SOLAR PV PANELS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

The high initial installation costs involved in setting up solar PV panels is considerably restraining the growth of the global solar PV panels market. Solar PV systems require substantial capital investment for purchasing the panels, inverters, mounting structures, wiring and other electrical components. These upfront costs associated with installing commercial or residential solar PV arrays can range anywhere between US$15,000 to US$30,000 depending on the size and capacity of the system. The payback period on this investment is also generally long, ranging from 5-10 years even after considering incentives and net metering policies.

Market Opportunities: Growing investment in renewable energy

The growing investment and demand for renewable energy sources across the globe presents a huge opportunity for the global solar PV panels market. Many countries have announced ambitious targets to increase the share of solar and other renewable energy in their overall energy mix in the coming years to reduce carbon emissions. For instance, according to International Renewable Energy Agency (IRENA), over 175 GW of new solar PV capacity was added globally in 2021 alone. IRENA estimates that solar PV installations must rise by over 60% annually till 2030 to limit global warming below 1.5°C.