SOLAR PHOTOVOLTAIC (PV) MARKET ANALYSIS

Market Challenges And Opportunities

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 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.