Solar energy demand to rise 30% in 2021 – study

A strong rebound in renewable energy of at least 30 percent increase in demand for solar, a continued surge in green hydrogen growth, and a focus on recycling are among the key themes in clean technology in 2021, London–based global information provider, IHS Markit has said.

“Annual solar installations are predicted to grow by over 30percent in 2021 after volatile demand in 2020, triggered by the COVID-19 pandemic,” IHS Markit said in a report on 21 January, Top Clean Tech Trends to Watch in 2021.

China will account for 35percent of global solar installations in 2021, IHS Markit said, but the industry is much more geographically diverse than in 2010. “There are now 18 markets globally that have +1 GW cumulative solar installations, compared to just six a decade earlier,” IHS Markit said.

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Strong solar market demand comes despite an increase in production costs of up to 15percent that is driving a surge in module prices, especially in the first quarter, it said. However, production costs are set to drop in the second half of the year, and this will lay the groundwork for record solar installations at the end of 2021.

“We will see for the first time a situation in which global demand grows over 30percent despite high module prices in the first half of the year, which is unprecedented in the solar photovoltaic industry,” said Edurne Zoco, executive director, clean energy technology, at IHS Markit.