The global solar panel market has grown significantly in recent years due to increasing demand for clean renewable energy Solar panels, also known as photovoltaic (PV) modules, convert sunlight into electricity and offers a sustainable alternative to traditional energy generation The solar market can be divided into two major technological segments- solar PV and concentrated solar power (CSP). Among these, solar PV technologies dominate the market, representing the majority of solar installations worldwide. Solar PV devices convert sunlight directly into electricity through the photoelectric effect. On the other hand, concentrated solar power systems utilize mirrors or lenses to concentrate sunlight onto receivers, which generate thermal energy used to produce electricity.
Solar panels are further classified based on module type, with two main categories: thin film and crystalline. Thin-film modules are lightweight and flexible, which makes them suitable for specific applications such as indoor lighting and electrical combinations. However, crystalline modules are most commonly used and can be divided into two categories: monocrystalline and polycrystalline. Single-crystal films offer better performance, while polycrystal films tend to be more cost-effective.
Key Drivers of the Solar Panel Market
Declining Costs
Over the past decade, the cost of solar panels has significantly decreased. This made solar energy accessible to everyone. Technological advancements, economies of scale, and increased production efficiency have contributed to this cost reduction. As a result, solar power has become increasingly competitive with traditional energy sources. For instance, according to data provided by the International Renewable Energy Agency, the levelized cost for energy produced by large-scale solar plants is around $0.068/kWh, down from $0.378 10 years ago, and the price dropped 13.1% between 2018 and 2019.
Technological Advancements
Ongoing research and development efforts have resulted in continuous technological advancements in solar panel technology. Improvements in efficiency, durability, and flexibility have made solar panels more efficient in converting sunlight into electricity. For instance, the development of high-efficiency solar cells, such as PERC (Passivated Emitter Rear Cell) and bifacial panels, has increased the power output of solar panels, making them more attractive to consumers.
Government Incentives and Policies
Governments around the world are implementing supportive policies and incentives to promote solar energy adoption. These measures include feed-in tariffs, tax credits, grants, and subsidies, which reduce the financial burden of installing solar panels. For instance, in Canada, the Solar Electric Rebate Program covers up to 40% of installed expenses, or a maximum of $10,000, for PV systems in residential buildings and $0.35/Watt for commercial buildings. Off-grid use is not permitted since systems must be qualified for net-metering. Additionally, in India, a customer can also receive a generation-based incentive of up to INR 2,000 to INR 3,000 annually under the Indian government's solar panel scheme. The amount of power generated by each customer needs to be between 1100 and 1500 kWh in order to qualify for a generation-based reward. Individuals can also sell excess power and get a regulated price per unit in accordance with tariffs established by the government.
Expansions and Innovations by Major Market Players
The solar panel market has significant contributors such as Photonix Solar Pvt. Ltd., Vikram Solar Ltd., Urja Global Ltd., Waaree Group, Tata Power Solar Systems Ltd., and AcuTech Solar Pvt. Ltd., among others. These players assist in the market’s growth with the launch of new products and through collaborations and investments. Some of the recent developments in the market include-
• In May 2023, Chinese solar module manufacturer Longi has launched its new Hi-Mo 7 PV module for large-scale and commercial applications. The module is based on tunnel oxide passivated contact (TOPCon) cells and features M10 wafers and high-performance hybrid passivity (HPDC) dual junction technology. With power outputs ranging from 560 W to 590 W and power conversion efficiency between 21.7% and 22.8%, the Hi-Mo 7 offers superior performance. Longi guarantees a product lifespan of 12 years and a power output of 88.18% after 30 years, highlighting the module's reliability and value.
• In May 2023, APM Terminals Bahrain unveiled a groundbreaking solar power project at Khalifa Bin Salman Port. With an investment of approximately BD3.8 million ($10 million), the initiative aims to make the port energy self-sufficient by the end of 2023. By reducing carbon emissions by 65%, the port will become the region's first fully energy-sufficient seaport.
• In May 2023, Terabase Energy introduced Terafab, a "digital field factory" designed for solar panel installation on large-scale projects. The system integrates a digital twin of the project site, supply chain management, a wireless command center, an automated assembly line, and specialized installation rovers. Terabase expects this innovative approach to double installation productivity compared to traditional methods.