Since solar panels are the most sustainable forms of energy production, many private and public organizations are focused on promoting their use. Owing to this, market players also offer different types of solar panels for various purposes, such as monocrystalline solar panels, polycrystalline solar panels, thin-film solar panels, and other solar panels.
Market Forecast and Drivers
According to OMR Research, the global solar panel market is projected to grow at a CAGR of 12.2% during the forecast period (2023-2029). The rising demand for green energy solutions, as well as the global drop in solar panel prices, are driving market expansion. According to the Environmental Impact Assessment (EIA), there will be a 48% increase in energy consumption by 2040 owing to massive industrialization and the expansion of many energy-dependent industries. Moreover, according to the IEA (International Energy Agency), solar PV dominates the renewable energy market, and the installed solar power capacity is expected to exceed coal by 2027, making it the world's largest.
Other factors that contribute to market expansion include public knowledge of low-cost renewable energy sources as well as government incentives, programs, and subsidies for household solar panels. Various government efforts, such as feed-in-tariff (FIT) programs, are driving market expansion by increasing the installation of solar panels in commercial and residential areas. Besides, governments are offering tax reduction policies to individuals who utilize solar energy. For instance, the US government offers a Federal Solar Tax Credit to its citizens. The federal residential solar energy credit is a federal income tax credit that can be claimed for a percentage of the cost of a solar PV system that the taxpayer pays for. Solar PV systems installed between 2020 and 2021 qualify for a 26% tax credit. Congress extended the ITC in August 2022, increasing it to 30% for installations between 2022 and 2032. (Solar systems installed on or before December 31, 2019, qualify for a 30% tax credit as well.) It will fall to 26% in 2033 and 22% in 2034 for systems deployed in those years.
Recent Developments
The key companies in the solar panel market include ALLPOWERS Industrial International, Ltd., Canadian Solar, Inc., China Sunergy Co., Ltd. (CSUN Solar), Hanwha SolarOne Co., Ltd., JA Solar Co., Ltd., JinkoSolar Holding Co., Ltd., Juwi Holding AG, Kyocera Corp., Motech Industries, Inc., Neo Solar Power Energy Corp., ReneSola Zhejiang, Ltd., Risen Energy Co., Ltd., and others. These companies are following various mergers, collaborations, and investment activities to proliferate the market’s growth. Some of the recent developments in the market include-
• In February 2023, Gambian President Adama Barrow established the foundation for the construction of a solar PV facility in Jambur, West Coast Region. The Gambia National Water and Electric Co. (NAWEC) is developing the 23 MW solar plant, which incorporates an 8 MW battery storage system. The solar power station is being built as part of the Gambia Electricity Restoration and Modernization Project (GERMP). The World Bank and the European Investment Bank (EIB) co-financed the facility with $27,800,225.
• In January 2022, Reliance Industries (RIL) agreed to invest INR 5 lakh crore (about $60.4 billion) in Gujarat, India, over the next 10-15 years to build 100 GW of renewable energy power plants and a green hydrogen eco-system. Solar power plants on a utility scale are examples of renewable energy power plants. RIL plans to invest INR 60,000 crore ($7.2 billion) in the establishment of manufacturing facilities for solar PV modules, electrolyzers, batteries, and fuel cells for prospective renewable projects.
• In August 2022, First Solar, Inc. committed $1.2 billion to scaling up the manufacture of sustainably created photovoltaic (PV) solar modules that are produced in the US, directly assisting the nation's move toward a decarbonized future and advancing the battle against climate change. By 2025, the investment is expected to increase the company's capacity to produce solar modules built in the US for the US solar market to more than 10 GW DC.