As an avid supporter and expert in everything solar, I’m here to share some significant and recent advancements in the solar industry. According to Bloomberg’s 3Q 2024 global market outlook, there’s good news as solar is lighting the way particularly brightly this year, with an expected installation capacity of a whopping 592 Gigawatts (GW). This marks a sharp 33% increase in comparison to the absolutely stellar year we had in 2023.
An interesting development has been the notably low prices for solar modules. While this is sparking curiosity and promotes the adoption of solar panels for your home in untapped markets, it’s also proving to be a difficult period for solar companies. These companies face an intense competition to keep their market share intact amidst such low prices.
As of this year, the world operates with a significant 1.2 Terawatts (TW) of solar manufacturing capacity. To put that into perspective, this signifies enough capacity to produce over 900 GW of modules just from the expected polysilicon production in 2024 alone.
While the solar industry’s growth is positively seismic, with projections held mainly due to contributions from emerging markets such as India and Pakistan, established solar markets continue their steady development. Of course, this isn’t to say that the entire view is bathed in sunlight. Installations have been slower than anticipated in areas like Japan and South Africa.
One particular point worth noting is the highly tempting decline in polysilicon prices. At $4.70 per kilogram, the prices are currently lower than the production cost for almost all manufacturers. This cost imbalance has led to the shutting down of factories for maintenance, and a revised estimate of 1.96 million metric tons for 2024 polysilicon production. Yet, this is still enough to generate 900 GW of solar modules.
Moreover, module prices too have seen a historic low at $0.096 per Watt. Consequently, many solar companies will likely report losses this year. There’s an indication that some of these companies may not make it through this cycle, a consideration made even more critical by the weaker performance of convertible bonds.
Nevertheless, this is a transformative time within the solar company sphere. While there are trials these businesses must face, the reduction in price is paving the way for more and more homes to invest in a personal solar array for home use. It is all about creating a sustainable and clean future, one solar panel at a time. Previous company trials have shown that while challenging, certain battles will ultimately lead to innovation and the surge in new opportunities. Let’s ride this surge of solar power together to a brighter and greener future! Stay tuned for more insightful updates from the ever-dynamic world of solar technology.
Original Articlehttps://pv-magazine-usa.com/2024/09/03/global-solar-manufacturing-reaches-1-2-tw-said-bloomberg-nef/
