Global Solar Market:
During the projected period of 2022–2027, the residential solar energy market is predicted to grow at a CAGR of more than 10.5 percent. Due to supply chain disruption and lockdowns in many countries between Q1 and Q2 2020, the COVID-19 epidemic hampered the expansion of solar energy, particularly residential installations. With the continuing epidemic, numerous nations experienced delays in the trade of solar modules and associated equipment, limiting industry development. However, factors such as the decreasing cost of solar photovoltaic (PV) systems as a result of technology advancements and worldwide competition, together with supporting government policies and incentives, are projected to boost the market studied throughout the projection period. However, a lack of financing alternatives, along with problems in integrating residential solar PV systems in places such as Africa, is projected to limit market expansion.
During the forecast period, the residential solar energy market is likely to be driven by technical developments and upgrades that lower the cost of modules. Several countries, including the United States, the United Kingdom, Germany, and India, have set lofty goals for increasing the amount of renewable energy in their energy mix. Governments in these countries have also intended to boost their renewable energy contribution in the future through the deployment of home solar PV systems. During the projection period, this is projected to present an opportunity for residential solar PV manufacturers and suppliers.
Over the projection period, Asia-Pacific is likely to lead the market, owing largely to rising demand for clean power from key emerging nations such as China, India, and ASEAN countries.
Solar Panel Market In India:
The Indian solar panel market is estimated to grow at a CAGR of more than 8% over the forecast period. The COVID-19 epidemic had no influence on the Indian solar energy business since solar PV installed capacity increased in 2020 compared to 2019. In 2020, the cumulative rise in solar energy generation quickened. The falling cost of solar power technology, the flexibility of these systems, and a cleaner manner of power generation are major drivers driving the Indian solar energy industry. However, the solar energy business is constrained by difficulties such as T&D losses (Transmission & Distribution) and unpredictability in power supply continuity.
Solar PVs are predicted to dominate the Indian solar energy market throughout the forecast period since they are much less expensive than other solar technologies and have a simpler installation method.
India has an abundance of solar irradiance and receives solar energy all year round, offering several potentials to harvest solar energy from the country's sunniest locations, including Rajasthan, Gujarat, and Andhra Pradesh. This feature, together with foreign investment and intensive R & D initiatives to develop technology, provides significant potential for the Indian solar energy industry to flourish.
Supportive government policies, notably those devised by the Ministry of New & Renewable Energy (MNRE) to boost renewable-based power generation, are also propelling the industry.
Residential Solar market Size:
In 2020, the worldwide solar power market was valued at USD 170.55 billion. COVID-19's worldwide effect has been unprecedented and startling, with solar power experiencing a negative demand shock across all areas as a result of the pandemic. The market is predicted to increase at a 6.9 percent CAGR from USD 184.03 billion in 2021 to USD 293.18 billion in 2028. The abrupt increase in CAGR is due to this market's demand and growth reverting to pre-pandemic levels after the pandemic has passed.
Solar energy is the cleanest and most abundant renewable energy source on the earth. Countries such as China, Germany, Spain, and the United States (U.S.) have some of the world's biggest solar resources. Solar energy may be harnessed in two ways: photovoltaic (PV) and concentrated solar power (CSP). Developed and emerging nations throughout the world are aggressively pushing solar as an alternative to traditional energy sources, hence favorably contributing to market growth.
Solar Energy Market Segmentation:
The increase in environmental pollutants and the availability of government incentives and tax refunds to install solar panels are driving the expansion of the solar energy sector. Furthermore, the reduction in water footprint connected with solar energy systems has increased their demand in the power generation sectors. The boom in rooftop installations has fueled demand for solar cells, which has led to an expansion in applications in the architectural industry. Furthermore, the demand for parabolic troughs and solar power towers in power generation is likely to drive up demand for concentrated solar power systems.
The worldwide solar energy market is divided into technology, application, component, marketing channel, and regional segments. The market is divided into two categories based on technology: photovoltaic systems and concentrated solar power systems (parabolic trough, solar power tower, Fresnel reflectors, and dish stirling). It is classified into monocrystalline, polycrystalline, cadmium telluride, amorphous silicon cells, and others based on the solar module. It is classified into three types according to its application: residential, commercial, and industrial. The market is divided into four segments based on end use: power production, lighting, heating, and charging. It is divided into North America (the United States, Canada, and Mexico); Europe (Germany, France, Italy, Spain, the United Kingdom, and the rest of Europe); Asia-Pacific (China, India, Japan, South Korea, Australia, and the rest of Asia-Pacific); and LAMEA (Brazil, South Africa, Israel).
Because of government tariffs and mergers and acquisitions of domestic producers, emerging economies such as China and Japan have considerably boosted their output of solar technology. Furthermore, North America and Europe have mostly concentrated on research to optimize solar potential. The Middle East and Africa have also gained traction as solar energy uses for electricity generation, agriculture, and architecture have increased.
Residential Solar Market Is Saturated Or Unsaturated?
Due to the high and ever-increasing penetration rate, the residential PV industry will ultimately experience a permanent decrease. While we haven't reached the stage where every viable roof is covered in PV (one of my life's tasks will be completed the day this happens), the majority of the rapid pay-back rooftops (i.e., unshaded north-facing owner-occupied) have already been taken up. This means that the existing housing stock will have a lower financial return, making it more difficult to sell residential systems. The solar business will need to execute upgrades, maintenance, and repairs, but this will not maintain the sector at its current levels.
According to statistics, residential penetration in South Australia and Queensland already surpasses 35% of appropriate residential building stock. Commercial solar has a penetration rate of only 3%. The benefit of this low commercial saturation rate is that you have the chance to choose the conditions of interaction. Customers that use solar power for their homes are cautious. Most potential consumers you meet with have previously been contacted fifteen times in shopping malls, hounded by tele-sales calls, or acquired a hard-to-change view about solar (such as we're never home during the day, so what's the point?). They will be confused and wary as a result of receiving contradicting information from dishonest sellers.
Potential commercial consumers, on the other hand, are a blank slate. Sure, you'll have to work hard to teach them, but at least you won't be hindered by preconceived notions. The advantage of being the first to contact the client is that you have the ability to mold their whole solar experience as well as determine the rules of interaction with the competitors. After all, they're likely to search around for rates quickly after you've done all the legwork teaching them. However, if you execute it well, when your customers search elsewhere for lower costs, all they will perceive is that other organizations are "risky," which they do not want to accept. They will notice that your price is fair and reasonable, ensuring a successful end.
The problem here is figuring out how to educate your consumer effectively, a) without taking up too much of your time and b) such that they believe what you're teaching them (which they will know has some inevitable bias). If you educate your consumers properly, you will be able to charge more than your competition and yet still get a lot of work.
Consumers appreciate solar power, but fewer are installing solar panels on their roofs, which opens up potential for enterprises establishing large-scale solar farms, as well as utilities and merchants providing customers with access to this electricity through solar-only contracts assisted by solar structure design software.
Residential solar system installation is stagnating, even as utility-scale solar growth accelerates. According to the report, rooftop solar installations have reached a saturation point in states that have pushed them through incentives and other laws, such as California, while markets in other states are proving tough to crack.