Subsidy-free Solar and Moving OnwardsName : Mr. Milan Koev
Affliation : Chief Executive Officer
University : Hexagon Peak
Country : Singapore
Let’s look at the worlds biggest solar market. China’s domestic solar policy is unique in a sense that it is so powerful and able to define the directions of the industry dynamics all over the world. If not for another reason, it is purely because today probably over 90% of the solar panel manufacturing takes place in China itself.
So when China talks about subsidies for high efficiency panels, the whole industry shifts to mono PERC products. The scale is so significant that this transition moves with the speed of light.
The subsidies will indeed end - they have ended in other once world’s biggest markets in the past - say Germany for example. But this is the natural development of every new industry. Coal was (and unfortunately in some countries still is) driven and developed as an industry by heavy subsidies by governments. Nuclear as well. Now governments all over the world realise that the only way going forward is renewables. And solar is by far the fastest growing renewable energy source, with fastest adoption rate in new geographies, fastest reducing CAPEX. So when the subsidies do disappear completely, the industry will already be mature and strong enough to compete against all other energy sources. In fact in 2018 the most installed energy capacity is from solar and this is also the year of biggest FiT reductions, import tax duties and anti-dumping measures worldwide. It was quite messy year for everyone and yet 100 GWp of solar was installed.
The simple truth is - solar is already unstoppable. PPAs of 2 cents per kWh in the Middle East for example are unbeatable. If you look at the growth of the industry in the last 10 years and apply the same formula, in 12 years from now 100% of the global energy generation could be supplied by solar. Of course this can sound like a dream to many, but some 10 years ago when I got onboard of the “solar coaster”, it was a dream to have solar competing with conventional power. And today this is the reality.