Soaring Demand from Residential, Commercial, and Industrial Sectors Uplifts Prospect of Solar Energy System Market
The increase in environmental pollutants, and rising provision of government incentives and tax refunds to install solar panels are driving the solar industry over the recent past. Solar energy systems are in higher demand in the power generation sectors due to the decrease in the water footprint associated with them. The boom in rooftop installations has fuelled demand for solar cells, which has led to an expansion in applications in the architectural sector. The demand for parabolic troughs and solar power towers in the electricity generation industry will likely increase the need for concentrated solar power systems, largely pushing the growth of global solar energy system market. Government regulations that encourage renewable energy installation are critical. FiT, investment tax credits, and capital subsidies are significant policies promoting solar installation in several countries, including the United States, China, and the European Union.
Important PV projects under construction or in the planning stages, as well as many government support programs, are likely to boost the cumulative installed capacity of solar energy during the forecast period. The United States had 121.4 GW of installed photovoltaic and concentrated solar power capacity as of the end of 2021, and the government of the US plan to extend its solar capacity to 550 GW by 2030. The continuous initiative of the American government to enhance solar energy production will propel the growth of solar energy system market. One of the key factors driving the adoption of solar PV systems in the commercial, industrial, and residential sectors is growing public knowledge about using low carbon-intensive technologies to reduce the carbon footprint.
The allowance of various governments to the consumer to supply the national power grid with private solar energy, added tax benefits, installation allowance, and so on will increase the demand for solar panel installation among the users. Various governments of the developing nations are growing residential’s user participation in the power grid due to increased energy demand. The government of India is allowing 30% of the installation cost as a subside of the installation of solar panels and an INR 2 incentive for each unit generation. Such favourable policies by the government of various countries will drive the expansion of solar projects, thereby shaping solar energy system market.
Attractive Installation Costs Account for Dominance of Solar Photovoltaic Technology in Solar Energy System Market
In the forecast period, solar photovoltaic accounts for the most significant renewable capacity additions, well-outpacing wind, and hydro. Continuous cost reductions in technology, as well as increasing growth in China, India, and other Asian and European economies, are expected to contribute to the development of the solar PV market during the forecast period, owing to policy changes and a growing focus on achieving various capacity targets. Through economies of scale, the solar PV business has reduced costs considerably over the last six years. As the market became swamped with equipment, prices fell precipitously, and the cost of solar panels fell dramatically, leading to increased use of solar PV systems. As a result of the factors above, the solar photovoltaic category is expected to dominate the solar energy market throughout the forecast period.
Primacy of Asia Pacific Intact on the Back of Prime Markets Across China, and India
In the forecast period, Asia Pacific will remain the dominant solar energy system market. With an extra installed capacity of approximately 75.7 GW by 2021, the area held a market share of around 57.2 percent of global solar power installed capacity. High electricity demand, improving living conditions, and adequate solar irradiation are primary factors driving regional market expansion. The expanding installation of solar power plants in China, and India is driving up demand for solar PV panels in the Asia Pacific. These countries are major global solar panel markets in the Asia Pacific. By 2030, the Chinese government wants a solar power generation capacity of 1,200GW, up from 300GW today. The country's need for solar power plants will rise due to the significant advancement in solar energy. This will drive the growth of solar energy system market across the region.
In the forecast period, Europe will be the second-largest market for solar energy systems. In 2020, the European Union (EU) countries installed around 18.2 GW solar PV plants. Supportive legislation, renewable energy targets, and an increasing number of solar farms are driving industry expansion. According to 2020 estimates, the UK presently has 500 solar farms in operation. As more efficient solar cells have come to market, power output from industrial sector solar cells has increased in Europe over the years. The increased market rivalry has contributed to lower electricity production costs and an increase in the diversity of solar panels. These factors are projected to boost demand for solar PV panels in the region during the projection period.
Global Solar Energy System Market: Competitive Landscape
Market participants present new products and develop collaborations, alliances, and partnership agreements. In May 2022, NJR Clean Energy Ventures (CEV) began work on an 8.9-MW floating solar array at Millburn, New Jersey, which will be the enormous floating array in the United States. The project employs a floating racking system, and 16,510 solar panels are expected to be put on a reservoir at the American Water Canoe Brook Water Treatment Plant in New Jersey. In December 2021, The Solar Energy Corporation of India awarded Tata Power the most significant solar plus battery project in India. A 100 MW EPC solar project and a 120 MWh utility-scale Battery Energy Storage System are included in the deal. The overall project cost was approximately INR 945 crore.
A few of the players in the solar energy system market include Abengoa SE, Acciona S.A., Canadian Solar, Inc., Esolar, Inc., United Renewable Energy Co. Ltd., Kaneka Corporation, Sunpower Corporation, Wuxi Suntech Power Co., Ltd., Tata Power Solar Systems Ltd., and Brightsource Energy, Inc.
Global Solar Energy System Market is Segmented as Below:
By Solar Module
By End Use
Key Elements Included In The Study: Global Solar Energy System Market
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