Saturday, February 22, 2020

Germany, Spain, Ukraine and Netherlands are the leaders of European PV market

There was a sharp growth during the  last year in solar demand across multiple markets in Europe after several years of modest growth. Demand is concentrated within the top four markets of Germany, Spain, Ukraine, and the Netherlands. At 13 GW of installations, they are collectively representing almost 60% of the European  PV market in 2019.
This rapid rate of utility-scale growth allowed ground-mount installations to pass rooftop installations in 2019 for the first time in four years. Utility-scale installations are expected to account for 43% of total European installations in 2019, but distributed PV (both residential and commercial) are remaining a large and growing market segment, as self-consumption becomes increasingly important. 
While utility-scale installations will grow strongly in some of these booming European markets, challenges associated with large solar deployment still exist. In some markets such as Spain, grid connection issues can slow down solar installations. Other markets may decrease as they change market drivers. One example of the latter is Ukraine, which is switching from a feed-in tariff to a tender-driven market.
PV installations in Europe now reached a new benchmark, with more than 19 markets expected to have an installed base above 1 GW by the end of 2019 – compared to a decade ago, when only Germany, Italy and Spain had reached that mark.
The global solar market is highly interconnected and sensitive to big changes in demand, such as, for example, the decline of a large market like China in 2019. The solar supply chain has now reached a scale where suppliers will seek new growth opportunities instantly if key markets fail to show expected demand. The past year has been a clear example, as the failure of China to reach the same heights as in 2018 lead to module and inverter suppliers quickly expanded internationally and substantially lowered prices to get into new markets.