Solar power will be the fastest growing renewable energy source in 2017, accounting for 37.5% of global investment.
That’s according to a new report from consultancy Frost & Sullivan, which forecasts spending on the technology will rise by 11.5% to hit $141.6 billion (£109.8bn).
The firm believes increased decentralisation, the decarbonisation of electricity and digitisation to boost operational efficiency are driving opportunities in the sector.
It says continued regulatory support for renewable energy will see global power investment reach $443.5 billion (£343.9bn) this year as the market transitions to more decentralised and intelligent energy systems.
The report adds international agreements such as COP21, combined with the falling costs of renewables, will ensure more capacity per dollar will be invested.
China is expected to be the largest market in terms of revenue investment but Frost and Sullivan believes the fastest growth will come from India, which could see double-digit growth in investment.
Energy & Environment Principal Consultant Jonathan Robinson said: “As new geographies emerge, local legislation and pro-renewable incentives will impact the fuel mix, compelling industry participants to identify challenges and define localisation strategies for long term growth.
“As the renewable and distributed energy markets mature, a large installed capacity of equipment that needs servicing will also offer the operation and maintenance sector attractive growth prospects.”
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