Utility Scale Solar Market Size, Share, Opportunities, And Trends By Technology (Solar Photovoltaic (PV), Concentrating Solar Thermal Power (CSP)), By Panel Type (Monocrystalline, Polycrystalline, Thin Film), By Power (1 to 10 MW, 10 to 20 MW, Above 20 MW), And By Geography - Forecasts From 2023 To 2028

The utility-scale solar market is estimated to grow at a CAGR of 11.33% during the forecast period.

A utility-scale solar facility refers to an installation that produces solar energy and contributes it directly to the electrical grid, thereby providing a utility with a source of renewable power. The utility-scale solar market is categorized by two main technologies such as solar photovoltaic and concentrating solar thermal power. The utility-scale solar industry is expected to grow owing to the rising adoption of utility-scale solar systems, their cost-effective nature followed by favourable government initiatives and increasing investments.

Cost-Effective nature of solar energy systems bolsters the utility-scale solar market.

Solar energy costs are declining due to advancements in technology, economies of scale, and increased efficiency in manufacturing processes, leading to more affordable and competitive solar panels and systems. This trend has made solar energy more cost-effective and a more economically viable option for utility companies and large-scale power producers. Lower costs mean higher potential returns on investment for utility-scale solar projects, making them more attractive for investors and developers. This cost-effectiveness also encourages governments and corporations to support the adoption of solar energy, thereby further propelling the growth of the utility-scale solar market. For instance, According to the International Renewable Energy Agency, in 2021, the costs associated with solar photovoltaic (PV) experienced a 13% decrease compared to the previous year, 2020.

Rise in demand for utility-scale solar drives the market size.

Utility-scale solar is primarily used to generate large amounts of electricity that can be fed into the grid, serving the power needs of many households and businesses. The electricity is produced at a lower cost per unit due to more efficient installation, maintenance procedures, and lower equipment costs per unit of energy produced. The falling cost of solar technologies and the growing global emphasis on reducing greenhouse gas emissions has made utility-scale solar projects more viable thereby augmenting the overall market growth. According to the International Energy Agency, in 2021, the addition of utility-scale solar capacity in China saw an increase of 4.1%, reaching a total of 27.7 (GW), compared to 2020.

Significant capital inflow drives utility-scale solar market growth.

The capital inflow into this sector accelerates the deployment of new utility-scale solar projects, contributing directly to market expansion. Investments often fund necessary components such as procurement of solar panels, construction of solar farms, and setup of grid connectivity, which are all crucial for the development and operation of utility-scale solar projects. Furthermore, increased investment also encourages advancements in solar technology, leading to improved efficiency and reduced costs, which in turn makes utility-scale solar energy more competitive with other power sources. For instance, in August 2022, Enfinity Global Inc. obtained long-term financing amounting to $242 million for three utility-scale solar photovoltaic (PV) plants in Japan. These recently completed plants have a combined capacity of 70 MW.

North America is projected to dominate the utility-scale solar market.

North America is expected to be the market leader attributable to the region's expanding sophisticated infrastructure and noticeable efforts to increase the deployment of utility-scale solar projects. According to the Solar Energy Industries Association, in 2022, the cumulative capacity of utility-scale solar installations in the U.S. reached 91,776.54 (MW), marking a significant increase of 16% compared to 2021. Additionally, significant capital inflow, either from private investors or government-backed funds, is consistently boosting the development and expansion of utility-scale solar projects. For instance, in 2022, Enel North America constructed new utility-scale wind, solar, and storage facilities across the United States and Canada, contributing an additional capacity of 1.98 Gigawatts (GW).

Land and environmental issues may restrain the utility-scale solar market growth.

Utility-scale solar projects necessitate the acquisition of substantial tracts of land, a requirement that can pose a significant challenge in regions where such expansive space is scarce or unavailable. Additionally, the disposal of solar panels at the end of their lifecycle introduces another set of environmental challenges regarding waste management and recycling. Given these factors, there's a possibility that stakeholders could be more inclined to consider space-efficient alternatives, such as rooftop solar technology or floating solar photovoltaic systems. As a result, the potential shift towards these less land-intensive technologies could impose a restraint on the expansion of the utility-scale solar market. For instance, in July 2022, the Indian Government initiated a floating solar power plant at NTPC-Kayamkulam.

Key Developments

• January 2023: Enfinity Global Inc. (EG) announced the acquisition of a 400-megawatt (MW) operational utility-scale solar portfolio, a significant step forward in the company's expansion efforts within the United States. This acquisition marks a milestone moment for Enfinity Global, demonstrating its continued commitment to increasing its footprint in the US renewable energy sector.
• July 2022: Renewco Power acquired a substantial pipeline of early-stage utility-scale solar projects from Beaufort Rosemar, which includes a 1.5 Gigawatt (GW) solar project pipeline along with 500 Megawatts (MW) of battery storage projects. This strategic move signifies Renewco's commitment to expanding its renewable energy portfolio and establishing a stronger presence in the U.S. market.
• December 2021: Shell New Energies US LLC, a subsidiary of Shell, agreed to acquire 100% of Savion LLC, a prominent utility-scale solar and energy storage developer in the United States. This acquisition marks a significant step for Shell in its ambition to broaden its global solar portfolio, reinforcing its commitment to renewable energy and further strengthening its presence in the U.S. renewable energy sector.

Company Products

• Utility Scale: First Solar offers a Utility Scale solution that is perfectly tailored for large-scale utility applications, which demand the utmost performance and longevity. Utilizing First Solar's thin-film PV technology, this solution generates highly energy-efficient modules with an industry-leading degradation rate, temperature coefficient, and spectral and shading response. In addition to these performance benefits, First Solar's Utility Scale solution also boasts the smallest environmental footprint in the industry.

Segmentation

• By Technology
  • Solar Photovoltaic (PV)
  • Concentrating Solar Thermal Power (CSP)
• By Panel Type
  • Monocrystalline
  • Polycrystalline
  • Thin Film
• By Power
  • 1 to 10 MW
  • 10 to 20 MW
  • Above 20 MW
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Other

1. INTRODUCTION

1.1. Energy Transition Status

1.2. Sector-wise Analysis: Examination of Key Industries and Their Implications

1.2.1. Transport

1.2.2. Buildings

1.2.3. Industry

1.2.4. Power

1.3. Socio-Economic Impact of Energy Transition

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. ENERGY AND POWER INDUSTRY OVERVIEW

4.1. Introduction

4.2. Energy Industry Overview

4.2.1. Global Energy Production (in EJ)

4.2.1.1. Americas

4.2.1.2. Europe

4.2.1.3. Middle East & Africa

4.2.1.4. Asia Pacific

4.2.2. Energy Mix, By Fuel

4.3. Power Industry Overview

4.3.1. Global Power Generation (in TWh)

4.3.2. Power Mix

4.3.2.1. Renewable

4.3.2.2. Non-Renewable

4.4. Russian-Ukraine War Impact

4.4.1. Supply Shocks

4.4.2. Rising Energy Prices

4.4.3. Repercussions On Economic Policy

5. MARKET DYNAMICS

5.1. Market Drivers

5.2. Market Restraints

5.3. CO2 Emissions

5.3.1. Coal

5.3.2. Oil

5.3.3. Natural Gas

5.4. Clean Energy Investment

5.4.1. Electricity Generation

5.4.2. Energy Infrastructure

5.4.3. End-Use

5.5. Recommendations

6. GOVERNMENT REGULATIONS/POLICIES

6.1. Introduction

6.1. Net Zero Commitments

6.2. Remuneration Schemes

7. UTILITY-SCALE SOLAR MARKET, BY TECHNOLOGY

7.1. Introduction

7.2. Solar Photovoltaic (PV)

7.3. Concentrating Solar Thermal Power (CSP)

8. UTILITY-SCALE SOLAR MARKET, BY PANEL TYPE

8.1. Introduction

8.2. Monocrystalline

8.3. Polycrystalline

8.4. Thin Film

9. UTILITY-SCALE SOLAR MARKET, BY POWER

9.1. Introduction

9.2. 1 to 10 MW

9.3. 10 to 20 MW

9.4. Above 20 MW

10. UTILITY-SCALE SOLAR MARKET, BY GEOGRAPHY

10.1. Introduction

10.2. North America

10.2.1. USA

10.2.2. Canada

10.2.3. Mexico

10.3. South America

10.3.1.  Brazil

10.3.2. Argentina

10.3.3. Others

10.4. Europe

10.4.1. Germany

10.4.2. UK

10.4.3. France

10.4.4. Spain

10.4.5. Others

10.5. Middle East and Africa

10.5.1. Saudi Arabia

10.5.2. UAE

10.5.3. Others

10.6. Asia Pacific

10.6.1. China

10.6.2. Japan

10.6.3. South Korea

10.6.4. India

10.6.5. Australia

10.6.6. Others

11. RECENT DEVELOPMENT AND INVESTMENTS

12. COMPETITIVE ENVIRONMENT AND ANALYSIS

12.1. Major Players and Strategy Analysis

12.2. Market Share Analysis

12.3. Vendor Competitiveness Matrix

13. COMPANY PROFILES

13.1. First Solar

13.2. Trina Solar Co., Ltd

13.3. Eaton Corporation

13.4. Jinko Solar

13.5. Azure Power Global Limited

13.6. Canadian Solar Inc.

13.7. LONGi

First Solar

Trina Solar Co., Ltd

Eaton Corporation

Jinko Solar

Azure Power Global Limited

Canadian Solar Inc.

LONGi