Market Dynamics in the Solar PV Market
In the last decade, a rapid increase in global warming made global leaders think about its effects on the earth's climate and take necessary measures to control it. During this, solar energy has gathered all global attention and it has been seen as an alternative source of energy. Solar energy is unconventional energy, which is harnessed by using technologies such as solar thermal and photovoltaic cells. Solar energy is a convenient renewable solution toward growing greenhouse emissions and global warming.
- The solar photovoltaic market is higher for the ground-mounted utility-scale solar energy segment than the rooftop segment, as they are mainly used for commercial and utility purposes.
- Ground-mounted solar energy for commercial or utility projects is economical due to the economies of scale, number of installation, and operation and maintenance efficiencies
- Measures were taken by various international agencies and regions for reducing the carbon footprint and decarbonization of the energy sector. It’s expected to have around 13% of solar energy share in the total energy generation by 2030, with more than 2000 GW of installed capacity.
- In 2018, the top five countries of the solar PV market are China, the United States, Japan, India, and the United Kingdom. In terms of cumulative capacity, the top two countries are China and Japan, which accounted for about two-thirds of the global solar PV addition.
- Technological advancements such as monocrystalline wafer have led to cost reductions in both installation and operation & maintenance prices.
The solar energy market is driven by an increase in global warming and provision of government incentives such as subsidies, waiver of Inter-State Transmission System (ISTS) charges and losses, financing solar rooftop systems & tax rebates to install solar panels. A decrease in water footprint associated with solar energy systems has fuelled their demand in power generation sectors. In addition, the feed-in tariff (FIT) is also the main driver for the growth of the solar energy market.
solar power plants have a greenhouse gas footprint due to the production of PV system components and installation of the system. China is a major importer of Solar PV component but due to COVID-19, the global supply chain has been impacted and most of the projects in China, the US, Germany, and South Korea are delayed. In addition, overall climatic conditions and geographical latitudes restrain the growth of the solar energy market, especially in snowfall- and rainfall-prone regions.
Small-scale solar installation should be promoted such as a rooftop solar system by creating a regulatory framework that incentives small-scale PV installation. Smart cities will create more opportunities for solar energy systems such as smart building, solar-powered urban lighting, solar-powered charging points, solar mobility, and much more innovation in the coming years. Solar & storage installation will reduce network costs and optimizes solar supply.
Solar energy requires high capital cost, the business needs external support in the form of incentives or policies to be economically feasible, thus increasing dependence on government policy reforms. China is a central hub of the PV components such as Solar PV cells and modules and crises like COVID-19 will disrupt the solar energy market. The distributed and intermittent nature of solar energy makes it difficult for utilities to rely on solar PV for their baseload. Land scarcity and the skilled worker is also one of the major challenges for emerging countries.