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The grid connected pv systems market size is forecast to increase by USD 151.1 billion at a CAGR of 12.13% between 2023 and 2028. Grid-connected photovoltaic (PV) systems have gained significant traction in the utility-scale renewable energy industry due to their numerous advantages. Technological improvements have led to the integration of power solutions, enabling the seamless connection of solar energy to the grid. The increasing adoption of microgrids and island networks further bolsters the market growth. However, the intermittency in solar power generation necessitates the integration of energy storage solutions, such as batteries and other storage technologies, to ensure a consistent power supply. Integrated photovoltaic systems, which combine solar panels with energy storage, are becoming increasingly popular. This market analysis report explores the key trends and growth factors driving the grid-connected PV systems market, including the advantages of grid connection, the rising adoption of microgrids, and the necessity of energy storage solutions.
The solar photovoltaic (PV) systems market in the grid-connected sector has been experiencing significant growth due to the increasing demand for cost-effective, environmentally friendly, and renewable energy sources. These systems enable the conversion of solar energy into electricity, which can be fed back into the public grid for utility-scale or commercial and residential applications. Solar panels, the primary component of solar PV systems, have seen considerable advancements in recent years. They are now more efficient and cost-effective, making them a popular choice for various applications. The integration of power conditioning units, such as inverters, is crucial in converting the DC power generated by solar panels into AC power that can be used by the utility section and other electrical appliances.
Commercial rooftop systems and small residential units are two major applications of grid-connected solar PV systems. These systems allow businesses and homeowners to reduce their reliance on fossil fuels and save on electricity bills. Technological improvements in solar PV systems have made them increasingly integrated with power conditioning solutions and utility-scale industry applications. Island networks, which operate independently from the main power grid, are also benefiting from the adoption of solar PV systems. Renewable energy sources, such as solar and wind, are being integrated into these networks to provide a more sustainable energy solution. The utility scale industry is witnessing a shift towards the integration of solar PV systems into the grid structures.
This integration enables the efficient management of electricity generation and distribution, reducing the overall carbon footprint and improving the reliability of the power supply. Electricity storage devices, such as batteries, are becoming increasingly important in the grid-connected solar PV systems market. They provide a solution for storing excess energy generated during peak sunlight hours and releasing it during periods of high demand or when solar energy production is low. The use of solar PV systems in the grid-connected sector offers numerous benefits, including cost savings, reduced greenhouse gas emissions, and improved energy security. As the demand for renewable energy sources continues to grow, the market for grid-connected solar PV systems is expected to expand further.
In conclusion, the grid-connected solar PV systems market is witnessing significant technological advancements and growing demand due to the need for cost-effective, environmentally friendly, and renewable energy sources. The integration of solar panels, power conditioning units, and electricity storage devices is crucial in optimizing the performance and efficiency of these systems. The utility scale industry, commercial rooftop systems, and small residential units are the primary applications of these systems, with island networks also benefiting from their adoption. The future of the grid-connected solar PV systems market looks promising, with continued advancements and innovations expected to drive growth in this sector.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The non-residential segment is estimated to witness significant growth during the forecast period. The global market for grid-connected photovoltaic (PV) systems is experiencing significant growth due to the increasing adoption of renewable energy sources and the shift away from fossil fuels for electricity generation. Solar PV systems are becoming increasingly cost-effective and environmentally friendly, making them an attractive alternative to traditional power plants. Electricity storage devices are also becoming more prevalent, allowing solar energy to be used more efficiently and reliably. The non-residential segment is currently leading the market, accounting for a large share of installations. This segment includes utility-scale and commercial and industrial (C&I) solar PV systems. Utility-scale solar power plants, which have a capacity of over 5 MW, generate electricity and feed it into the main grid.
Utility-scale solar power producers often have long-term power purchase agreements (PPAs) with power distributors, ensuring a steady revenue stream. The growing number of utility-scale solar power installations is expected to continue driving the growth of the non-residential segment in the coming years. Grid structures and microgrids are also becoming more common, allowing for greater integration of renewable energy sources into the power grid. As the world continues to transition towards renewable energy, the grid-connected PV systems market is poised for continued growth.
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The Non-residential segment accounted for USD 98.10 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 60% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The grid-connected photovoltaic (PV) systems market in Asia Pacific (APAC) is projected to expand substantially over the coming years. In 2020, China, Japan, India, Australia, and South Korea were the leading countries in the region, collectively accounting for over half of the world's and more than two-thirds of Asia's cumulative solar PV capacity. China, in particular, dominates the global solar landscape, with over 60% of the world's total solar PV capacity installed. This growth can be attributed to financial incentive programs, such as feed-in-tariffs (FITs), in countries like China, Japan, Thailand, and Vietnam. The increasing focus on reducing greenhouse gas (GHG) emissions in China and India, driven by environmental concerns, is leading to a shift towards renewable energy sources, including solar and wind power.
Thin film and crystalline silicon technologies are the two primary types of solar PV systems used in grid-connected applications across residential, commercial, and utility sectors in APAC.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Advantages associated with grid-connected PV systems is the key driver of the market. Solar Photovolvolic (PV) systems installed at homes in the United States are primarily connected to the power grid rather than operating off-grid. These grid-connected systems enable homes to utilize electricity from the PV modules for powering appliances and supplying excess energy back to the grid. By eliminating the need for batteries and standalone equipment, grid-connected PV systems offer substantial cost savings. The absence of additional installation and maintenance expenses associated with these components makes grid-connected systems a more affordable and convenient option. It is important to note that the capacity of residential solar PV systems is typically smaller than those installed in commercial establishments and utilities.
Grid-connected systems provide an economical and efficient solution for homeowners seeking to reduce their energy bills while contributing to the grid. This trend is expected to continue as the adoption of renewable energy sources grows in the US market.
Increasing adoption of microgrids is the upcoming trend in the market. Microgrids are autonomous power systems that comprise generation and storage resources within defined boundaries. These grids can function in isolation or collaborate with other small power networks. When connected to the main power grid, they are termed hybrid microgrids. Microgrids can switch between operating in conjunction with the primary grid (grid-connected mode) and functioning independently (island mode). In regions with unstable power grids leading to frequent power disruptions, microgrids serve a vital role in mitigating outages. Technological advancements in integrated power solutions, renewable energy sources, energy storage, and charge management systems have significantly boosted the adoption of microgrids in the utility-scale industry.
Microgrids offer increased reliability and resilience, making them an attractive alternative to traditional power grids. Integrated photovoltaic systems and various storage technologies are key components of microgrids, enhancing their efficiency and flexibility. The integration of these systems into the power grid infrastructure is a strategic move towards a more sustainable and dependable energy future.
Intermittency in solar power generation is a key challenge affecting the market growth. Solar photovoltaic (PV) systems have experienced significant growth due to decreasing prices, leading to an increase in installations across the US market. However, the intermittent nature of solar energy poses a challenge for its widespread adoption. Solar panel power output is influenced by factors such as panel efficiency, degree of shade, and solar irradiation, which can vary throughout the day and under overcast conditions. As a result, a power system relying solely on solar energy is not a viable solution. Energy benchmarks are essential for managing the integration of solar PV systems into the public grid. Power conditioning units, such as inverters, play a crucial role in converting solar energy into a format compatible with the grid.
Commercial rooftop systems and small residential units are popular applications for solar PV systems, but their intermittent power generation requires careful management to ensure grid stability.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB - Our company provides solar string combiner boxes, which serve as crucial components in grid-connected photovolvoltaic (PV) systems. These systems convert solar energy into electricity that can be fed back into the power grid for utilization. By utilizing our advanced combiner boxes, PV system installers in the US can ensure efficient and safe grid connection for their projects. Our solutions are designed to meet the stringent requirements of North American electrical standards, ensuring reliable and compliant grid integration.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Solar Photovoltaic (PV) systems connected to the public grid have gained significant traction in recent years due to the increasing adoption of renewable energy sources. The integration of solar panels into power grids allows for the efficient conversion of solar energy into usable electricity. A power conditioning unit, which includes inverters, plays a crucial role in this process. Commercial rooftop systems and small residential units are major contributors to the growing grid-connected PV market. Technological improvements in solar PV systems, such as integrated power solutions and photovoltaic (PV) modules made from thin film and crystalline silicon, have made these systems more cost-effective and environmentally friendly.
The utility section of the photovoltaic industry is also embracing grid-connected PV systems, with utility-scale projects becoming increasingly common in the utility industry. Renewable energy sources, including wind and hydroelectric power plant, are also being integrated into power grids, leading to a shift away from fossil fuels and power plants. Energy storage, such as batteries and other electricity storage devices, is becoming an essential component of grid-connected PV systems. This is particularly important for island networks and microgrids, which can be charged during periods of excess solar energy production and used during power outages or peak call situations. Grid structures, including main grids and microgrids, are being redesigned to accommodate the integration of renewable energy sources.
Governments are also investing in microgrid projects to improve energy security and resilience, with a goal of deploying over 10,000 renewable microgrids in the coming years. Grid connection equipment, including inverters and grid-connected solar PV modules, are essential for ensuring the smooth integration of solar energy into power grids. The renewable energies sector is expected to continue growing, with solar PV systems becoming a key player in the global energy landscape.
Market Scope |
|
Report Coverage |
Details |
Page number |
149 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.13% |
Market growth 2024-2028 |
USD 151.1 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.95 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 60% |
Key countries |
China, Japan, India, US, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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 dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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