Impact of COVID-19 on the Global Thin-Film Photovoltaic Market
COVID-19 is proving to be a significant challenge for the renewable power industry, resulting in a shortage of hardware components owing to disrupted supply chains. Due to the lockdowns enforced by countries worldwide, solar construction and development are slowing down. As per Bloomberg New Energy Finance (BNEF), the global solar outlook has 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 thin-film photovoltaic installations and the production of thin-film photovoltaic panels. According to Global Energy Data, the country accounts for more than 35% of the global solar installations. China’s annual installation was expected to reach around 30 GW by 2020. However, the COVID-19 crisis is likely to impact solar installations.
Planned Electric Generation Capacity Additions in the US, 2020 (In Gigawatts)
Furthermore, the US is dependent on thin-film photovoltaic panels from China. The outbreak has led to supply shortages in the US. Thin-film photovoltaic panels manufacturers are facing delays due to a shortage of raw materials and labor, leading to the closure of businesses and delayed project schedules. Two major issues faced by the solar industry include disruptions in the supply of components such as panels and inverters and labor shortages due to social distancing restrictions. Large investments have been put on hold by numerous end-users due to economic uncertainty. Similarly, in India, the pandemic has caused delays in the procurement of thin-film photovoltaic modules, inverts, and other components, which is, in turn, delaying the commissioning of solar projects.
Source: Primary Experts, Secondary Sources and MRFR Analysis
Source: US Energy Information Administration (EIA)