Research from IHS finds that solar installations will grow in 2015, driving a 30% increase in demand.

Change in annual installations, 2015/2014 (GW). Source: IHSIHS forecasts that this increase in demand will raise solar photovoltaic (PV) module gross profits by up to $5 billion in 2015—double the profits earned in 2014.

“This year we expect a good combination of high demand in a vast number of countries, no collapsing end-markets and stabilizing prices,” says Ash Sharma, senior research director for solar at IHS. “This positive market environment will cause marked improvement for the supply chain.”

According to the PV Integrated Market Tracker, the surge in PV demand and a slowdown of average selling price will lead to greater profits throughout the supply chain. Gross margins for the wafer industry, especially, are expected to increase to 20% this year. Module industry margins are forecast to increase to 13%.

“This year’s improved PV market is not necessarily a return to the good times of 2009 to 2011, but it is certainly an industry turning point,” says Sharma. “In 2015 we can expect a much healthier year for the supply chain, after two very difficult years, when incentives were pared back in several countries, over-supply continued and prices collapsed.” Sharma says the outlook is for “far healthier and sustainable margins for much of the industry.”