The global solar power market is growing rapidly. This expansion of the market is attributed to several key factors, including supportive government policies aimed at achieving emission reduction targets and enhancing energy security, surge in investments in the global solar energy market, decreasing solar panel costs, and increasing competitiveness of solar relative to the conventional fossil fuels-based energy.
However, the expansion of the global solar photovoltaic market faces persistent hurdles. Issues such as low workforce availability, grid integration limitations, and continued support for the fossil fuel sector in the form of subsidies impede the deployment of large-scale solar PV capacity.
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Concentrated solar power (CSP), another solar energy form, is experiencing a slower growth rate compared to solar PV. The worldwide installed capacity of concentrating solar thermal power (CSP) increased by 200 MW in 2022, reaching a total of 6.3 GW. This growth follows the first-ever contraction of global CSP capacity in 2021.
Overall, the global concentrated solar power systems market has decelerated after an initial surge of development in Spain and the United States in the early 2010s. Neither of these historically leading markets has added capacity in nearly a decade. However, new projects are coming online and are under construction in emerging markets, including Chile, China, Israel, Morocco, South Africa, and the United Arab Emirates.
Drivers
Strong Policy Support
Policy support continues to play a pivotal role in driving solar PV deployment across most of the world. The growth in capacity is due to a variety of policy mechanisms, including auctions, feed-in tariffs, net-metering, and contracts for difference.
Some of the major policies driving solar PV growth implemented in different parts of the world in recent times are:
In August 2022, the United States federal government introduced the Investment in Renewable Energy Act (IRA), a substantial initiative designed to greatly enhance support for renewable energy over the coming decade. This is to be achieved through the implementation of tax credits and various other measures.
In June 2022, China unveiled its 14th Five-Year Plan for Renewable Energy, outlining a notably ambitious goal of sourcing 33% of its electricity generation from renewables by 2025. This target represents a substantial increase from the approximately 29% achieved in 2021 and encompasses an 18% target specifically for wind and solar technologies.
Segment Analysis
In 2022, utility-scale solar PV plants accounted for approximately 50% of the global solar PV capacity additions. This was followed by distributed capacity, with the commercial and industrial segments contributing 25% and residential rooftop solar installations making up 23% of the total capacity additions.
During the period of elevated fuel and electricity costs in 2021-2022, distributed solar PV systems gained traction as an appealing alternative for many consumers, driving increased investment in this sector. While utility-scale systems remain the most cost-effective source of electricity generation in numerous regions globally, the task of constructing large-scale installations is becoming increasingly complex in many countries. This complexity arises from the scarcity of suitable sites and intricate permitting procedures, thereby favoring the adoption of small-scale rooftop PV systems.
Regional Analysis
The Asia-Pacific solar market continues to dominate the global solar market with record capacity additions, primarily due to the surging PV installations in China, India, and Japan. China, in particular, retains its dominant role in solar PV capacity expansion, with a remarkable addition of 100 GW in 2022, marking a nearly 60% increase compared to the previous year. The unveiling of the 14th Five-Year Plan for Renewable Energy in 2022, featuring ambitious deployment targets, paves the way for sustained capacity growth in the foreseeable future.
In June 2023, China successfully reached a significant milestone by surpassing its 50% renewable energy target ahead of schedule. With 51% of its energy now coming from renewable sources, China has achieved its 2025 target two years in advance, driven largely by the substantial growth in its solar power installations.
Emerging Trends
Certain countries are gradually reducing their support mechanisms for end users, such as tenders, feed-in tariffs, direct subsidies, and fiscal incentives, due to the increasing competitiveness of photovoltaic (PV) technology. On the other hand, some nations are intensifying their efforts to bolster support to expand their PV capacity further, aligning with climate objectives.Increasing competitiveness in Europe’s renewable energy auctions.Prosumers, entities that both produce and consume energy, are emerging as influential market forces on a global scale. This shift is driven by rising electricity consumption costs and the increasing prevalence of photovoltaic (PV) systems, which are enhancing awareness of prosumer policies and expanding access to them.Major governments are taking initiatives to support and develop local solar value chains.Community solar in the United States is declining owing to interconnection delays.What Do We Cover in the Report?
Solar Power Market Drivers & Restraints
The study covers all the major underlying market dynamics that help the market develop and grow, as well as the factors that constrain global market growth.
The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.
Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and will function as a guide for you to analyze the degree of impact.
Solar Power Market Segmentation & Forecast
The report dissects the Global Solar Power Market into various segments based on end-use sector (utilities, residential, and non-residential). A detailed summary of the current scenario, recent developments, and global market outlook will be provided for each market segment.
Further, Solar Power Market share, size, and demand forecasts will be presented, along with various drivers and barriers for individual market segments.
Regional Market Analysis
The report covers detailed profiles of major regions across the world. Each region's analysis covers the current market scenario, market drivers, government policies & regulations, and market outlook.
In addition, market size, demand forecasts, and growth rates will be provided for all regions. The region is segmented geographically into North America, Europe, Asia-Pacific, and the rest of the world (South America, Middle East and Africa).
This report helps to:-
Gain a deeper understanding the global solar power market.Equip yourself with rigorous analysis and forward-looking insight into the global solar power market across various regionsGain an understanding of uncertainty and discover how the most influential growth drivers and restraints in the regions will impact market developmentAssess market data and forecasts to understand how the demand for different segments evolve over the next five yearsGain a comprehensive view of the emerging market trends and developments to assess market opportunitiesBe better informed of your competition by gaining access to detailed information and analysis of key industry players.Keep on top of M&A developments, JVs, and other agreements to assess the evolving competitive landscape and enhance your competitive position.Download Free Sample
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