NEW YORK, July 29, 2024 /PRNewswire/ — The global grid connected PV systems market size is estimated to grow by USD 151.1 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 12.13% during the forecast period. Advantages associated with grid-connected PV systems is driving market growth, with a trend towards increasing adoption of microgrids. However, intermittency in solar power generation poses a challenge. Key market players include ABB, Canadian Solar Inc., Delta Electronics Inc., Emeren Group Ltd., First Solar Inc., Flin Technologies Pvt. Ltd., Hanwha Corp., Huawei Technologies Co. Ltd., JA Solar Technology Co. Ltd., JinkoSolar Holding Co. Ltd., KACO new energy, Kyocera Corp., LG Electronics Inc., Luminous Power Technologies Pvt. Ltd., Lumos Global BV, Panasonic Holdings Corp., Shenzhen Kstar Science and Technology Co. Ltd., SMA Solar Technology AG, SolarEdge Technologies Inc., and Trina Solar Co. Ltd..
Technavio has announced its latest market research report titled Global grid connected PV systems market 2024-2028
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Grid Connected PV Systems Market Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018 – 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 12.13% |
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Market growth 2024-2028 |
USD 151.1 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023 (%) |
10.95 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 60% |
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Key countries |
China, Japan, India, US, Germany, and UK |
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Key companies profiled |
ABB, Canadian Solar Inc., Delta Electronics Inc., Emeren Group Ltd., First Solar Inc., Flin Technologies Pvt. Ltd., Hanwha Corp., Huawei Technologies Co. Ltd., JA Solar Technology Co. Ltd., JinkoSolar Holding Co. Ltd., KACO new energy, Kyocera Corp., LG Electronics Inc., Luminous Power Technologies Pvt. Ltd., Lumos Global BV, Panasonic Holdings Corp., Shenzhen Kstar Science and Technology Co. Ltd., SMA Solar Technology AG, SolarEdge Technologies Inc., and Trina Solar Co. Ltd. |
Market Driver
Microgrids are small-scale power systems that operate independently or in collaboration with the main power grid. They can connect and disconnect from the main grid, allowing them to function in grid-connected and island modes. Microgrids are particularly useful in areas with unstable power grids or limited grid access, such as remote villages. These systems can generate power from renewable sources like solar PV and wind power. With the increasing frequency of power outages due to natural disasters, governments worldwide are promoting microgrids as a reliable alternative. Their ability to operate autonomously or parallelly with the conventional grid, as well as their cost-effectiveness in reaching remote locations, make microgrids an attractive solution. The growing adoption of renewable energy sources and the need for grid resilience are key factors driving the growth of the grid-connected PV systems market.
The Grid Connected PV Systems market is witnessing significant trends in the Photovoltaic (PV) industry. Integrated photovoltaic systems are gaining popularity, combining solar panels with storage technologies to provide continuous power. Grid parity, where renewable energies become cost-effective compared to fossil fuels, is driving growth. System dynamics models and Levelized Energy Cost (LCOE) analysis help optimize PVESS residential industry performance. Distributed Energy Resources (DERs) like solar PV systems and electricity storage devices are transforming power grids, enabling microgrids for peak call relief and power outage resilience. Renewable sources, including solar PV modules, are replacing traditional power plants. Thin film and crystalline silicon technologies lead the grid connected market, with inverters crucial for grid connection equipment. Governments support microgrid projects, aiming for 10,000 renewable microgrids by 2030. Centralized and decentralized systems serve residential, commercial, and utility sectors. Grid structures evolve to accommodate renewable sources, addressing power outages and natural disasters.
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Market Challenges
The solar photovoltaic (PV) market for grid-connected systems has seen significant growth due to declining solar technology prices, leading to increased solar power installations. However, the intermittent nature of solar power remains a major challenge, as solar PV systems generate power effectively for only approximately 12 hours each day. Factors such as panel efficiency, degree of shade, and solar irradiation can impact power output. During non-peak production hours, a secondary power system, such as a battery, wind power, hybrid generator, or grid power, is necessary to provide power. Solar PV systems do not function during the night and are affected by cloudy and rainy weather. Regions above the Arctic Circle receive insufficient sunlight for solar PVs to be effective. With an average efficiency of approximately 15%, solar PV technology cannot yet match the consistency of fossil fuels. This intermittency poses a significant challenge for the growth of the global grid-connected PV systems market.
The Grid Connected PV Systems Market is experiencing significant growth as businesses and governments seek cost-effective, environmentally friendly electricity solutions. Solar PV systems, including thin film and crystalline silicon modules, are becoming increasingly popular for power plants and microgrid projects. However, challenges persist. Power outages, natural disasters, and the need for grid structures compatible with renewable energy sources require advanced grid connection equipment, such as inverters and power conditioning units. The utility section, including centralized and decentralized systems, must adapt to the integration of solar panels and energy storage devices like batteries. Recurrent Energy and other industry leaders are pushing technological improvements for 10,000 renewable microgrids, focusing on commercial rooftop systems, small residential units, and utility-scale projects. Governments are setting energy benchmarks for solar photovoltaic systems, driving innovation in the public grid and island networks.
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Segment Overview
This grid connected pv systems market report extensively covers market segmentation by
End-user
1.1 Non-residential
1.2 Residential
Geography
2.1 APAC
2.2 North America
2.3 Europe
2.4 South America
2.5 Middle East and Africa
1.1 Non-residential- The Grid Connected PV Systems market refers to solar power systems that generate electricity and feed it back into the power grid. These systems offer businesses significant energy cost savings and contribute to sustainability efforts. Key players in this market include Siemens, First Solar, and Trina Solar. The market is driven by government incentives and the increasing demand for renewable energy sources. Businesses can benefit from the reliable and cost-effective energy supply provided by these systems.
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South Africa’s solar energy market is experiencing rapid growth, driven by increasing demand for renewable energy solutions. The global residential solar PV systems market is also expanding, projected to reach significant heights by 2030. Factors such as declining costs of solar panels and government incentives are fueling this growth. South Africa’s sunny climate and abundant solar resources make it an ideal location for solar energy investments. The global residential solar PV systems market is expected to see robust adoption, driven by environmental awareness and advancements in solar technology.
Research Analysis
The Grid Connected PV Systems market refers to solar photovoltaic (PV) systems that generate electricity from solar panels and feed it into the public grid. These systems use power conditioning units and inverters to convert and regulate the electricity for transmission. Commercial rooftop systems and small residential units are significant applications, while the utility section caters to large-scale, utility-grade installations. Technological improvements, such as integrated power solutions and microgrids, enhance the efficiency and reliability of these systems. The utility scale industry is a major driver of the market, as countries shift towards renewable energy sources to reduce reliance on fossil fuels and power plants. Electricity storage devices are also becoming increasingly important for grid stability and cost-effective energy storage. The market offers cost-effective, environmentally friendly, and sustainable energy solutions, contributing to the transition towards a low-carbon economy. Grid structures, including renewable sources and island networks, continue to evolve to accommodate the growing integration of these systems into the electricity grid.
Market Research Overview
Grid-connected Photovoltaic (PV) systems are a crucial component of the renewable energy landscape, converting solar energy into usable electricity for the public grid. Solar panels, the primary building blocks of these systems, absorb sunlight and generate DC power. A power conditioning unit, which includes inverters, converts this DC power into AC power, synchronizing it with the grid’s frequency and voltage. Commercial rooftop systems and small residential units are common applications. The utility section manages the interaction between the system and the grid, ensuring grid parity and stable system dynamics. Technological improvements, such as integrated power solutions and energy storage, enhance system performance and reliability. The utility scale industry, renewable energy sources, and island networks benefit from grid-connected PV systems, reducing dependence on fossil fuels and electricity storage devices. Integrated photovoltaic systems and storage technologies, like batteries, enable charge and discharge functionality. The PV industry continues to evolve, with crystalline silicon and thin film solar PV modules leading the market. Grid structures, including microgrids, offer resilience against power outages caused by natural disasters or peak call situations. Governments worldwide invest in microgrid projects, aiming to deploy over 10,000 renewable microgrids, further expanding the grid-connected PV systems market. Grid connection equipment, including inverters, plays a vital role in this transition towards a more sustainable, cost-effective, and environmentally friendly energy future.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
End-user
Non-residential
Residential
Geography
APAC
North America
Europe
South America
Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
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SOURCE Technavio