW Longyangxia Dam facility on the Tibetan Plateau, with its four million panels. And the largest solar plant in the world at the moment is in China’s Tengger Desert its capacity exceeds 1,500 MW.
- China added 44.26 gigawatts (GW) of solar PV in 2018 – this increased total installed capacity by 34%.
- As of 2018, 177.5 TWh were generated from renewable solar energy sources with a growth rate of 50.7% with the previous year.
- With the government promoting the solar installation in the rural area by providing subsidized solar panels and other incentives, the solar PV installation is ought to increase during the forecast period and is expected to drive the market.
The China solar photovoltaic market is fragmented. Some of the major key players in the market include Trina Solar Limited, JinkoSolar Holding Co. Ltd, wuxi suntech solar power co., ltd., China Sunergy Co., Ltd., and JA Solar Holdings Co. Ltd.
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