Global Solar Energy Market - Forecasts from 2023 to 2028

The global solar energy market is expected to grow at a CAGR of 11.93% from an initial value of US$89.968 billion in 2021 and is estimated to reach a market size of US$198.011 billion in 2028.

Solar energy is an abundant renewable energy that is sourced from sunlight and then transformed into electrical energy. It can capture this energy for a range of purposes, such as electricity generation, interior lighting, and water heating for residential, commercial, and industrial use.

Photovoltaics, solar heating and cooling, and concentrating solar power are the three primary methods for utilizing solar energy. To operate anything from portable electronics like calculators and road signs up to houses and big corporate enterprises, photovoltaics directly convert sunlight into energy using an electronic process. Both solar heating and cooling (SHC) and concentrating solar power (CSP) applications use the heat produced by the sun to operate conventional electricity-generating turbines in the scenario of CSP power plants or offer space or heating water in the situation of SHC systems. Both of these methods can also store the energy they produce for distribution after the sun sets, using cutting-edge solar and storage technologies.

For consumers and companies to have fair access to clean energy systems like solar, all of these applications rely on supportive policy frameworks at the municipal, state, and federal levels. For instance, as part of the Paris Agreement commitments, India's government set an ambitious target of achieving 175 GW of renewable energy capacity by 2022. In order to improve the quality of the air in its cities and lessen the reliance on coal in the rapidly expanding economy, the government declared in July 2019 that it intended to raise the renewable energy target to 500 GW by 2030.

The global solar energy market is driven by favorable government policies.

In order to power its activities, Cainiao Network, the logistics division of Alibaba Group, began to use distributed solar power in March 2022. This power was produced by rooftop solar panels placed in the company's bonded warehouses in China. On the rooftop of a 100,000-square-meter warehouse, the company had installed PV power production systems that can generate enough electricity to power more than 3,000 homes annually and have a storage capacity of 7.862 MW. The warehouse operations at Cainiao will be powered by the solar power system, and any extra energy will be sent to the grid. In numerous countries including China, the US, and the European Union to name a few, schemes like FiT, and capital subsidies are driving solar installation. For instance, in May 2019, China's National Development and Reform Commission (NDRC) declared solar FIT payments for large-scale projects. Commercial and industrial solar photovoltaic projects originated for individual consumption and extra power sent back into the grid is subject to a FiT of RMB 0.10/kWh.

Additionally, countries like India have identified the potential of renewable energy, such as solar and wind, in decarbonizing the economy and meeting targets as per the Paris Agreement, and the Government of India has been increasingly bent towards increasing the share of renewables in the country's energy mix. The government aimed at 25,750 MW of new power generation capacity from solar plants under the ambitious Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM) scheme by 2022, with more than INR 32,000 crore in overall financials.

Key Developments

• In order to power its activities, Cainiao Network, the logistics division of Alibaba Group, began to use distributed solar power in March 2022. This power was produced by rooftop solar panels placed in the company's bonded warehouses in China. On the rooftop of a 100,000-square-meter warehouse, the company had installed PV power production systems that can generate enough electricity to power more than 3,000 homes annually and have a storage capacity of 7.862 MW. The warehouse operations at Cainiao will be powered by the solar power system, and any extra energy will be sent to the grid.
• In 2021, in order to manufacture the CdTe solar panels, Toledo Solar entered the market. The manufactured solar panels by this company will aim for residential rooftops. Thus, new entrants in the market are expected to further drive the market growth. Accordingly, as per the Solar Energy Industries Association, cumulative residential solar installation in the US reached 27,402.9 in 2022.

North America accounts for major shares of the global solar energy market.

By geography, the tank level monitoring market has been segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

North America and Europe are projected to offer good revenue opportunities for solar companies. The U.S. holds the major market share in the North American solar energy market owing to the high spending on the development of renewable energy and the presence of major players in the country. Canada is also expected to grow at a steady pace due to the surging development of solar infrastructure and favorable government initiatives. The country is expected to show considerable growth due to the growing solar installation capacity coupled with favorable investments and government initiatives to boost solar energy generation. According to the Solar Energy Industry Association, in 2021, solar installation in the United States stood at 23.6 GW representing 19% of 2020's installation capacity.

Moreover, government initiatives to provide electricity produced through solar energy are also expected to provide growth opportunities to this market. For instance, the Biden Administration, in September 2022, announced the full operation ability of the "Blythe Solar Power Project", in California. The project would provide electricity produced through solar energy to more than 1,45,000 homes in California.

Market Segmentation

By Product Type

• Silicon
• Thin Sheet
• Poly-crystalline
• Mono Crystalline

By Area

• Rural Areas
• Urban Areas

By Technology

• PV
• CSP
• Solar Heating and Cooling

By Application

• Residential
• Commercial

By Geography

• North America
  • USA
  • Canada
  • Mexico

• South America
  • Chile
  • Brazil
  • Argentina
  • Peru
  • Others

• Europe
  • Germany
  • UK
  • France
  • Others

• Middle East and Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Others

• Asia Pacific
  • China
  • India
  • Thailand
  • Japan
  • South Korea
  • Indonesia
  • Taiwan
  • Others