Solar Panels Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

In 2022, the value of the solar panels market is expected to reach a total of about 131 billion dollars and will reach 282 billion dollars in 2030, at a strong CAGR of 12.63% from 2024 to 2030. This considerable growth trend reflects the increasing use of solar energy solutions as an alternative to fossil fuels, driven by the growing demand for sustainable energy and the urgent need to combat climate change. And the technological progress of the industry, with the improvement in efficiency and the reduction in production costs, is a further factor that will make solar panels more affordable for consumers, whether private or commercial. The leading players in the market, such as First Solar, Sunpower and JinkoSolar, are therefore taking active measures to strengthen their position. In fact, these companies are launching new products that meet the needs of various customer segments and establishing new strategic alliances with other companies. Among other things, the introduction of bifacial solar panels and integrated solutions has opened up new opportunities for growth, putting these companies at the forefront of the new energy revolution. And, moreover, the governments, with the introduction of new incentives and tax deductions, are expected to support the market with favorable incentives and regulations.

Regional Market Size

Regional Deep Dive

Solar Energy is the best alternative to fossil fuels. The demand for it is growing, and the price of electricity is falling. The market in North America is characterized by a strong emphasis on environmentalism and energy independence, while Europe leads the way in terms of governmental support for the use of solar energy. The Asia-Pacific region is growing fast, as a result of increasing urbanization and industrialization, while the Middle East and Africa are just beginning to tap into the enormous solar potential of their countries. Latin America is also becoming a major player, thanks to its investment in the necessary infrastructure and its favourable climatic conditions. Each region has its own unique culture and market conditions, such as the way people feel about using renewable energy, the financial incentives available, and the regulatory environment.

Europe

• The European Union's Green Deal aims to make Europe the first climate-neutral continent by 2050, which includes ambitious targets for solar energy adoption, driving investments and innovations in the sector.
• Countries like Germany and Spain are leading the way with large-scale solar farms and community solar initiatives, supported by government subsidies and favorable feed-in tariffs.

Asia Pacific

• China remains the largest producer and consumer of solar panels, with significant investments in solar manufacturing and technology, contributing to lower global prices and increased accessibility.
• India's ambitious National Solar Mission aims to achieve 100 GW of solar power capacity by 2022, fostering a competitive market environment and attracting foreign investments.

Latin America

• Brazil is emerging as a leader in solar energy in Latin America, with a growing number of distributed generation projects and supportive regulatory frameworks that encourage solar adoption.
• Chile's Atacama Desert is home to some of the world's largest solar power plants, benefiting from high solar irradiance and government policies that promote renewable energy investments.

North America

• The Inflation Reduction Act in the U.S. has significantly boosted solar panel installations by providing tax credits and incentives for both residential and commercial solar projects, leading to a surge in demand.
• Major companies like First Solar and SunPower are innovating with new solar technologies, including bifacial solar panels and energy storage solutions, enhancing efficiency and reliability.

Middle East And Africa

• The UAE's Mohammed bin Rashid Al Maktoum Solar Park is one of the largest renewable energy projects in the world, showcasing the region's commitment to diversifying its energy sources.
• Countries like South Africa are implementing feed-in tariffs to encourage solar energy adoption, while also facing challenges related to grid infrastructure and financing.

Did You Know?

“As of 2023, solar energy accounts for approximately 3% of the total global electricity generation, but this figure is expected to rise significantly as countries ramp up their renewable energy efforts.” — International Energy Agency (IEA)

Segmental Market Size

The solar power industry is undergoing a major transformation. It is now a market with a future. The residential solar power industry plays a crucial role in the solar power industry, which is experiencing a boom because of the growing demand for renewable energy. Rising electricity prices, a growing awareness of the environment, and supportive government policies such as tax incentives and net metering are driving the demand for solar power. These factors are encouraging consumers to invest in solar technology to reduce their energy bills and their carbon footprint. The current state of the residential solar power industry is one of mass deployment, with notable leaders such as Sunrun and Tesla installing residential solar power systems all over the United States. These systems are generally installed on rooftops and are used to generate electricity for the home. Other applications include community solar projects, where several households share the same installation. This trend is set to continue as government initiatives such as the Clean Energy Standard and the Green Deal support the growth of the industry. Advances in photovoltaic technology and energy storage solutions will also contribute to the growth of the industry.

Future Outlook

The report states that the solar panel market is set to grow at a CAGR of 12.63% between 2022 and 2030. The growth will be driven by a combination of technological advancements, favorable government policies, and the growing demand for clean energy. The report further predicts that by 2030, solar energy will account for approximately 20% of the world’s electricity production. The report also predicts that by 2022, the cost of solar cells and panels will decrease by an additional 20-25%. The report states that the market growth will be driven by the growing demand for clean energy, as many countries have already introduced ambitious renewable energy policies. Also, the emergence of energy storage solutions, such as batteries, will complement the growth of solar panel systems, as they will increase energy independence and security. Also, the increasing use of smart technology and the penetration of solar panels in the residential and commercial sectors will boost the penetration of solar panels in the market. As consumers and businesses are increasingly adopting sustainable practices, the solar panel market is expected to become a major growth driver in the years to come.