Impact of COVID-19 Outbreak on the Global Solar Street Lighting Market
The outbreak of COVID-19 has brought the world to a standstill, disrupting businesses globally. Solar energy has experienced significant growth over the past two decades. However, the crisis caused by COVID-19 has considerably disrupted this momentum. Governments are central in tackling these challenges and determining the pace of deployment of solar energy in the near future. The solar industry at large affected by the pandemic's impact and its uncertain future is causing concern for many businesses. Moreover, as China is 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. As far as India is concerned, the COVID-19 outbreak has come at a time when the country’s solar project execution is at its peak in the last quarter of the financial year. The country has ambitious targets for achieving the 100GW solar energy target by 2022. As of January 2020, India has installed approximately 35GW of solar energy projects. A standalone solar photovoltaic street lighting system features PV (photovoltaic) modules for charging batteries. Thus, this crisis has slowed down the production of PV modules and is affecting the generation of power using solar photovoltaic cells. Moreover, the US is primarily dependent on solar PV production from China. The COVID-19 outbreak beginning in China has led to a shortage of supply of solar PV in the US.
FIGURE: NET GENERATION FROM SOLAR PHOTOVOLTAIC, 2012–2019 (MWh)
According to the latest report by IRENA, Asia-Pacific had a total solar installed capacity of 52,144 MW in 2019, which has decreased by 25% from the previous year. The COVID-19 outbreak is also delaying project schedules in the US solar energy market due to disruptions in supply chains and reduced demand in the fast-growing solar industry. Two major issues faced by the solar industry include disruption to supplies 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, which is also expected to restrict the growth of the global solar street lighting market.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Source: U.S. Energy Information Administration