Clean Energy Investment Drops 2018

Despite the plunge in global demand for solar, the market is still strong in the US, overall investment remains stable, with wind and other solar energy technologies picking up the slack.

In this article, we give some statistics about the status of the global market. Overall, clean energy investment dropped just one percent and totaled $138.2 billion in the first half of 2018.

China, the globe’s No. 1 investor in clean energy, contributed to much of the drop in solar investment. The country’s solar funding fell 29 percent between the first half of 2017 and the first half of 2018. In June, the government announced it would not approve any more subsidized utility-scale PV projects in 2018.

The change, effective immediately, means projects connected past June 1 will not receive any feed-in tariffs from the government, constricting growth in a country that’s become the world's leader.

China’s Effect

GTM Research expects Chinese PV demand to drop this year to 28.8 gigawatts from a past projection of 48.2 gigawatts. Between 2018 and 2022, demand will fall to 141 gigawatts from the previous projection of 206 gigawatts.

It's a significant contrast to last year, in which BNEF notes China set a "spectacular" record by installing 53 gigawatts. The extreme shift in China also has analysts at BNEF suggesting that 2018 could be the year that global solar installations fall for the first time.

The full impact of the policy change, announced just one month ago, won’t be clear until later in the year. Looking ahead, GTM Research analysts expect there to be an upside to steadily falling module prices. After 2020 they’ll unlock additional global demand as solar edges closer to or achieves grid parity in some regions.

Renewable Growth

Meanwhile, spectacular investment growth in other sectors could outshine solar entirely. In the U.S., for instance, investment in wind grew 121 percent between the first half of 2017 and the first half of 2018. Investment in the U.S. wind sector is expected to increase further as developers scramble to meet the federal Production Tax Credit deadline.

In China, wind investment rose as well, although by a smaller 4 percent. Overall, wind investment in the two countries came out nearly equal: $17.5 billion in the U.S. and $17.6 billion in China. Investment in “energy smart technologies,” a category that encompasses products such as battery storage and electric vehicles, grew 64 percent.

The overall investment for solar energy globally is $138.2 billion. This comes from the first half of 2018. Below lists the country-level performances:

• China: $58.1 billion, down 15% compared to the first half of 2017
• U.S.: $28.8 billion, up 31%
• Europe: $16 billion, up 8%
• India: $7.4 billion, up 22%
• Australia: $4.1 billion, down 1%
• Morocco: $2.5 billion, up 12-fold
• Netherlands: $2.3 billion, up 209%
• Japan: $2.2 billion, down 67%
• Vietnam: $2 billion, up 136-fold
• Mexico: $1.9 billion, down 20%
• South Africa: $1.7 billion, up 35-fold
• Spain: $1.5 billion, up 652%
• Ukraine: $1.4 billion, up 12-fold
• Germany: $1.3 billion, down 77%
• France: $1.3 billion, down 13%
• Norway: $1.1 billion, up 231%
• Canada: $862 million, up 4%
• The U.K.: $664 million, down 51%
• Brazil: 597 million, down 81%

If you want to take the leap and see how joining the solar revolution can help you, please visit the HahaSmart Price Checker Tool yourself. You can see how much solar would cost in your area, and we can also help find local installers that can help you with every step. Enter your information and stop paying the utility your hard earned money. For information relating to going solar don’t forget to visit our solar blog section for more handy guides and articles.

HahaSmart Blog - More Solar Tips and Guide
HahaSmart News - Stay Informed
Your Solar Incentives - See Credits and Incentives in Your Area
Check Your Home's Solar Price - See How Much You Save
Register Now - Unlock The Lowest Solar Prices in Your Area