Energy demand is always growing. Electricity is necessary in powering industries and homes all over the world. As economies grow, more energy is required. The entry of solar power is a game-changer. The solar energy market is robust, and projections show it could reach $223.3 billion by 2026.
There are various methods to harness solar energy. Such include solar heating, solar panels or photovoltaic cells, and many others. Its popularity and growth stem from its provision of clean energy solutions. Let us look at how the global solar energy market has changed over the years.
An Overview of Global Solar Energy Market
Solar power is available in many developed and developing nations. Countries with the largest solar energy resources globally include the USA, India, China, Germany, and Spain.
Current Solar Energy Market Trends
Across the globe, there is an increasing electricity demand. Factors such as growth in population, industrialization, infrastructure development have led to this demand. Need for improved living standards and growth in economies directly affect the increase in energy consumption.
As a result of this demand, many countries across the globe are increasing their energy production. They do so by expanding existing capacity in power plants or building new ones. Also, governments have set stringent measures to prevent pollution. For this reason, many people are seeking renewable energy sources to meet the energy demand. Solar is quickly growing in popularity, which will push its growth.
Factors Leading to the Growth of Solar Power
1. An increase in Solar investment
World over, there has been an increase in strict laws protecting the environment. As a result, more and more companies are shifting to environmentally-friendly sources of energy. Most companies are now at the forefront of increasing clean energy production and doing away with fossil fuels. The ability for solar to provide solutions to the challenges we face makes it an option for many.
2. Government Incentives Supporting Solar Energy
A key driver in the growth of solar energy is the participation of governments. Such participation has come in various forms, such as incentives and policies supporting solar power. Governments in the US, Japan, China, and EU countries offer incentives such as investment tax credits, feed-in-tariffs, net-metering, and subsidies geared towards encouraging solar adoption.
As a result, there has been a decrease in fossil fuel reliance over the last few years. Several countries are establishing renewable energy projects. For example, in China, farmers are growing plants that require shade under PVs to maximize land use. This practice is commonly known as PV + agriculture.
As governments continue to improve these incentives, there will be a drastic rise in solar power usage. However, countries that cut back on the incentives have seen a dip in solar energy adoption, for example, in the UK, where they terminated the incentive program.
Factors Limiting the Growth of the Solar Energy Market
When you look at efficient and large-scale solar energy production, there is a demand for vast tracts of land. Selecting the appropriate space for such a project can be hindered by technical and environmental reasons—the main factor being solar radiation presence.
Additionally, putting up such a project is bound to have an impact on the environment. Natural habitats and biodiversity can be affected in the process. For example, in areas such as agricultural lands, wetlands, forests, and other water bodies, it is impossible to put up solar farms due to instability or inaccessibility.
Also, when putting up a solar plant, one ought to consider other factors. These include the availability of a transportation network, the electricity grid’s accessibility, and how the plant affects people nearby.
Another factor that limits the growth of the solar energy market is the demand for power storage systems. The nature of solar energy requires it to be used immediately or stored for future use in large batteries. This is an added cost when one is installing power, limiting its widespread adoption.
Lastly, developing nations face a considerable problem with solar energy. Most of these countries do not have an option to connect to the grid. They have to invest in power storage, which can hinder the growth and use of solar.
Geographical Segmentation in Solar Energy
Geographically, the global solar market is divided into North America, Asia Pacific, Europe, Middle East, and Africa. The markets expected to command the highest share in the market in the coming years are North America and Europe. The main reason for this growth is the government’s solar energy incentives. Increased sensitization on environmental conservation practices also plays a role.
Solar power generation in countries such as India, China, and Japan has led to the APAC region’s growth. Currently, this region is leading in solar power generation. The factors contributing to this growth are high solar power irradiance and affordable solar parts. APAC countries have also set ambitious goals to reduce carbon emissions. By far, China is the largest solar market in the world.
In 2019, Europe was the largest market. They installed 16.7GW, which increased more than 104% compared to 2018, where the installations were 8.2GW.
The middle East and African region installation were at 6.8GW of new solar panels. The figure doubled from the previous year, where the installation stood at 3.1GW. Improper network for electricity is one of the contributing factors.
Global Solar Market Opportunities
For solar to replace the current sources of energy, photovoltaic (PV) storage systems are required. As the demand for solar energy increases, the need for reliable grid storage will also grow. As a result, lithium-ion batteries demand will rise, which will increase the solar market.
Another component of solar that will grow is the amorphous silicon cells segment due to increased installations. Copper indium gallium selenide (CIGS) technology should also be on the rise. As demand and technology grow, the manufacturing costs will go down. This will increase solar module efficiency.
Global Solar Market Outlook
Solar is the cheapest and environmentally friendly source of energy. As more people acknowledge the impact of solar energy on the environment, they are adopting it. For this reason, global market leaders need to reform the solar energy sector.
New policies on solar power can help the transition from overpriced fees. They can also establish more incentives to encourage people to use solar. Countries can also learn from one another, such as China’s embrace of solar power as the energy for the future.
As the solar power market grows, it becomes more important for regions and countries to have a working, reliable governance framework for solar. This will allow nations to create a guideline for attaining clean and renewable energy production. Such policies encourage innovators seeking to join the solar market by providing security.
Establishing electricity market designs is also required. The goal is to allow profitability in the solar market bearing in mind costs such as storage and distribution.
Finally, the growth of the solar market will be smooth once countries overcome trade barriers. There are import tariffs between countries, which goes on to add to the overall solar cost.
Solar power has rightfully taken its place as a game-changer in the energy sector. Globally, this industry is on an upward trend. It is creating jobs; in all countries that adopt the technology. Not only does solar power create jobs, but it also leads to economic growth.
Globally, a reduction in fossil fuel dependence can only be good for the environment. The more people use solar, the more the carbon footprint reduces. Such changes are good for the environment as it addresses issues of climate change and global warming. The more countries adopt solar energy, the more solar prices reduce. As the solar process continues to drop, solar will become more affordable to more people.
You can be part of the global solar energy market if you install the panels. The move will not only reduce carbon footprint, but it will also create jobs for the locals. Contact us today and start your journey to a renewable, clean, and reliable energy source.