The analysis found that greenhouse gas reduction, energy self-sufficiency and security are contributing to the industry’s growth.
Geographically, China, Japan, India and Australia will drive the Asia Pacific region, which will account for 46% annual installed solar photovoltaic (PV) capacity in 2014.
Germany, France Spain, Italy and the UK, collectively, plan to install over 75GW of solar PV capacity by 2020.
Frost & Sullivan said that the US has become a lucrative destination as the price of solar PV systems in the region has declined due to the reduction of imports from China following the imposition of anti-dumping and illegal subsidy tariffs on imports.
Frost & Sullivan energy & environmental industry analyst Pritil Gunjan said: "The global solar power market is benefitting from various incentive schemes in the form of tradable green energy certificates, FiTs, subsidies, and tax rebates for the use of renewable energy for power generation.
"However, these incentive schemes continue to be very heterogeneous, making solar PV penetration rates vary widely based on local and regional policies."
Gunjan noted that drafting strict clean energy regulations and providing adequate subsidies to the renewable energy sector will be essential.
"Equally important will be maintaining clarity in the incentive guidelines for solar power so that project developers, investors and customers are not misled and can make proper investment decisions."
Image: The Asia Pacific region will account for 46% annual installed solar PV capacity in 2014. Photo: Courtesy of graur codrin/FreeDigitalPhotos.net.
