Solar technology firms are expected to record improved sales this year, as global sales of solar modules are estimated to increase about 20 percent, according to recent market data.
With improved market demands for solar panels, revenue for the solar photovoltaic module industry is forecast to hover at $38 billion in 2015, a 20 percent increase from a year earlier, according to market research firm HIS.
The industry’s collective profits are estimated to more than double to $5 billion this year, in line with an improved gross margin of 13 percent.
Demand for solar PV modules are forecast to reach 61 gigawatts, up by 27 percent from 48 gigawatts last year. One gigawatt of energy is roughly equal to the amount of electricity produced by an average nuclear reactor and can service around 150,000 people.
The improved outlook came as industry watchers anticipated a recovery in the global solar energy sector, which had been struggling from plunging oil prices and a worldwide economic slump that led many European states to cut back government subsidies for solar technology development.
“In 2015 we can expect a much healthier year for the supply chain after two very difficult years when incentives were pared back in several countries, over-supply continued and prices collapsed,” said Ash Sharma, senior research director for solar at IHS.
“This year, we expect a good combination of high demand in a vast number of countries, no collapsing end-markets and stabilizing prices,” Sharma said, adding that “far healthier and sustainable margins” are expected for much of the industry.
As market conditions are set to improve, Korean solar technology firms are expected to focus their efforts on securing new business deals and entering new markets.
Hanwha Q Cells, the solar panel unit of Hanwha Group, signed a 1 trillion won ($923.7 million) deal last month with U.S.-based company NextEra Energy to supply more than 1.5 gigawatts of solar modules by 2016, a record for a single deal in the industry.
Hanwha also recently expanded its presence in the solar energy sector by merging its two affiliates ― Hanwha SolarOne and Hanwha Q Cells ― under Hanwha Q Cells.
Meanwhile, Samsung SDI, a leading Korean battery and chemicals manufacturer, recently showcased the brand’s PV conductive paste ― material which acts as transistors inside solar panels ― at the a global PV power expo in China last month.
The company is also reportedly working to expand exports of its energy storage system ― technology that stores solar energy during the day for use at night ― to commercial markets in Europe, Japan and North America.
