European Photovoltaic Industry Association (EPIA), 2011

Over the last 10 years, photovoltaic(PV) progress has been impressive. The total installed PV capacity in the world has multiplied by a factor of 27, from 1.5 GW in 2000 to 39.5 GW in 2010 - a yearly growth rate of 40%. That growth has proved to be sustainable, allowing the industry to develop at a stable rate.

Three main factors have driven the spectacular growth enjoyed by PV in recent years:

• Firstly, renewable energy is no longer considered a curiosity. PV has proven itself to be a reliable and safe energy source in all regions of the world.

• Secondly, the price decreases that have brought PV close to grid parity in several countries have encouraged new investors.

• And finally, smart policy makers in key countries have set adequate FiTs and other incentives that have helped develop markets, reduce prices and raise investors’ awareness of the technology.

The EU, having overtaken Japan, is now the clear leader in terms of market and total installed capacity - thanks largely to German initiatives that have in turn helped create global momentum. In the rest of the world, the leading countries continue to be those that started installing PV even before the EU. The market is expanding every year, with new countries joining progressively. In the so-called Sunbelt countries, decreasing prices are bringing PV closer to grid parity and helping spread awareness of its potential.

But what about the future of PV market development? With between 131 and 196 GW of PV systems likely to be installed in 2015, the forecasts are promising. But the financial crisis and competition with other energy sources have put pressure on policy makers to streamline the incentives for PV. PV is now a mature technology that is rapidly approaching grid parity. The time has come for reasonable support schemes in line with price evolution. In the coming months and years EPIA will support the adaptation of support schemes to prices. But until grid parity is reached, the PV industry is committed to ensuring the best possible use of support schemes.

The future of the PV market remains bright in the EU and the rest of the world. Uncertain times are causing governments everywhere to rethink the future of their energy mix, creating new opportunities for a competitive, safe and reliable electricity source such as PV.

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