The global market for solar power generation systems is forecast to register great growth during the marked forecast period 2018 to 2025. In the total electricity production, the renewable energy market contributed around 18.79%, out of which as of 2018 the solar energy’s contribution stood at 5.44%. The good news for solar module manufacturers is that the PV segment is known to have dominated the market share in the previous year.
Certain factors that are driving the market study are encouraging policies by the government of different countries and declining cost of setting up solar module systems. Between 2010 to 2015, we saw a clear decline in the price of solar technologies which is about 52%. This reason has been encouraging people to harness solar energy through solar technologies and that has become one of the biggest drivers in the increasing adoption of solar PV in the country.
Moreover, factors such as the dire need to pay attention to environmental issues like greenhouse gas emissions, fluctuating fossil fuel prices, increasing industrialization, awareness programs, beneficial policies by the government, etc. are making ways for the utilization of solar energy for the power generation. Besides this, using solar power has helped industries and companies reduce their electricity bills to a great extent; the visible benefits of harnessing solar energy is an encouraging fact that triggers the growth of solar power generation systems. Also, solar panel manufacturers in India are making new developments and innovating their technologies to make it more efficient.
India is blessed with the availability of solar irradiance in abundance throughout the year. The increasing innovation and awareness create opportunities to exploit solar energy from the potential sunniest sites like Gujarat, Rajasthan, and Andhra Pradesh. Combining the aforementioned factors with the extensive R&D taking place in the Indian market shows signs of growth in the solar energy market in the country.
Global Market Segmentation Analysis
The global market for solar power generation has segments based on product type, product application, and the region. The type includes stand-alone systems and grid-connected solar power generation systems. According to the latest report, the grid-connected system is anticipated to witness considerable growth. On the basis of end application, it has industrial, residential, and commercial segments. As per the report, the industrial segment is set to mark a decent growth and dominate the application segment of power generation systems in the coming years.
Key Trends in India at a Glance
- India is witnessing and is forecast to witness the increasing demand for Solar PV.
- India is endowed with great solar energy harnessing potential due to abundant solar irradiance. The average solar incident over the land in India ranges between 4-7 kWh per day. This shows greater chances of solar power-sharing a decent share in the energy production of the country.
- As compared to other conventional energy sources, solar energy is becoming inexpensive. Owing to the innovations in the solar sector that has led to declining prices of solar PV. With anticipated developments in solar technology and increased import of panels from Europe/China (countries that produce solar power system at considerably cheaper rates), the capital costs at lower levels are expected to stabilize. As a result developers or investors in solar power are expected to improve the commercial viability of solar developments in our country.
- With the government creating awareness for solar installation and providing subsidized solar panels installation, the solar PV installations are anticipated to increase in the forecast period.
