Rise of the UK solar PV market in 2014

Industry analyst firm NPD Solarbuzz says the UK’s rise is due to developers rushing to complete large-scale projects ahead of reductions in the Renewable Obligation Certificate (ROC).

The residential segment is also rebounding, with installers now adjusting to predicable Feed-in Tariff (FIT) rates.

Together, the UK and Germany will lead the European market for PV and are forecast to account of half of European demand next year. Italy and France are also predicted to drive the recovery of the PV market. These four countries will account for almost 8GW in 2014, which is equivalent to more than 75% of the solar PV capacity that will be installed in Europe next year.

Euorpe dominated global PV demand between 2006 and 2011 at levels between 70% and 80%, however Europe’s role within the industry will decline to between 25% and 30% from 2014 onwards.

The European downturn was primarily caused by dramatic declines in solar PV demand in Germany and Italy, which was compounded by uncertainty introduced by the solar trade dispute between Europe and China. 

The declines in 2014 from Germany, Greece, Romania, Belgium, and Switzerland will be compensated by growth from the UK and France, assisted by the recovery of Denmark and other smaller markets, and by contributions from Turkey and other emerging markets.

European solar PV demand in 2014 will continue to be supported by Ukraine and other smaller, but more stable, markets.

“Following consecutive quarterly market declines going back to the start of 2012, solar PV demand from Europe is forecast to stabilize over the next three quarters,” says to Susanne von Aichberger, analyst at NPD Solarbuzz. “The downturn in the European solar PV industry has now bottomed out, with the quarterly demand volatility of the past soon to be replaced by more stable end-market dynamics.”