Future of Solar – Prediction for 2021

Looking Back on Australian Solar Industry in 2020

2020 was an unpredictable year for solar businesses. As the pandemic ravaged our communities and first quarter of the year saw businesses shutting its doors.  State borders closed and  people isolated. All whilst solar industry showed a great amount of resilience. According to an analysis conducted by consultancy SunWiz, Solar PV industry flourished. It did it by overcoming disruptions and ending the 2020 with the record 39 per cent year-on-year growth.  There were almost 3,000MW of new installations throughout 2020. These  installation rates increased as the year progressed. According their statistics, 2020 has set a record.  This was because more PV was installed so far this year than in the first 9 months of any previous year.

Future of Solar – What is in store for the Solar Industry in 2021?

2021 Solar Power Industry Forecast by PV Connections is predicting a moderate growth for this industry sector based on the number of factors that we will list below:

Solar Industry Adaptation and Innovation

Disruption causes innovation and many businesses around the globe were forced to transform digitally and to innovate. The compliance and implementation of stricter safety protocols due to social distancing as well as the improvement in the implementation of digital tools has made huge difference in the way businesses are conducted with the emphasis on trying to achieve cost reduction while maintaining quality output. Many scheduled physical conferences and events have also gone ahead virtually cutting costs of travelling amongst other costs. Business processes streamlined and this had huge carry over effect for proactive businesses who were the early adopters of new technology, by centralising operations in all areas of work.

The change in Work/Life Balance and the Lifestyle

The way we work has changed significantly.  A Gartner HR survey revealed 88 per cent of organisations have encouraged or required employees to work from home due to coronavirus. This number is set to decrease over time as the world learns to live and adapt to the new Covid reality. However, significant number of employed individuals will remain their work from home.  Moreover, this directly impacted the way these individuals will think about their energy expenditure and sustainability. The Future of Solar  – They will be saving time and money due to having no travelling expenses. Additionally, they will be able to reinvest their resources upfront towards solar installation. They will do so by considering the increase in the energy expenditure over time and potential long-term savings.

Solar Power is becoming more affordable

According to the Energy Security Board retail electricity prices are tipped to fall by 7.1% by 2022 – an average saving of $97 per household. Despite this, more households are adopting solar as the low costs of renewable energy are predicted to dip even lower. Furthermore, according to ESB  the share of these renewables is forecast to increase to 27% in 2022 and 40% in 2030. Therefore, this will drive the wholesale cost of electricity even lower. However, with the predicted long-term savings on power bills, 53 % of Australian consumers both residential and commercial are getting wiser.  This is to say that Australia taking the top 10 position globally when it comes to solar uptake. Led by Tasmania, which uses almost 100% renewables, and South Australia, with 53%.

Sustainability Goals Become More Ambitious

Businesses across Australia and globally are embracing more sustainable and environmentally friendly practices. Consequently as a result of the economic recession from the impact of the pandemic and mitigation of the risks imposed by climate change.  The businesses that are striving towards being sustainable can save the costs. They can also appear more competitive by projecting the corporate social responsibility efforts.  These efforts can lead to the economic rejuvenation that will lead us out of the recession. The head of the Clean Energy Council (CEC), Kane Thornton, has made his position clear. He believes that renewable energy can be the driving force for Australia’s post-COVID-19 economic rebuild. Therefore, it should be considered an essential service. Not only will the continued installation of both large-scale renewable projects and residential solar systems help smash our environmental targets and create thousands of jobs.  They will provide Australians with much needed relief on power bills. While we will never be certain of what the future holds, the PV Connections team has worked closely with various solar businesses. We have been honoured to witness their resilience, growth and the adaptation. All during one of the most challenging years any one of us has experienced in this century. Therefore, we can with reassurance and anticipation know that the current year will be better than the last. We’d like to take this opportunity to thank you for your support and we look forward to partnering with you long into the future! Your team at PV Connections