Overall demand “will not swing wildly and will instead be continuously sustained by large PV (photovoltaic) power plans and commercial PV systems,” Patrick Lin, a TrendForce analyst, said in a note.

Prior to the credit extension, IHS analyst Ash Sharma projected a 10% decline in solar demand for 2017 after the credit expiration. Now, S&P Capital analyst Angelo Zino expects global installations to grow by 8% in 2016. However, Zino anticipates growth to slow from breakneck speeds in prior years as the industry matures.

“From a demand perspective, we do expect growth to decelerate in 2016, given the fact the industry is starting to mature here in the U.S.,” Zino told IBD.

Guggenheim Solar ETF

Max Chen contributed to this article.