Worldwide installations in 2014 will rise to 46 GW, which is 5 GW higher than had been predicted in October 2013, based on a quarterly review of PV installations in more than 100 countries conducted by the IHS PV Demand Tracker Service.

IHS has increased its forecast in light of recent policy changes in China and Japan.

The announcement by the Chinese National Development and Reform Commission (NDRC) that it would increase its target for ground-mount PV projects, as well as its total installation goal, was a key factor in driving up the forecast.

"IHS previously expressed its doubts about the Chinese government's capability to reach an ambitious target of 8 GW worth of rooftop solar projects in 2014," said Ash Sharma, senior director of solar research at IHS. "While IHS still predicts this goal will not be met, China's recent announcement that it will shift its focus to ground-mount projects and increase its installation target for this segment to 6 GW has led us to raise our forecast for 2014."

IHS predicts that China will install 4.8 GW of rooftop projects and 8 GW of ground-mount projects in 2014 - some 2 GW higher than the NRDC's target. Total installations in China will amount to 13 GW this year, compared to 10 GW in 2013.

Source: IHS Inc., April 2014

Europe's decline is anticipated to continue in 2014. China this year for the first time will install more PV capacity than the whole of Europe, based on the latest IHS forecast.

European PV installations in 2014 will fall to 9.7 GW, marking the third annual decline from the peak year of 2011, when the total amounted to 19 GW. IHS slashed its forecast for European installations in 2014 by nearly 700 MW due to reductions in Germany and also Ukraine - the latter as a result of the political uncertainty in Crimea.

"Despite the continued reduction of government support