How is Covid-19 impacting the global solar sector?

Webinar – 23 April 2020 How is Covid-19 impacting the global solar sector? Global Solar Council The voice of the world’s solar energy industry, we are a non-profit body based in Washington D.C. representing national, regional and international associations as well as leading solar sector corporations. Founded at the 2015 Paris climate conference as a private-sector response to the climate emergency, we bring together associations from both established and emerging markets that represent companies all along the solar supply chain. 2 Our vision - Solar energy is the leading solution to the world’s energy needs Our mission - To promote the rapid adoption of solar energy globally, through market development, partnerships and education. About us Partnerships Our activities • Developing actionable policy recommendations for intergovernmental organizations • Opening new markets and growing existing markets • Building partnerships with key intergovernmental organizations and international institutions • Expanding local capacity • Promoting standards, best practices, quality initiatives and sustainability 3 In recognition of solar PV’s immense potential for job creation, the GSC has set a target of 10 million solar jobs by 2030, which will result in trillions of dollars in long-term, stable investments and multiple terawatts of PV generation. Our activities How is the COVID-19 pandemic impacting the PV industry? • A global survey to track the effects of the pandemic and how governments institutions can respond to the emergecy and support the PV sector 4 • Responses received in April 2020 from hundreds of solar businesses in 62 different countries: PV plant designers, developers installers, EPC/general contractors, component materials producers distributors… 5 Impact on orders Yes 71,2% No 28,8% In terms of sales to the solar PV market, have you experienced a decline in orders as a result of the health emergency since the beginning of the crisis in your country ? Of which… 6 in 10 have seen orders fall by up to half 3 in 10 have seen orders fall by between 50% and 90% 1 in 10 have seen orders virtually wiped out (90%) 6 Outlook for orders Yes 79,5% No 20,5% Do you expect a decline in orders over the next 4 months? Of which… Half expect orders to fall by up to 40% Half expect orders to fall by more than 40% 7 Outlook for prices Of which… Yes 37,3% No 62,7% As a result of government decisions in response to the health emergency, have you experienced an increase in the price of supplies since the beginning of the crisis? 5 in 10 have seen price inflation of up to 10% 3 in 10 have seen price inflation of 10%-15% 2 in 10 have seen price inflation of over 15% Outlook: Just over half of all respondents (54%) expect prices to rise in the next 4 months with modest increases (less than 10%) predicted by most 8 Impact on supplies Yes 74,9% No 25,1% Have you experienced difficulties in supplying goods and services compared to the period before the start of the COVID-19 crisis and government decisions related to the health emergency? Yes 71,4% No 28,6% Do you expect difficulties in supplying goods and services in the coming 4 months? 9 Impact on operations What are the main operational difficulties are you experiencing in the daily activities of your company? ISSUES WITH ORDERS/CLIENT DEMAND/CONTRACTS (35%) “Clients are being more cautious” “Uncertainty of future regulations for installations” “Rooftop not considered essential service” “Difficulty in getting new contracts” “Clients are not in a period of decision-making” “Difficulty is assigning contracts and works” RESTRICTIONS ON WORK/ACCESS TO SITES (57%) “Mobility for activities that require a site visit” “Lack of staff and restrictions on travel and accommodation” “Limited human resources” SUPPLY CHAIN/LOGISTICAL ISSUES (18%) “Supply of stock” “No materials” “Logistics” “Lock down” “Shortages of fuel, curfews and lack of transportation” None (4%) 10 (Increased) tax credits for companies 38% (Increased) tax relief for solar PV installations 48% Non-refundable loans or aid 37% Dedicated state financing 42% Other 20% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% What support initiatives and/or tax relief mechanisms should be provided by government/institutions to help you mitigate the effects of the COVID-19 pandemic? Support mechanisms Actions to reduce bureaucracy (digitalisation), cut administrative burdens and ease financial regulations Stimulus measures to boost demand for solar/green investments post-Covid Preferential treatment for solar in power markets www.globalsolarcouncil.org 11 Get in touch Global Solar Council Thank you @GSolarCouncil Global Solar Council