Global Solar Energy Market Size, Share, Opportunities, And Trends 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), And By Geography – Forecasts From 2024 To 2029

The global solar energy market is anticipated to reach a market size worth US$355.022 billion by 2029, growing at a compound annual growth rate of 20.16%. The market is valued at US$98.151 billion in 2022.

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.

What are the solar energy market growth drivers?

• Rising government initiatives

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.

• Increased demand for Solar Photovoltaic (PV) 

Solar PV systems use semiconductor-based solar panels usually silicon to directly convert sunlight into electricity. Direct current (DC) electricity flows from the solar cells when sunlight strikes them exciting electrons. In homes businesses and the electrical grid, this DC electricity is transformed into alternating current (AC) via an inverter. For the next five years, solar photovoltaic (PV) is predicted to add significantly more yearly capacity to renewable energy sources than wind and hydropower combined. The IEA reports that in 2022 solar PV generation climbed by 270 TWh or 26 percent to reach nearly 1300 TWh. This surpassed wind power for the first time in 2022 and showed the greatest absolute generation growth of all renewable technologies.

Moreover, population expansion urbanization and the electrification of numerous industries including transportation are all contributing factors to the ongoing rise in the world's electricity consumption. In areas with sparse or unstable grid infrastructure solar photovoltaic systems provide a decentralized and scalable way to meet this increasing energy demand.

• Growing demand from the industrial sector

It is anticipated that the rising industrial demand for electricity and the growing feasibility of smaller-scale solar energy system installations will increase demand even more. Due to the rising affordability of solar energy systems for the residential sector, the residential end-use market is anticipated to grow significantly over the forecast period. Since investments in technologies to boost production efficiency have been made the cost of these systems has decreased over the past ten years. Product adoption has also increased as a result of incentive programs and policies implemented by numerous governments. It is anticipated that this will lead to an increase in market demand. 

What are the emerging markets for solar energy globally?

• Asia Pacific is witnessing exponential growth during the forecast period

The adoption of solar energy is being encouraged by the implementation of supportive policies and ambitious targets for renewable energy by several Asia-Pacific nations including China India and Japan.

Feed-in tariffs renewable portfolio standards and solar installation subsidies are a few examples of these policies A sustainable and scalable answer to this expanding energy need is provided by solar energy.

Consequently, the region has a robust market opportunity for the implementation of solar energy. Furthermore, ambitious large-scale solar energy projects have been initiated by several Asia-Pacific countries. For example with its vast solar farms and parks China has led the world in utility-scale solar installations. The region now has more cumulative solar capacity thanks to these large-scale projects and this has made it a dominant force in the global solar market.

Recent developments in the solar energy market

• In February 2024, the largest Battery Energy Storage System (BESS) in India was successfully put into service by the Solar Energy Corporation of India Limited (SECI) which operates under the Ministry of New and Renewable Energy. BESSes use solar energy to store energy. The solar photovoltaic (PV) plant which has an installed capacity of 152. 325 megawatt-hour (MWh) and a dispatchable capacity of 100MW AC (155. 02 MW peak DC) is housed in Rajnandgaon Chhattisgarh. The 40 megawatts (MW) / 120MWh BESS is situated inside this facility. The energy would be purchased by the state of Chhattisgarh which would help the state meet its renewable purchase obligations as well as its peak energy demand using green electrons.
• In October 2023, a tender was released by the Solar Energy Corporation of India (SECI) to develop approximately one gigawatt of grid-connected solar projects that are interstate transmission. A 25-year power purchase agreement between developers and SECI was expected to be signed for the solar projects that would be developed. It is anticipated that the start of these gigawatt-scale solar tenders and the advancement of projects will soon create a surge in the solar energy market.

Solar Energy market is analyzed into the following segments:

• 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

Key questions answered in this report:

• What is the current market size of the solar energy sector?
• What are the key trends driving the solar energy market growth?
• What are the main challenges faced by the solar energy industry?
• Who are the major players in the solar energy market?
• Which regions are leading the solar energy market? 
• What are the revenue forecasts for solar energy market over the next five years?
• What are the regulatory and policy frameworks impacting the solar energy market?
• What are the most significant technological advancements in solar energy industry?
• What are the environmental impacts of solar energy production/ industry?
• How does the government support the solar energy market?