I. Global Market Overview: A Year of Breakthrough Growth

The solar PV market entered a “new dimension of growth” in 2022. According to the “Global Solar Market Outlook 2023-27” released by SolarPower Europe, global newly added solar capacity reached 239 GW in 2022, accounting for two-thirds of all new renewable energy capacity. IHS Markit data shows global demand reached a median level of 262 GW in 2022, with annual installed capacity growth nearing 50%. BloombergNEF (BNEF) had previously forecast global PV additions of 228 GW (dc) for 2022, but actual figures significantly exceeded expectations.

From a market structure perspective, global rooftop PV installations accounted for 49.5% of new capacity in 2022, reaching 118 GW; utility-scale projects grew by 41% to 121 GW. The top five countries by installation demand were China, the United States, India, Brazil, and Australia, together accounting for about 60% of global demand. The number of GW‑level PV markets reached 26 globally, representing 88.6% of global installed capacity.

II. Key Policy Drivers: Reshaping the Industry Landscape

In 2022, several major energy policies were introduced worldwide, laying a solid foundation for the long-term development of commercial solar projects.

The U.S. Inflation Reduction Act (IRA) was the most watched energy policy event of 2022. On August 16, 2022, U.S. President Joe Biden formally signed the Act, which plans to invest $369 billion over ten years in energy security and climate change – described by the White House as “the most aggressive action ever taken by the United States to confront the climate crisis.” The IRA extends the Investment Tax Credit (ITC) and Production Tax Credit (PTC) through 2032, with a 30% tax credit available for both commercial and residential projects. S&P Global analysis noted that the IRA significantly improves project economics across all PV segments and substantially raised installation forecasts. SEIA stated that the IRA’s tax credit policies could stimulate over 30 GW of new solar module manufacturing capacity in the U.S.

The EU REPowerEU Plan was officially announced on May 18, 2022, involving up to €210 billion in funding over the next five years. The plan aims to reach 320 GW of cumulative EU solar PV capacity by 2025 – nearly doubling 2021 levels – and 600 GW by 2030. The European Commission stated that renewable energy is the cheapest and cleanest energy source, and accelerating its deployment is a main pillar of REPowerEU.

China’s policy package also provided strong support for commercial solar projects. The National Development and Reform Commission and the National Energy Administration issued a plan for high-quality development of new energy, setting a target of over 1,200 GW of combined wind and solar power capacity by 2030. Multiple policies – including county-wide rooftop PV pilots, large desert solar bases, and grid-connection guarantees – worked in concert.

III. Key Regional Markets and Benchmark Projects

China: Explosive Growth in Distributed PV

In 2022, China added about 87 GW of new solar capacity, a sharp increase of 58.53% over 2021, hitting a record high. Distributed PV was particularly outstanding – in the first three quarters of 2022, new grid-connected PV capacity reached 52.6 GW, of which distributed PV accounted for 35.33 GW (over 67%). Commercial & industrial (C&I) distributed PV was the fastest‑growing segment, adding 18.74 GW from January to September 2022, a year‑on‑year increase of 296%, representing 53% of all distributed PV.

Benchmark projects included the SPIC 400 MW Guyuan “PV + demonstration” project, the Zhejiang Xiangshan 300 MW tidal flat PV project, and the Xinjiang Bachu County 250 MW PV power station, all of which were connected to the grid. The first PV power station built within a coal‑fired power plant site entered commercial operation in Taizhou, Jiangsu, providing a model for green transformation of thermal power enterprises. At the end of 2022, SPIC connected 28 wind‑solar‑storage projects, covering C&I distributed and fishery‑complementary PV.

United States: From Supply Disruption to Demand Release

In the first half of 2022, the U.S. PV market was significantly affected by module supply issues. EIA data showed only 4.2 GW of PV installed in the first half, with about 20% of utility‑scale solar projects delayed. However, after the IRA passed in August, market expectations were strongly boosted. Industry organizations project that solar deployment could accelerate from 10 GW per year in 2020 to 50 GW per year by 2024. The U.S. PV market has a utility‑scale project pipeline of over 200 GW, providing ample momentum for continued growth.

Europe: Demand Surge Driven by Energy Independence

Following the Russia‑Ukraine conflict, European electricity prices hit record highs, sharply boosting PV demand. In the first quarter of 2022, the EU imported 16.7 GW of modules from China, up 145% year‑on‑year. Germany, the Netherlands, Spain, and France remained the largest demand countries, while Italy, Portugal, Greece, and the UK saw rapid growth. Shenwan Hongyuan analysis noted that the solar rooftop initiative under REPowerEU requires solar panels on new public, commercial, and residential buildings, further driving the distributed PV market.

India: Dominated by Utility‑Scale Projects

India’s solar PV installed capacity reached approximately 62.8 GW in 2022, a year‑on‑year increase of about 31%. Utility‑scale PV plants accounted for 87% of total solar PV installations, with over 11 GW added. Rooftop solar added 1.6 GW, of which about 42% came from the industrial sector.

Brazil: A Solar Hotspot in Latin America

Brazil became a hotspot for global solar investment in 2022. One of Latin America’s largest solar projects – the “Sol do Cerrado” solar park – officially began operations, with an installed capacity of 766 MW, equivalent to the annual electricity consumption of a city of 800,000 residents. The project uses PV modules and parts supplied by JinkoSolar, exemplifying close cooperation between Chinese companies and Brazil in clean energy. CPID and CSI Solar completed the acquisition and handover of the Marangatu and Panati PV projects in Brazil, with a combined capacity of about 738 MW, scheduled to start construction in the third quarter of 2022.

International Flagship Projects

In Dubai, the second phase (300 MW) of the 900 MW Phase V solar project built by China Energy Engineering Corporation was put into commercial operation 16 days ahead of schedule. Located in the Mohammed bin Rashid Al Maktoum Solar Park, the project uses advanced solar tracking technology and will supply about 2.268 billion kWh of electricity annually, saving 907,200 tons of coal per year.

IV. Industry Chain and Corporate Performance

In 2022, companies across the PV industry chain generally achieved strong performance growth. Among the nearly 90 PV‑related companies listed on A‑shares, more than 70% announced positive preliminary results or turned losses into profits. Four leading companies – LONGi Green Energy, Daqo New Energy, TBEA, and Tongwei – reported net profits exceeding RMB 10 billion. Twenty‑eight companies including Jinlang Technology and JA Solar reported net profit growth of more than 100% on the upper end.

LONGi Green Energy reported H1 2022 revenue of RMB 50.417 billion, up 43.64% year‑on‑year, with net profit of RMB 6.48 billion, up 29.79%, and announced over RMB 13 billion in new project investments. Trina Solar achieved full‑year 2022 operating revenue of RMB 85.248 billion, up 91.65% year‑on‑year. Canadian Solar Inc. shipped 21.1 GW of modules in 2022, up 45% year‑on‑year, with a global solar project pipeline of about 25 GW.

JinkoSolar completed its IPO in January 2022, raising RMB 10 billion for high‑efficiency cell and module capacity expansion. Industry statistics show that the combined 2022 annual reports of 77 listed PV companies exceeded RMB 1.26 trillion in total revenue.