Solar Power Panel Market

Solar Power Panel Market Size

Global Solar Power Panel Market size was recorded at USD 156.16 billion in 2023, which is estimated to be at USD 167.41 billion in 2024 and projected to reach USD 287.81 billion by 2031, growing at a CAGR of 8.05% from 2024 to 2031.

Growing adoption of bifacial solar panels is fostering market growth. In the scope of work, the report includes services offered by companies such as Jinko Solar, JA SOLAR Technology Co.,Ltd., Trinasolar, LONGi, First Solar, Energizer, Tesla, Hanwha Qcells, Canadian Solar, RISEN ENERGY CO., LTD., and others.

The global focus on achieving green energy targets is significantly driving investments in the solar industry. Governments and international organizations are increasingly committed to reducing carbon emissions and mitigating climate change, leading to ambitious renewable energy targets. This has spurred substantial financial investments in solar energy projects, as solar power is recognized as one of the most viable and scalable sources of clean energy.

Policies such as tax incentives, subsidies, and renewable energy credits are being implemented to promote both private and public sector investments in solar infrastructure. Additionally, financial institutions are providing green financing options to support large-scale solar projects.

• For instance, in Q1 2024, according to Solar Energy Industries Association, solar energy comprised 75% of new US electricity-generating capacity. From 2024-2029, over 250 GWdc are likely to be installed, averaging 40 GWdc annually. Despite demonstrating the industry's pivotal role in the energy transition, there is a deceleration in its growth, with a projected annual increase of 3%. The increased investment is expected to reduce costs, improve efficiency, and expand the adoption of solar energy worldwide, making it a pivotal component of global energy strategies.

Solar power panels, also known as photovoltaic (PV) panels, are devices that convert sunlight directly into electricity through the photovoltaic effect. These panels are composed of multiple solar cells made from semiconductor materials, typically silicon, which absorb photons from sunlight and release electrons, generating an electric current.

There are several types of solar power panels, including monocrystalline, polycrystalline, and thin-film panels, each with distinct efficiencies and applications. Monocrystalline panels, which are made from single-crystal silicon, offer high efficiency and durability, making them ideal for residential and commercial installations, particularly in limited space environments.

Polycrystalline panels, composed of multiple silicon crystals, are less expensive but slightly less efficient. Thin-film panels, made from materials such as cadmium telluride or amorphous silicon, are flexible and lightweight, specifically suitable for large-scale and unconventional applications.

Solar power panels are connected to the grid (grid-tied systems) or used in off-grid systems with battery storage to provide electricity in remote areas. Their applications include small-scale residential rooftops, large-scale solar farms, powering homes, businesses, and industrial operations, contributing significantly to the global transition toward renewable energy.

Analyst’s Review

The solar power panel market is experiencing robust growth due to strategic initiatives and innovations by key industry players. Companies are focusing on expanding their production capacities, enhancing technological capabilities, and entering new markets to capitalize on the rising demand for renewable energy.

Strategies such as vertical integration, where firms control multiple stages of the production process from raw material sourcing to panel assembly, are becoming prevalent, thus ensuring better quality control and cost efficiency.

• For instance, in May 2024, First Solar announced that MN8 Energy LLC has placed an order for 457 MW of advanced thin film solar modules, comprising 170 MW of Series 6 Plus bifacial and 287 MW of Series 7 modules, for projects in the northeastern and southern US. MN8, formarly known as Goldman Sachs Renewable Power, manages a 3.2 GW renewable energy portfolio. They previously collaborated with First Solar on the 123 MW American Kings Solar project in California.

Additionally, significant investments are being made in research and development to improve the efficiency and durability of solar panels, with a major focus on advancements in bifacial and perovskite technologies.

Partnerships and collaborations with other technology firms, energy providers, and governmental bodies are further playing a pivotal role, facilitating the deployment of large-scale solar projects and integration with smart grid systems. Current solar power panel market growth indicate a strong upward trajectory, supported by favorable regulatory frameworks and increasing consumer awareness regarding sustainable energy solutions.

However, the imperative for these companies remains to continuously innovate, manage supply chain dynamics effectively, and navigate the competitive landscape to maintain and enhance their market positions. The ability to address the intermittency of solar power through advanced energy storage solutions is likely to be crucial in sustaining long-term growth and reliability.

Solar Power Panel Market Growth Factors

Government incentives and subsidies play a crucial role in accelerating the adoption and deployment of solar power panels, thereby augmenting the growth of the renewable energy sector. These financial incentives come in various forms, such as tax credits, grants, rebates, and feed-in tariffs, making solar investments more attractive and financially viable for both residential and commercial users.

• For instance, in 2022, the Indian government incentivizes and promotes reductions in electricity expenses through subsidy programs. India's subsidy initiatives for solar system installations have positioned it as the world's fastest-growing solar power industry, spurring substantial growth in solar installations.

Additionally, certain governments offer direct subsidies to reduce the upfront costs of solar panel systems, thereby reducing the barrier to entry for many consumers. These incentives make solar power more accessible, stimulate job creation, and foster local economic growth within the solar industry.

Furthermore, they promote technological innovation and competition, leading to more efficient and affordable solar solutions. The long-term impact of these policies encompasses a more sustainable energy mix, reduced carbon emissions, and enhanced energy security.

High investment costs and lack of infrastructure pose significant threats to the growth of the solar power panel market. The initial capital required for solar panel installation, which includes purchasing equipment and setting up the necessary infrastructure, presents a major financial hurdle for numerous consumers and businesses, particularly in developing regions. Despite decreasing costs of solar technology, the upfront investment remains a substantial hurdle.

Additionally, inadequate infrastructure, such as insufficient grid capacity and lack of energy storage solutions, hampers the efficient integration of solar power into existing energy systems. In many areas, the electricity grid is not equipped to handle the variable nature of solar energy, leading to inefficiencies and potential disruptions.

Furthermore, in regions with weak or non-existent grid infrastructure, the challenge of deploying solar energy systems is even more pronounced. These barriers limit the scalability and reach of solar power, particularly in remote or economically disadvantaged areas.

To overcome these challenges, substantial investments in grid modernization, energy storage, and supportive policy frameworks are essential. It is imperative to address these issues to leverage solar energy and ensure its contribution to a sustainable energy future.

Solar Power Panel Market Trends

The growing adoption of bifacial solar panels is a notable trend in the solar power panel market, bolstered by their enhanced efficiency and higher energy yield. Unlike traditional monofacial panels that capture sunlight only on one side, bifacial solar panels are designed to absorb light on both the front and back surfaces, thereby increasing overall energy production.

This dual absorption capability allows them to utilize reflected light from the ground and other surfaces, making them particularly effective in environments with high albedo, such as snowy or sandy areas.

The increased energy output from bifacial panels results in a better return on investment, as they generate more electricity from the same installation footprint. This advantage is leading to a surge in their adoption for both utility-scale and commercial projects.

Moreover, advances in materials and manufacturing processes are reducing the costs of bifacial panels, making them increasingly competitive with traditional solar technologies. Companies are further investing heavily in research and development to enhance the performance and durability of these panels, thereby ensuring their resilience in diverse environmental conditions.

Segmentation Analysis

The global market is segmented based on type, grid type, application, and geography.

By Type

Based on type, the market is categorized into photovoltaic (PV) panels, solar thermal panels, and concentrated solar power (CSP). The photovoltaic (PV) panels segment dominated the solar power panel market with a significant share of 43.61% in 2023. PV panels play a pivotal role in solar energy generation and are widely adopted across residential, commercial, and utility-scale applications due to their efficiency in converting sunlight into electricity.

The continuous advancements in PV technology, such as improvements in cell efficiency and manufacturing processes, have led to cost reductions and enhanced performance, thereby making solar power more competitive with conventional energy sources. Government incentives and supportive policies worldwide, including subsidies, tax credits, and feed-in tariffs, have bolstered the demand for PV panels by reducing the financial barriers for both consumers and businesses.

Additionally, increasing environmental awareness and the global shift toward renewable energy sources have spurred widespread adoption of PV panels as a clean and sustainable energy solution. The scalability of PV installations, from small rooftop systems to large solar farms, has further contributed to their dominance in the market.

By Grid Type

Based on grid type, the solar power panel market is classified into on grid and off grid. The off-grid segment is projected to achieve a robust CAGR of 9.07% during the forecast period primarily due to increasing demand for decentralized and independent power solutions. Off-grid solar systems are essential for providing electricity in remote and underserved areas where access to traditional power grids is limited or nonexistent.

These systems rely on solar panels combined with energy storage solutions such as batteries, enabling them to operate independently without the need for centralized infrastructure. The rising popularity of off-grid solar solutions is spurred by several factors, including advancements in battery technology, which have improved the reliability and storage capacity of these systems.

Moreover, decreasing costs of solar panels and energy storage components have made off-grid solutions more affordable and attractive to consumers and businesses seeking reliable and sustainable electricity sources. Government initiatives and development programs aimed at electrifying rural and off-grid communities are further supporting the growth of the segment.

By Application

Based on application, the market is divided into residential, commercial, industrial, and utility. The residential sector led the solar power panel market with a valuation of USD 66.07 billion in 2023. The increasing environmental consciousness and the need for energy independence have prompted homeowners to adopt solar power systems as a sustainable alternative to conventional electricity sources.

Government incentives and favorable policies, such as net metering and tax credits, have significantly reduced the upfront costs of residential solar installations, making them more financially accessible. Technological advancements, particularly in PV panel efficiency and design, have improved the performance and aesthetics of rooftop solar systems, thereby boosting their adoption among homeowners.

Additionally, rising utility electricity prices and the necessity to reduce long-term energy costs have incentivized residential consumers to invest in solar energy solutions. Moreover, the growing availability of financing options, including solar leases and power purchase agreements (PPAs), has facilitated the adoption of solar power without requiring large upfront investments, thereby contributing to the growth of the segment.

Solar Power Panel Market Regional Analysis

Based on region, the global market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

The Asia-Pacific solar power panel market share stood around 36.18% in 2023 in the global market, with a valuation of USD 56.50 billion. Countries such as China, India, and Japan have aggressively expanded their solar energy capacities to meet increasing electricity demand and reduce reliance on fossil fuels.

These nations have implemented ambitious renewable energy targets supported by favorable government policies, including feed-in tariffs, subsidies, and tax incentives, which have incentivized substantial investments in solar power infrastructure.

Moreover, the declining costs of solar technology, coupled with advancements in manufacturing capabilities, have made solar panels more affordable and accessible across the region. Furthermore, the Asia-Pacific region benefits from abundant sunlight and vast geographical areas suitable for large-scale solar installations, thereby boosting domestic market expansion.

• For instance, in 2023, according to International Energy Agency (IEA), China invested over USD 50 billion in new PV supply capacity, approximately ten times that of Europe. These strategic investments have reduced costs by over 80%, making solar PV the most affordable electricity generation technology worldwide. China's industrial policies, which prioritize solar PV and contribute significantly to domestic demand, have led to economies of scale and sustained innovation across the supply chain.

Europe is poised to experience significant growth in the solar power panel market, with a projected CAGR of 8.17% in the coming years. European countries are committed to achieving ambitious renewable energy targets outlined in the European Green Deal and national energy strategies. These targets include increasing the share of renewable energy sources in the energy mix and reducing carbon emissions, which incentivizes substantial investments in solar power infrastructure.

Additionally, supportive regulatory frameworks, such as net metering policies and renewable energy subsidies, prompt both residential and commercial consumers to adopt solar energy solutions, thus fueling regional market growth.

Moreover, technological advancements in solar panel efficiency, energy storage solutions, and grid integration capabilities are enhancing the reliability and performance of solar installations across Europe. Furthermore, the growing emphasis on energy independence and resilience, particularly in light of geopolitical uncertainties and energy security concerns, underscores the strategic importance of expanding solar power capacities.

Competitive Landscape

The solar power panel market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions.

Manufacturers are adopting a range of strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, to strengthen their market standing.

List of Key Companies in Solar Power Panel Market

• Jinko Solar
• JA SOLAR Technology Co.,Ltd.
• Trinasolar
• LONGi
• First Solar
• Energizer
• Tesla
• Hanwha Qcells
• Canadian Solar
• RISEN ENERGY CO., LTD.

Key Industry Developments

• June 2024 (Launch): Canadian Solar unveiled the new three-phase EP Cube and EP Cube Twin Peak at Intersolar in Munich, Germany. This expansion of the EP Cube residential energy storage line aims to boost home storage adoption across Europe, meeting diverse residential needs.
• May 2024 (Launch): LONGi introduced the Hi-MO 5 Ice-Shield module, specifically engineered to provide exceptional durability and reliability in the face of extreme hail and windstorms. By setting a new industry benchmark, it enhances reliability while maintaining high power generation and reducing both Levelized Cost of Energy (LCOE) and Balance of System (BoS) costs.
• April 2024 (Launch): First Solar announced a deal to supply Birch Creek Energy with 547 MW of advanced Series 6 Plus Bifacial thin film PV modules. Birch Creek intends to deploy these modules across its US projects.
• February 2024 (Launch): JinkoSolar launched Neo Green panels, featuring advanced N-type TOPCon Tiger Neo panels. These panels are manufactured in facilities certified as Zero Carbon Factories by TUV Rheinland, meeting rigorous certification criteria and standards.

The global solar power panel market is segmented as:

By Type

• Photovoltaic (PV) Panels
• Solar Thermal Panels
• Concentrated Solar Power (CSP)

By Grid Type

• On Grid
• Off Grid

By Application

• Residential
• Commercial
• Industrial
• Utility

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America