SOLAR PHOTOVOLTAIC (PV) MARKET ANALYSIS

The global solar photovoltaic (PV) market size was valued at US$ 1144.7 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 22.36% from 2023 to 2030. Growing focus on energy saving and reducing energy bills are expected to drive growth of solar PV market. As solar systems are able to produce around 50% of the energy that a typical household uses in a year, they’ll be able to reduce bills significantly. As a result, solar panels have the potential to help address issues like energy poverty worldwide and reduce the burden of fossil fuel dependency on the planet’s resources. This is a positive development for future generations, as well as the global economy. Shifting focus towards renewable source of energy due to growing environmental concern is another key factor propelling market growth. Using renewable energy technologies is an important step to combat climate change. Photovoltaic technology can generate electricity without emitting carbon dioxide into the air as it works, which is a huge reduction in impact on the environment.

Global Solar Photovoltaic (PV) Market: Regional Insights

Based on geography, the global solar photovoltaic (PV) market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Regionally, Asia Pacific is the largest market for solar PV and will grow at a strong pace during the forecast period. The region is witnessing a significant rise in the adoption of solar photovoltaic panels due to growing awareness about using clean energy. In addition, a number of governments in the Asia Pacific region have launched various policies to encourage the use of solar energy.

Europe is also a major market for solar PV and will continue to expand at a rapid pace during the forecast period. The region is characterized by high levels of sunshine and favorable policies for promoting solar energy. In addition, a number of European countries are offering incentives to promote the adoption of solar energy.

Figure 1. Global Solar Photovoltaic (PV) Market, By Region 2022

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Global Solar Photovoltaic (PV) Market Drivers:

Upcoming projects and favorable government policies to augment market growth

Government around the globe have launched various policies to encourage the installation of solar PV. According to Asia Europe Clean Energy (Solar) Advisory Co. Ltd estimations the demand for utility-scale solar projects is expected to reach 60-75 GW capacity in China during 2021. In 2019, China planned to install 41 GW (including 3.5 GW of residential PV) of solar projects, but on account of delay in policy release, unavailability of land, challenges to mobilize financing, and grid connection issues, only 17.5 GW was installed by October 2019.

Reducing price and installation cost of PV to foster market growth

According to the Coherent Market Insights analysis, in 2019, the average selling price of solar PV modules was around USD 0.2 per watt, decreasing by nearly 65% compared to 2015. On the other hand, the selling price of multi-crystalline modules fell to USD 0.23 per watt in 2019 from USD 0.4 per watt in 2018. Among the primary market, China witnessed the highest decline in solar PV module cost in 2019. Apart from China, South Korea also witnessed a significant decrease in solar PV module prices. During 2019, the rate of a solar module decreased by nearly 67% compared to the price in 2013.

Global Solar Photovoltaic (PV) Market Opportunities:

A number of players have incorporated new technologies to improve the quality and performance of the solar panel. This is expected to hold bright market opportunities. For instance, in December 2022, Soloes, one of the EPC service providers, has recently introduced its unrivalled solar panel- ANTARES BI 144. Recognizing the latest advancements and development in the energy sector, the company launched its sought-after solar panel module.

One of the most promising technologies to increase solar cell efficiencies is the development of multi-junction silicon cells. Advent of multi-junction silicon cells is expected to hold potential market opportunities. These solar cells absorb different parts of the sunlight spectrum, maximizing the amount of energy that can be converted into electricity. These cells have already reached a world record for efficiency, and are expected to continue to improve as technology progresses. In the future, scientists hope to use these cells on boat sails, drone wings, and tents, enabling solar energy to be used in places where there is no sun or where it is not possible to build conventional solar panels.

Global Solar Photovoltaic (PV) Market Trends:

Ongoing research and development activities is a recent trend

For instance, in July 2020, the Electronics and Telecommunications Research Institute (ETRI) in South Korea succeeded in developing eco-friendly color Cu (In, Ga) Se2 (CIGS) thin-film solar cells. Thin-film solar cells are manufactured by applying a thin film of photovoltaic material onto a substrate such as glass, plastic, or metal. They are the easiest and least expensive kinds of solar cells to manufacture.

Government support in the form of subsidiaries especially for residential sector

For instance, the power ministry stated that Central Financial Assistance (CFA) of 40% of the benchmark cost would be provided for rooftop solar projects up to 3 kW capacity, 20% for system capacity beyond 3 kW, and up to 10 kW for individual households. Hence, such initiatives by the government are projected to stimulate the residential solar PV installations in India.

Global Solar Photovoltaic (PV) Market Restraints:

Increasing adoption of alternate clean power sources to hinder market growth

According to the Global Wind Energy Council (GWEC), globally, 71.3 GW of new wind energy installations were added in 2020. Moreover, according to International Energy Agency, the global offshore wind market is expected to expand by 13% per year, passing 20 GW of additions per year by 2030. The major projects in offshore wind power included the 950 MW Moray Firth East array in the North Sea, which involved an estimated investment of US$ 3.3 billion.           Hence, such rise in adoption of alternate clean power source is expected to restrict the solar PV market growth.      

High maintenance cost of PV systems to hamper market growth   

The cost of PV systems is still higher than those of conventional energy sources. This makes them a less attractive option for many consumers. Also solar panels must be maintained well in order to ensure their efficiency.   Hence, high cost of the solar PV is projected to hamper the market growth. However, increasing government support will open new avenue for the solar PV market.

Figure 2. Global Solar Photovoltaic (PV) Market, By type 2022

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Global Solar Photovoltaic (PV) Market Segmentation:

The global solar photovoltaic (PV) market report is segmented into type, end user, deployment, and geography

Based on type, the market is segmented into Thin Film, Multi-Si, and Mono-Si. Out of which, Multi-Si is expected to dominate the global market over the forecast period. They are popular among homeowners looking to adopt solar panel on budget. They are manufactured by melting together many shards of silicon crystals to form a crystalline structure.

Thin Film segment is also expected to witness significant growth in the near future. They are less expensive to produce and require fewer construction materials.

Based on end user, the market is segmented into Residential, Commercial, and Utility. Out of which, Residential is expected to dominate the global market over the forecast period and this is attributed to their benefits offered same as modern electricity by reducing electricity costs. As of 2020, nearly 1.8% of homes across the largest metro areas around the world have installed rooftop solar PV. California in the United States has the highest penetration in this segment, with a 1.8% share.

Commercial segment is also expected to witness significant growth in the near future owing to the increasing number of commercial solar PV installation. For instance, South Africa, two recently announced tenders in 2020 are expected to increase commercial solar PV capacity by at least 80 MW during 2021 and 2022.

Based on deployment, the market is segmented into Ground-mounted and Rooftop Solar. Out of which, Ground-mounted is expected to dominate the global market over the forecast period and this is attributed to the fact that it is economical, increasing number, and offer maintenance and operation efficiencies. According to the Ministry of New and Renewable Energy (MNRE), the total grid-interactive solar power installed capacity reached 35.739 GW as of August 30, 2020, out of which ground-mounted solar PV capacity was at 32.651 GW and the rest 3.089 GW was from rooftop solar

Rooftop Solar segment is also expected to witness significant growth in the near future. Rooftop solar segment is the fastest growing clean energy segment worldwide as it offers reliable electricity to both urban and rural consumers.

Global Solar Photovoltaic (PV) Market: Key Developments

In March 2021, A contract has been secured by First Solar Inc. from Intersect Power to supply 2.4 GW DC of solar modules. The company supplies Series 6 photovoltaic solar modules through this contract.

In September 2020, JP Energie Environment selected First Solar’s Series 6 photovoltaic solar modules for its 59- megawatt (MW) DC Labarde solar power plant.

In August 2020, First Solars’ 141-megawatt (MW) Luz del Norte photovoltaic  (PV)  power  plant  became  the world’s  first  known  utility-scale  solar  facility licensed  to  deliver  ancillary  grid  services commercially.

In June 2020, A 15-year power purchase agreement (PPA) was signed by First Solar with chemical company Dow for its Gulf Coast operations. Under this agreement, First Solar supplies renewable energy from 75% of its 200- MWac Horizon Solar project in Frio County, Texas. Moreover, this project uses First Solar’s Series 6 PV modules, designed and developed at the company’s R&D centers in California and Ohio.

In Apirl 2021, Suntech signed a co-operation agreement with Lead Intelligent and Leadmicro for establishing the first digitized smart factory for high-efficiency (24%) TOPCon PV Cells. The total capacity is expected to be 2 GW

In March 2021, SunTech announced the IEC certification and launch of its Ultra V series for European markets

In October 2021, Suntech announced the launch of the Phase I Zibo 3GW PV Module Project in Zhoucun District, Zibo City. The plant will produce  210mm  large-size  multiple  busbar  and  high- performance module, with 182mm multiple busbar cells production  as  supplementary,  which  will  realize  mass production of 560 W+ modules, and is expected to be functional by March 2021

In December 2020, Sharp Energy Solutions completed 50 MW DC solar project in Binh Dinh province, Vietnam. This project has taken Vietnam’s total installed solar capacity to 340 MW DC.

In January 2021, Sharp Energy Solutions Corporation (SESJ) announced the completion of two rooftop solar array installations totalling of 5 MW DC in Thailand. The photovoltaic (PV) systems were built on top of the Bang Pa-in and the Lopburi factories.

In May 2020, Jinko Solar announced the official launch of its 2020 flagship Tiger Pro module series. The module series can generate maximum power output of up to 580 Wp, which is 40% higher than current mainstream products installed in utility projects.

Global Solar Photovoltaic (PV) Market: Key Companies Insights

The global solar photovoltaic (PV) market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global solar photovoltaic (PV) market are First Solar Inc., Suntech Power Holdings Co. Ltd, Sharp Corporation, JinkoSolar Holding Co. Ltd, JA Solar Holdings Co. Ltd, Trina Solar Ltd, Hanwha Q Cells Co. Ltd, Acciona SA, Canadian Solar Inc., SunPower Corporation, and LONGi Green Energy Technology Co. Ltd

*Definition: Solar PV is a renewable source of energy that is environmentally friendly, accessible to the masses, and can be used in many areas where traditional transmission lines are costly. It is also relatively easy to assemble and install, making it an attractive choice for homeowners who want to cut their dependence on the utility company.