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GSR 2015

60 02 MARKET AND INDUSTRY TRENDS Elsewhere in Asia, the largest market was South Korea (0.9 GW), followed by India (0.7 GW) and Thailand (0.5 GW).25 India’s market shrank relative to 2012 and 2013.26 Policy uncertainty has raised significant roadblocks, making it difficult to secure financing, as have delays associated with the national subsidy process.27 Bytheendof2014,Indiahad3.2GWinoperation,and the situation was looking brighter thanks to the announcement of new government support policies as well as financial commitments from international financial institutions.28 Most of the 15–16 GW installed outside of Asia was added in North America and the EU.29 North America added 6.7 GW in 2014.30 Canada accounted for about 0.5 GW, for a year-end total of 1.7 GW, with the rest brought on line in the United States.31 US installations were up 30% over 2013 to 6.2 GW, for a total of 18.3 GW.32 The market was driven by a continued decline in installed costs (particularly balance of systems), innovative financing, and stable policies.33 For the first time, each of the three major market segments (residential, commercial, and utility) installed more than 1 GW, although commercial sector demand declined slightly.34 The ramp-up in utility procurement (3.9 GW added) was driven by Renewable Portfolio Standard (RPS) requirements and by solar PV’s growing economic competitiveness in the broader electricity market (e.g., against natural gas).35 By early 2015, the solar PV pipeline exceeded 14 GW for utility projects expected to come on line before scheduled changes to a federal tax credit at end-2016.36 US residential demand (1.2 GW) grew by more than 50% for the third consecutive year, thanks to falling prices and to an increasing number of financing and ownership options.37 Several large employers launched a bulk corporate purchasing programme to reduce significantly the installation costs for their employees, and states also began implementing such programmes.38 California remained the leader for capacity additions (3.5 GW), followed distantly by North Carolina (0.4 GW). At year’s end, California also led the country for total capacity (8.7 GW), while Hawaii was the top state for per capita installations.39 The EU continued to lead the world in total regional operating capacity (87 GW) and in solar PV’s contribution to electricity supply.40 However, EU markets declined for the third year running, with an estimated 6.3 GW added, down from a peak of 22 GW in 2011.41 Demand was down in most EU markets due to reductions in policy support and to retroactive taxes in some countries, which have hurt investor confidence.42 Several countries, including France, Germany, Italy, and the United Kingdom, are moving to more market-based policy mechanisms such as premium payments, particularly for larger projects.43 (p See Policy Landscape section.) Italy and Spain saw precipitous declines in 2014, and Germany’s market shrank 43% relative to 2013.44 Former GW-sized markets—including Belgium, Bulgaria, Czech Republic, Greece, and Spain—installed little capacity in 2014.45 Exceptions to this trend included France, the Netherlands, Switzerland, and the United Kingdom.46 The United Kingdom and Germany were the EU’s top installers and ranked fourth and fifth, respectively, for global capacity additions in 2014. The United Kingdom installed 2.4 GW for a year-end total of 5.2 GW.47 More than 125,000 UK households put solar panels on their roofs in 2014, and the country was the EU’s only significant (remaining) market for large-scale ground-mounted projects.48 Germany added 1.9 GW, below the Renewable Energy Law (EEG) target of 2.5 GW, for a total of 38.2GW.49 Themarkeddeclinereportedlyresultedfromthefalling FIT payment for solar PV (down more than 70% since 2006) and concerns about the surcharge on self-consumption.50 Smaller rooftop systems (<10 kW) have not experienced the same rate of deceleration as larger ones because their self-consumption is not subject to EEG surcharges.51 Germany generated about 33 TWh with solar PV in 2014, and, at year’s end, it had the most solar PV capacity of any country by far.52 Australia ranked seventh globally for new capacity in 2014, adding 0.9 GW for a total surpassing 4.1 GW.53 About 14% of households have solar rooftop installations, with the highest proportion (24%) in South Australia, and more than 15,000 businesses have installed on-site solar systems.54 Policy uncertainty has led to suspension of some large projects, but at least two were under construction by early 2015 and were scheduled to go on line during the year.55 Latin America is the fastest growing regional market, although growth is uneven from country to country.56 Chile added 395 MW to its existing 12 MW, and accounted for the vast majority of the region’s installations.57 Much of Chile’s growth is in large- scale projects that supply the mining industry, as well as large merchant plants that rely on the spot market for revenue.58 Mexico also saw substantial growth (64 MW), and Brazil granted the first contracts for large-scale solar PV projects (totalling 1 GW from 31 solar parks) in late 2014.59 Challenges to future growth in the region range from grid access to securing financing.60 In developing and emerging economies, obtaining financing— and at affordable rates—is a common challenge, and deployment of solar PV is driven largely by decisions of large banks to support specific projects that they consider to pose relatively low risk.61 Even so, some new markets are starting to install measurable capacities of solar PV, both on- and off-grid. South Africa, for example, installed about 0.8 GW in 2014 to rank ninth globally for capacity added; most of this was in large parks and the result of South Africa’s tender programme.62 Kenya has focused on increasing off-grid solar in isolated areas, with large plants (several MW) also under development, and Rwanda commissioned a solar PV farm (8.5 MW) in 2014 that represents 7% of national installed power capacity.63 (pSee the Distributed Renewable Energy section for more on off-grid solar PV in developing countries.) Also in 2014, Egypt announced a procurement programme under its FIT for a total of 2.3 GW of solar PV.64 Markets also are picking up in the Middle East, where many countries have established targets for solar PV.65 (RSee Reference Table R15.) Israel led the region for 2014 installations

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