Impact of COVID-19 on the Global Solar Panels Market
COVID-19 is proving to be a significant challenge for the renewable power industry, resulting in a shortage of hardware components supply. Due to the lockdown enforced by countries worldwide, solar construction and development growth is slowing down. As per Bloomberg New Energy Finance (BNEF), the global solar outlook is dropped from 152 GW to 143 GW. Moreover, China being the largest market for solar energy generation, the slowdown in the country’s economic growth has affected the overall generation and renewable energy investment globally. China is a leader in terms of solar photovoltaic installations and the production of solar PV panels. According to Global Energy Data, the country accounts for more than 35% of the global solar installation. China’s annual installation was expected to reach around 30 GW by 2020. However, COVID-19 is likely to impact solar installations. Furthermore, the US is dependent on solar PV production from China.
FIGURE: PLANNED US ELECTRIC GENERATION CAPACITY ADDITIONS IN GIGAWATTS, 2020
The outbreak beginning in China has led to a shortage of supply in the US. Solar panel manufacturers are facing delays due to a shortage of raw material and labor force, leading to shut down businesses and delayed project schedules. Two major issues faced by the solar industry include disruption in the supply of components such as panels and inverters and labor shortages to limit social contact. Large investments have been put on hold by rooftop solar house owners. Similarly, in India, the pandemic has caused delays in the procurement of solar modules, panels, inverts, and other components, which is leading to a delay in the commissioning of solar projects.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Source: US Energy Information Administration (EIA)