Solar energy is a source of energy that is both clean and renewable. Solar panels produce power by converting the sun's energy into electricity. Solar energy does not emit any toxic substances into the atmosphere, making it a clean energy source. It is an infinite source of energy since the sun produces enough energy to meet the world's energy needs. It cuts down on your monthly expenditure by dramatically lowering your electricity bills.
Impact of COVID-19 on the Market
The novel COVID-19 pandemic had a severe effect on various businesses, including the global solar energy market, which suffered from economic disruptions, supply chain disruptions, and manpower shortages, causing solar energy projects to be delayed. COVID-19 presented a number of obstacles, including a shortage of manpower as a result of social distancing measures, import-export restrictions resulting in a lack of equipment or parts, and an increase in expenditure.
The solar industry imports the majority of its parts and raw materials from China, but due China being the pandemic's epicenter, manufacturing facilities were shut down, and major ship container firms had ceased operations out of Chinese ports. Economic activity was halted, employee health concerns were raised, and supply chains were disrupted as a result of these disturbances. All these factors had a negative impact on the market amidst the pandemic.
Various government and corporate measures, such as stimulus packages to get the global economy back on track, are assisting society in recovering from its current state of chaos. Such initiatives are estimated to boost the growth of the market in the upcoming years.
Key Developments in the Industry
The key companies operating in the global solar energy market are adopting business tactics & several growth strategies such as partnerships, mergers & acquisitions, launches, and collaborations, to maintain a strong position in the overall market, which is subsequently assisting the market to grow across the world.
For instance, in June 2021, SJVN, a hydroelectric power producing business, announced that it has struck a deal with the New Delhi Municipal Council (NDMC) to sell 150 MW of solar power generated by SJVN projects under the Central Public Sector Undertaking (CPSU) Scheme.
In June 2021, SJVN, a hydroelectric power producing business, announced that it has signed a Memorandum of Understanding (MoU), with the National Institute of Wind Energy (NIWE), to develop various solar, wind (solar-wind) hybrid, and (solar-wind pus battery storage) hybrid energy projects.
In June 2021, Solex Energy Limited, a gujarat-based solar PV company, announced that it has signed a Memorandum of Understanding (MoU) with China's Jinchen Machinery to purchase 1.2 GW of solar module production equipment as part of its expansion plans.
Forecast Analysis of Solar Energy Market
Rising environmental concerns about dangerous greenhouse gas emissions that cause air pollution are expected to fuel demand for solar energy, which is a renewable and pollution-free source of electricity. For example, utilizing solar panels instead of fossil fuels to generate energy can significantly reduce carbon dioxide emissions, which cause global warming and climate change. Extreme weather conditions, such as increasing sea levels, glacier melting, and ecosystem changes, are all consequences of rising temperatures. Solar energy reduces demand for fossil fuels while also limiting greenhouse gas emissions, lowering carbon emissions.
Furthermore, using solar energy to generate power can help save water, which is one of the most valuable natural resources. Traditional power generation uses thousands of liters of water every day, however solar energy generation does not. All these advantages are anticipated to drive the growth of the solar energy market during the projected timeframe.
Solar panel installation is costly because it involves the cost of an inverter, solar batteries, wiring, installation, and solar panels. This factor is estimated to hamper the growth of the solar energy market over the forecast period.
These aforementioned factors are estimated to surge the growth of the solar energy market, throughout the analysis period. As per a newly published report by Research Dive, the global solar energy market is predicted to garner $888,311.4 million by 2028. Geographically, the European market for solar energy is estimated to dominate the global industry, owing to the increased use of renewable energy sources such as solar energy to generate electricity. The key players operating in the global industry include First Solar, Inc., Abengoa Solar, eSolar, S.A., Kyocera Solar, Inc., Acciona Energia, S.A., Canadian Solar Inc., Borrego Solar Systems, Inc., Evergreen Solar, Inc., BrightSource Energy, Inc., and Areva S.A.