PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1679302
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1679302
According to Stratistics MRC, the Global Solar Bio-gas Hybrid Power System Market is accounted for $3.19 billion in 2024 and is expected to reach $6.69 billion by 2030 growing at a CAGR of 13.1% during the forecast period. A Solar Bio-gas Hybrid Power System is a renewable and sustainable energy source that generates power by combining sun and biogas. This system uses solar panels to generate energy and a biogas generator to create power from biogas, which is made from organic waste. By using biogas power at night or during cloudy conditions and solar power during the day, the hybrid system maximises energy output. By guaranteeing a dependable, environmentally responsible, and effective energy source, it lessens reliance on traditional fossil fuels and promotes waste management and environmental sustainability.
According to international energy agency, majority of the electricity demand in the year 2019 came from industrial sectors electricity demand stood at 26.6% and 21.2%, respectively.
Government incentives and subsidies
Programs for government subsidies and incentives lower the high initial installation costs, increasing the technology's accessibility for both enterprises and consumers. Direct financial assistance, tax exemptions, or feed-in tariffs-which set a price for power produced from renewable resources-can all be considered forms of subsidies. These incentives promote broader use of hybrid power systems and boost market expansion by reducing the cost barrier to entry. Additionally, by demonstrating the government's commitment to renewable energy, this assistance encourages more investment and innovation in the field.
Land and resource availability
Large areas of land are needed for these systems in order to place solar panels and biogas facilities. Developments in agriculture, industry, and housing frequently create rivalry for available land. Furthermore, the generation of biogas necessitates the availability of organic waste materials, which might not be easily accessible in some areas. Project viability may be hampered by a lack of suitable land and waste resources, which might raise operating expenses. This imbalance can slow the growth of hybrid power systems in regions with constrained land and resource access.
Growing focus on circular economy
Waste and dependency on landfills are decreased by the efficient use of waste biomass for biogas generation brought about by the increased emphasis on circular economy concepts. The method of producing biogas closes the circle in agricultural cycles by producing biofertilizer, a desirable byproduct. This strategy promotes resource efficiency and reduces environmental impact, which is consistent with the principles of the circular economy. The demand for these hybrid systems is being driven by consumers' and companies' growing interest in sustainable energy solutions. Market expansion is further accelerated by government regulations and subsidies that encourage renewable energy.
Climate and weather variability
Sunlight is essential for solar power generation, yet erratic weather conditions like cloud cover or seasonal variations can lower energy production. In turn, humidity and temperature variations affect the generation of bio-gas, which affects the stability of the system. System outages can result from severe weather events like floods or storms damaging infrastructure. Market confidence may be impacted by these interruptions as they may raise questions about the energy supply. Consequently, erratic climatic patterns impede market growth and long-term investments.
Covid-19 Impact
The COVID-19 pandemic significantly impacted the Solar Bio-gas Hybrid Power System market, causing disruptions in manufacturing and supply chains. Lockdowns and restrictions slowed down project installations and delayed research and development activities. However, as demand for sustainable energy solutions increased post-pandemic, there was a gradual recovery. Governments' focus on clean energy and green recovery initiatives bolstered market growth, driving investments and innovations in hybrid power systems that combine solar and bio-gas technologies for more efficient energy production.
The bio-gas generator segment is expected to be the largest during the forecast period
The bio-gas generator segment is expected to account for the largest market share during the forecast period, due to the intermittent nature of solar power. This continuous generation enhances the overall stability and efficiency of the hybrid system. By utilizing organic waste for bio-gas production, these generators offer a sustainable waste management solution. This process reduces reliance on fossil fuels and lowers greenhouse gas emissions. The integration of bio-gas generators strengthens the economic viability of the hybrid system, as bio-gas can be produced locally, reducing energy costs and dependence on external fuel sources.
The agricultural sector segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the agricultural sector segment is predicted to witness the highest growth rate, due to the agricultural waste, such as crop residues and livestock manure, provides feedstock for biogas production, fuelling the hybrid system. This reduces waste management issues and creates a valuable energy source. Simultaneously, solar energy complements biogas generation, ensuring a consistent power supply for agricultural operations. This integrated approach enhances energy independence for farmers and promotes sustainable agriculture. Additionally, government incentives and growing environmental awareness further drive the adoption of these systems within the agricultural sector.
During the forecast period, the South America region is expected to hold the largest market share due to the region's abundant solar resources and significant agricultural activity. This market offers a sustainable solution to energy needs, particularly in rural areas with limited grid access. The technology combines solar photovoltaic panels with biogas digesters, utilizing agricultural waste for biogas production. This hybrid approach ensures a more reliable energy supply compared to relying solely on solar or biogas. The market is driven by the need for clean energy, reduced reliance on fossil fuels, and improved waste management practices. As awareness of the benefits increases and costs decrease, the adoption of these systems is expected to rise across South America.
Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR, owing to the increasing energy demands and abundant agricultural resources. Supportive government policies and rising environmental concerns further accelerate market expansion. Technological advancements and decreasing costs make these systems more accessible. Countries like India and China are leading the market with significant investments. The versatility of these systems, suitable for on-grid and off-grid applications, drives their adoption. This trend contributes to sustainable development and energy security in the region.
Key players in the market
Some of the key players profiled in the Solar Bio-gas Hybrid Power System Market include Adani Green Energy Limited, Sterling & Wilson, ReNew Power, JSW Energy, Greenko Group, Tata Power Renewable Energy Limited, NextEra Energy, First Solar, Enphase Energy, WELTEC BIOPOWER, PLANET BIOENERGY, ABJ Inc. and Husk Power Systems.
In August 2024, ReNew announced a contract for the sale of green attributes amounting to 437.6 MW with Microsoft. The contract will generate over one million units of green electricity annually and includes a commitment of approximately US $15 million towards community fund initiatives focused on environmental justice.
In June 2023, ReNew Power entered a partnership with WattPower to supply 1.2 GW of string inverters. This collaboration is valued at around INR 200 crores and is aimed at bolstering India's transition to clean energy while supporting ReNew's target of achieving 5 GW of solar projects.
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.