Global revenues from solar energy operations could double from $59.84-billion in 2013 to $137-billion in 2020, new analysis from Frost & Sullivan shows.

The consultancy’s ‘Global Solar Power Market’ report says the total global installed solar photovoltaic (PV) capacity stood at 137 GW last year, with growth driven by supportive environmental and energy policies and incentives.

Solar volumes are currently concentrated in the Asia-Pacific region, which accounted for about 46% of yearly installed solar PV capacity in 2014.

“China, Japan, India and Australia will continue to be the top four countries driving regional demand. With panel prices coming down drastically, Asian manufacturers are now looking at value-chain integration and technical efficiencies to differentiate their products from other suppliers in the market.”

However, the European market also continues to grow, supported by incentives and, by 2020, Germany, France, Spain, Italy, and the UK collectively plan to install more than 75 GW of solar PV capacity.

Frost & Sullivan’s industrial analyst for energy and environment Gareth Blanckenberg says Africa, which is endowed with abundant and readily usable solar, has benefitted from a rapid fall in solar PV costs.

“The levellised cost of energy is now competitive with many other conventional generation technologies, especially for distributed, off-grid and hybrid solutions,” he adds.

But the potential of solar PV is being reined in by the high installation and maintenance costs, while suppliers are facing increasing competitive pressures from other renewables technologies.

In addition, report says a strong reliance on government support has impeded market development, especially where there has been a withdrawal of subsidies or incentives.

Policy decisions will continue to drive the market and energy and environmental industry analyst Pritil Gunjan says drafting “strict clean-energy regulations and offering 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.”