IHS Markit: China’s solar PV market weakens in Q1, 2017 on confirmation of grace period, but 100% growth predicted for Q2
After a long wait, the details of China’s new FiT for 2017 were finally confirmed in late December 2016, and were largely in line with expectations.
With the 6 month grace period for the 2016 FiT now confirmed, some pressure has been taken off projects to quickly complete, weakening the outlook for the first quarter slightly, IHS Markit (London, UK) reports.
According to the January 2017 IHS China PV Market Trend Survey, the growth expectation for Q1, 2017 – which typically shows a slowdown due cold weather in the biggest regions for solar PV development and the national Spring Festival holiday – has decreased by 21 percentage points and survey participants now predict a 40% decline on average.
Survey contributors expect an average 16% PV market growth for 2017
However, as a result of the confirmed grace period, survey participants indicated expectations for very strong growth in Q2, 2017. Survey responses now show growth of over 100% Q-o-Q in Q2, 2017, as PV projects rush to complete before the grace period expires.
Contributors to the IHS survey continue to be bullish on the outlook for 2017 as a whole, and all indicated that they expect growth for their business this year. On average, the results indicate 16% Y-o-Y growth for 2017.