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Solar power is the most abundant, inexhaustible and clean of all the renewable energy resources till date. Energy from sun can be considered the main source of all types of energies. Solar power is the most reliable and clean energy resources, and proves to be a viable alternative to fossil fuels that are currently responsible for polluting the environment and contributing to global warming. Solar power is generated through various technologies such as solar photovoltaic, concentrated solar power (CSP), solar thermal and concentrated photovoltaic.This report comes with 10% free customization, enabling you to add data that meets your specific business needs.
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Solar power has experienced phenomenal growth in recent years due to both technological improvements resulting in cost reductions and government policies supportive of renewable energy development and utilization. Solar photovoltaic system employs solar modules; consist of number of solar cells, which generate electrical power. Solar photovoltaic is the biggest Solar Power Market; followed by concentrated solar thermal (CSP). In recent years solar photovoltaic installation has experienced an impressive growth. Solar PV cumulative capacity is increased by more than 850 GW in 2021 globally. Correspondingly the cumulative capacity of concentrated solar power also registered average annual growth rate of more than 6%. For solar power market many governments of different countries have set clean energy targets, and are trying to achieve them by switching over to renewable energies such as solar. Solar photovoltaic is becoming the lowest-cost option for electricity generation in most of the country, which is expected to propel investment in the upcoming years. However, the net zero emission by 2050 and many initiatives by different governments towards renewable energy is likely to drive the market of solar power and other renewable energies.
According to the research report 'Global Solar Power Market Outlook, 2030,', the Global Solar Power market was valued at more than USD 247.51 Billion in 2024, and expected to reach a market size of more than USD 496.97 Billion by 2030 with the CAGR of 12.58% from 2025-2030. The growth of the global solar energy market is majorly driven by an increase in energy demand due to a surge in population. In addition, surge in need for sustainable energy resources has been witnessed across the globe, coupled with favorable government regulations that have boosted market growth. These regulations focus on reduced dependency on fossil fuels and help in controlling environmental pollution.
This in turn favors the demand for renewable energy sources such as solar energy. In addition, the reduction of carbon footprint and an upsurge in the need for low-cost energy generation are expected to propel the solar energy market growth. With the increase in carbon reduction, power generation through renewable sources is considered the best feasible substitution for conventional power sources such as oil and coal products and is increasing at a healthy rate. According to the Solar Energy Industries Association, the number of solar permits issued in the week beginning March 30th, 2020 in the U.S. was 32% lower than the first week of February, indicating the precise impact of the pandemic on solar activity due to the shelter-in-place restrictions and decreased business & consumer confidence. About 70% of the world’s solar panels are manufactured in China, and around 10-15% of the reserve is accommodated by Chinese companies working in Southeast Asia. In February, solar PV manufacturing facilities in China paused or decreased their production due to lockdowns in several key provinces. Power generation through renewable sources is the best possible replacement for conventional power sources with the increase in carbon reduction. For instance, oil products and coal are increasing at a constant rate. Further, the construction of new grids and mass storage systems by utilities to utilize the captured energy from renewables also poses an opportunity for the solar power market growth. Moreover, solar energy may be a cost-effective solution for providing electricity to rural communities, where grid connections are often non-existent or expensive to install. These communities may generate their electricity, reducing their reliance on expensive and often unreliable diesel generators by harnessing the power of the sun. This, in turn, may improve their economic prospects and quality of life.
Market Drivers
Decreasing Cost of Solar Technology: One of the most significant drivers for the growth of solar power is the consistent decrease in the cost of solar technologies, particularly solar panels. Over the past decade, advancements in manufacturing processes, economies of scale, and technological innovations have resulted in the dramatic reduction of solar panel prices. As of the 2020s, solar is often one of the most cost-competitive energy sources in many regions, even in comparison to fossil fuels. This price decline has made solar power more accessible to a broader range of consumers, including both residential users and large-scale utility companies.Government Policies and Incentives: Governments worldwide have been key drivers in the growth of solar power by implementing favorable policies, incentives, and subsidies aimed at reducing carbon emissions and supporting clean energy transitions. These policies include tax incentives, grants, and feed-in tariffs (FITs) that guarantee solar power producers a fixed payment for the electricity they generate. Additionally, renewable energy targets and carbon emission reduction commitments, especially from nations under the Paris Agreement, have pushed countries to invest in clean energy sources like solar.
Market Challenges
Intermittency and Energy Storage Challenges: One of the primary challenges for solar energy is its intermittent nature - solar power generation is highly dependent on sunlight, meaning it is not available at night or during cloudy weather. This creates a need for effective energy storage solutions to ensure a reliable and continuous power supply. While battery technology has improved, large-scale energy storage solutions are still relatively expensive and not yet widely available at the required scale. Without advancements in cost-effective and efficient storage solutions, grid integration and the ability to match solar energy production with demand will remain a challenge for many markets.Land and Space Constraints for Large-Scale Installations: Another challenge for the global solar power market is the availability of land for large-scale solar farms. In densely populated areas or regions with high land costs, finding space for large solar installations can be difficult. This is especially true in urban areas where space is limited. Moreover, in some regions, the land needed for solar farms might conflict with agricultural use, leading to resistance from local communities.
Market Trends
Rise of Distributed Energy Generation: The concept of distributed energy generation (DEG) refers to the production of energy close to where it is consumed rather than relying on centralized power stations. Solar power is a central player in this trend, especially with residential and commercial installations becoming more common. Coupled with advances in battery storage technology, the rise of solar-plus-storage solutions enables individuals and businesses to become more energy-independent, providing an additional revenue stream for solar companies through battery sales.Integration of Artificial Intelligence and IoT in Solar Power Systems: The integration of artificial intelligence (AI) and the Internet of Things (IoT) into solar power systems is becoming increasingly important. AI and IoT enable smarter grid management and more efficient energy production and consumption. Solar power systems can now use AI to predict energy generation based on weather conditions and optimize power output, maintenance schedules, and energy storage. For instance, AI algorithms can analyze data from solar panels and sensors to detect potential faults early, improving the longevity and efficiency of solar installations.
Photovoltaic (PV) systems are leading in the solar power industry due to their remarkable efficiency improvements and cost reductions, making them the most viable and scalable solution for clean energy generation.
The rise of photovoltaic (PV) systems in the solar power industry is a testament to their unparalleled efficiency and cost-effectiveness. Over the past few decades, PV technology has undergone significant advancements, transforming it from a niche technology to a mainstream energy solution. The efficiency of PV panels, which convert sunlight directly into electricity, has seen a dramatic increase. Early PV panels had an efficiency of around 6%, but modern panels can achieve efficiencies of up to 24.5%, with laboratory tests pushing this figure even higher. This improvement means that more electricity can be generated from the same amount of sunlight, making PV systems more effective and reliable.
The cost of PV modules has dropped by 99% over the past four decades. This decline is attributed to economies of scale, technological advancements, and supportive government policies. For instance, subsidies, market incentives, and feed-in tariffs have played a crucial role in making solar power more affordable and attractive to investors. The scalability of PV systems is another critical factor in their success. PV technology can be deployed in various settings, from small residential rooftops to large utility-scale solar farms. This flexibility allows for widespread adoption across different regions and applications. Utility-scale PV plants, in particular, have become the backbone of the clean energy revolution, providing substantial electricity volumes to national and regional grids. Moreover, PV systems contribute significantly to environmental sustainability. By generating electricity without greenhouse gas emissions, they help reduce the reliance on fossil fuels and combat climate change. The long service life of PV systems, often exceeding their payback period, ensures that they remain a cost-effective and environmentally friendly energy solution over time.
Solar panels are leading in the solar power industry due to their versatility and widespread applicability, making them the most accessible and adaptable solution for harnessing solar energy.
Solar panels have become the cornerstone of the solar power industry, primarily because of their remarkable versatility and widespread applicability. These panels, which convert sunlight directly into electricity through photovoltaic cells, can be deployed in a variety of settings, from residential rooftops to large-scale solar farms. This adaptability allows for the integration of solar energy into diverse environments, catering to the energy needs of households, businesses, and entire communities. Solar panels also offer significant environmental benefits, contributing to their popularity in the solar power industry.
By generating electricity without emitting greenhouse gases, solar panels help reduce the carbon footprint and mitigate climate change. The production and installation of solar panels have a relatively low environmental impact compared to other energy sources, and efforts are continually being made to improve the sustainability of the entire lifecycle of solar panels, from manufacturing to disposal. The technological advancements in solar panel efficiency have further cemented their leading position in the industry. Modern solar panels are capable of converting a higher percentage of sunlight into electricity, making them more efficient and reliable. Innovations such as bifacial panels, which capture sunlight from both sides, and the development of perovskite solar cells, which promise even higher efficiencies, are pushing the boundaries of what solar panels can achieve. These advancements ensure that solar panels remain at the forefront of renewable energy technology, continually improving their performance and cost-effectiveness.
Ground-mounted solar installations are leading in the solar power industry due to their superior scalability and efficiency, making them ideal for large-scale energy production.
Ground-mounted solar installations have emerged as a dominant force in the solar power industry, primarily because of their unparalleled scalability and efficiency. Unlike rooftop solar systems, which are limited by the available roof space and structural constraints, ground-mounted systems can be installed on vast expanses of open land. This flexibility allows for the deployment of large-scale solar farms that can generate significant amounts of electricity, meeting the energy demands of entire communities or industrial operations. The ability to scale up installations without the limitations of roof space is a critical factor driving the adoption of ground-mounted systems.
The key advantages of ground-mounted solar installations is their optimal placement for maximum sunlight exposure. These systems can be strategically positioned and angled to capture the most sunlight throughout the day, enhancing their overall efficiency. Fixed-tilt systems, which are set at a constant angle, are cost-effective and require minimal maintenance. On the other hand, tracking systems, which follow the sun's movement, can increase energy output by up to 25-30% compared to fixed-tilt systems. Furthermore, ground-mounted installations do not pose the risk of roof damage, which can be a concern with rooftop systems. The weight and installation process of rooftop panels can sometimes compromise the structural integrity of the roof, leading to potential leaks or other issues. Ground-mounted systems eliminate this risk, providing a more secure and stable installation option.
The growth of residential solar applications in the solar power industry is driven by the increasing affordability and accessibility of solar technology, coupled with rising environmental awareness and supportive government policies.
The surge in residential solar applications is a multifaceted phenomenon, primarily fueled by the decreasing costs of solar technology and the growing awareness of environmental issues. Over the past decade, the cost of solar panels and related equipment has plummeted, making solar power a financially viable option for homeowners. This price drop is largely due to advancements in manufacturing processes, economies of scale, and increased competition within the industry. Government policies and incentives have also played a crucial role in promoting residential solar applications. Many countries offer subsidies, tax credits, and rebates to encourage homeowners to invest in solar energy.
These financial incentives reduce the upfront costs of solar installations, making them more accessible to a broader range of consumers. Additionally, net metering policies, which allow homeowners to sell excess electricity back to the grid, provide an additional financial benefit, further incentivizing the adoption of residential solar systems. As concerns about climate change and environmental degradation continue to rise, more individuals are seeking ways to reduce their carbon footprint and contribute to a sustainable future. Solar power, being a clean and renewable energy source, offers an attractive solution for environmentally conscious homeowners. By generating their own electricity, homeowners can significantly reduce their reliance on fossil fuels, lower their energy bills, and decrease their overall environmental impact.
The Asia-Pacific (APAC) region is leading in the solar power industry due to its substantial investments in renewable energy, driven by favorable government policies, abundant solar resources, and a strong commitment to reducing carbon emissions.
The APAC region's dominance in the solar power industry is a result of a confluence of factors that have created an ideal environment for the growth and expansion of solar energy. One of the primary drivers is the significant investment in renewable energy infrastructure. Countries within the APAC region, such as China, India, Japan, and South Korea, have committed substantial financial resources to develop and expand their solar power capabilities. This investment is not only in the form of direct funding for solar projects but also through incentives and subsidies that make solar energy more attractive to both consumers and businesses. Many APAC countries have implemented supportive policies that encourage the adoption of solar energy.
These policies include feed-in tariffs, tax incentives, and renewable energy targets that mandate a certain percentage of energy to be generated from renewable sources. For example, China's aggressive renewable energy targets and substantial subsidies have propelled it to become the world's largest producer of solar energy. Similarly, India's ambitious solar energy goals, supported by initiatives like the National Solar Mission, have spurred rapid growth in the sector. The APAC region is also blessed with abundant solar resources, making it an ideal location for solar power generation. Countries like Australia, India, and Thailand receive high levels of solar radiation throughout the year, providing a consistent and reliable source of energy. This natural advantage, combined with technological advancements in solar panel efficiency, has made solar power a viable and attractive option for energy generation in the region. The ability to harness this abundant solar energy has enabled APAC countries to reduce their reliance on fossil fuels and move towards a more sustainable energy mix.
Major Companies present in the market
Canadian Solar Inc., Trina Solar Co., Limited, Jinko Solar Holding Co., Limited, Longi Green Energy Technology Co., Limited, JA Solar Technology Co., Limited, Sunpower Corporation, First Solar Inc., Hanwha Corporation, Abengoa, S.A., Engie SA.Considered in this report
- Geography: Global
- Base year: 2024
- Estimated year: 2025
- Forecast year: 2030
Aspects covered in this report
- Global solar power market with its value and forecast along with its segments
- Region-wise solar power market analysis
- Various drivers and challenges
- On-going trends and developments
- Top profiled companies
- Strategic recommendation
Regions covered in the report
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle-East & Africa
Types of Technology in the report
- Solar Photovoltaic
- Concentrated Solar Power (CSP)
- Others
By Product
- Solar Panels
- Charge Controllers
- Batteries
- Inverters
- Others
By Installation
- Ground mounted
- Roof mounted
- Others
By Application in the report
- Residential
- Commercial/ Industrial
- Others
The approach of the report
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases.After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.
Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to solar power industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.
Table of Contents
1. Executive Summary5. Economic /Demographic Snapshot13. Strategic Recommendations15. Disclaimer
2. Market Dynamics
3. Research Methodology
4. Market Structure
6. Global Solar Power Market Outlook
7. North America Solar Power Market Outlook
8. Europe Solar Power Market Outlook
9. Asia-Pacific Solar Power Market Outlook
10. South America Solar Power Market Outlook
11. Middle East & Africa Solar Power Market Outlook
12. Competitive Landscape
14. Annexure
List of Figures
List of Tables
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- JA Solar Holdings Co., Ltd.
- Waaree Energies Ltd
- Risen Energy Co., Ltd.
- Canadian Solar Inc.
- Sungrow Power Supply Co., Ltd.
- Tata Power Company Limited
- NextEra Energy Inc
- Adani Green Energy Ltd
- GCL System Integration
- LONGi Green Energy Technology
- First Solar, Inc.
- SunPower Corporation
- AIKO Solar
- Solaronix S.A.
- Scatec ASA
- Yingli Green Energy Holding Company Limited
- Sunrun Inc.
- Trina Solar
- Nextracker Inc
- SMA Solar Technology AG