Ernst & Young ranks India, China, US as world’s most attractive solar markets

London-based EY has once again ranked India as the most attractive destination for PV investment in its latest Renewable Energy Country Attractiveness Index. The country received a score of 62.9, followed by China and the United States, with scores of 61.1 and 58.5, respectively.

Australia, Israel, Germany, Egypt, France, Brazil and Morocco completed EY’s top 10. For overall renewables investment, the United States ranked first, followed by China, and then Germany, which moved up one spot from last year.

“The US retains its top position due to the Inflation Reduction Act passed in August 2022, which is viewed as a game changer for its green hydrogen industry,” the report says.

China is expected to add 100 GW of solar this year, according to the China Renewable Energy Engineering Institute. Germany’s rise to third place was reportedly bolstered by its Easter package commitment to renewables. The United Kingdom lost its spot in the top three, taking fourth place. France, Australia, India, Spain, Japan and the Netherlands rounded out the top 10.

The report also ranks markets in terms of the attractiveness of renewable power procurement via offsite corporate PPAs.

“The volume of power generation committed through PPAs in 2022 is set to be less than 2021, although higher than 2020,” the report says, noting that this will be the first year-on-year reduction in signed corporate PPAs since 2013.

Key factors in the reduction include uncertainty around government policy and rapidly changing cost profiles, according to EY. Spain remained the most attractive PPA market in 2022, with Germany overtaking the United States for second place. The United Kingdom, Australia and France completed the top five.

EY also introduced a new renewables attractiveness ranking, normalized to countries’ gross domestic product. It highlighted Morocco, Chile and Portugal as markets performing above expectations for their economic size.