New PV installations will increase at 53.4 percent to 351GW for 2023, TrendForce said in latest research report.
Asia Pacific region has the largest amount of PV installation demand in 2023. New PV installations in the Asia-Pacific region are projected to reach 202.5GW for 2023, reflecting a growth rate of 55.4 percent. Countries such as China, Malaysia, and the Philippines are projected to post growth rate of more than 40 percent. Japan, Australia, and South Korea will be seeing a more stable level of installation demand in 2023.
In Europe, new PV installations are projected to increase by 39.7 percent to around 68.6GW for 2023. Germany, Spain, and the Netherlands are the main demand contributors. Governments of many European countries have provided subsidies and tax credits to promote the deployment of PV systems. These incentives, together with falling prices for PV modules, will be driving installation growth across the region this year, especially in relation to residential PV projects.
The EU has loosened the regulations concerning permits and applications for setting up PV projects. The lowering of the regulatory barriers will synergize with the decline in module prices, thereby encouraging the development of large-scale projects. Demand for the construction of ground-mounted PV power stations in Europe will return to positive growth during the 2023~2024 period.
In Americas, new PV installations are projected to total around 64.6GW for 2023, translating to a growth rate of 65.2 percent. In the Americas, PV demand has been highly concentrated in a few countries such as the US, Brazil, and Chile. However, Colombia and Canada will witness a surge in grid connections of new PV projects this year.
In the US market, there was a slowdown in new PV installations related to ground-mounted PV power stations since this kind of project is highly sensitive to cost fluctuations. The US market will exhibit strong growth in 2023 because the Inflation Reduction Act has helped increase the number of projects in the pipeline. There is a possibility of a doubling of the installation demand from the US in 2023.
In Brazil, the government promotes distributed PV projects including rooftop PV projects for residential, commercial, and industrial settings.
The Middle East and Africa together will add 14.9GW of new PV installations in 2023, thereby posting a growth rate of around 49.5 percent. The PV installation growth of Mideast and African countries is highly dependent on renewable energy tenders, and projects involving large ground-mounted PV power stations account for much of the demand from these markets.
The major growth contributors in the two regions are the UAE, Saudi Arabia, South Africa, and Israel. Presently, tendered projects that are either to be built or being built in the two regions come to a total of more than 9GW.