Canada Solar Energy Market by Application, End-user and Technology - Forecast and Analysis 2024-2028

Canada Solar Energy Market Forecast 2024-2028

 The Canada Solar Energy Market size is forecast to increase by USD 2.25 billion, at a CAGR of 24.16% between 2023 and 2028. The report includes historic market data from 2018 - 2022. There is a noticeable uptick in demand attributed to the increasing adoption of the pay-as-you-go (PAYG) model, recent advancements in the Canadian solar energy market, and the rising uptake of solar energy sources in transportation.

Market Overview :

•  Grid-connected is fastest-growing segment during the forecast year
• The grid-connected was the largest segment and was valued at USD 415.42 million in 2018.
• It also includes an in-depth analysis of the increasing government support for solar power technology, the growing adoption of pay-as-you-go (PAYG) model, and the competition from alternative energy sources. 

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Market Trends 

The growing adoption of pay-as-you-go (PAYG) model is an emerging trend in the market. Over the past decade, the increasing need to enhance energy access has been a key agenda across the country. In addition, the continuous decline in decentralized renewable technology costs, such as solar PV and energy storage, have improved the affordability of off-grid technologies, thus playing an important role in accelerating energy access.

However, building and sourcing financing for renewable-based mini-grids can be costly, which has given rise to a new business model called PAYG. Therefore, The PAYG business model addresses the high upfront costs that discourage households from acquiring solar systems. In addition, under the PAYG, a customer pays a small fraction as an initial payment and follows up with predetermined installments, which are typically made over mobile phones, and if the customer fails to make the payment or is overdue, the system is designed to be disabled. Hence, such factors drive market growth during the forecast period.

Market Largest-Growing Segments 

Grid-connected

The grid-connected segment is estimated to witness significant growth during the forecast period. The main purpose of grid-connected solar PV systems is to supply solar energy directly to the building without any energy storage system. In addition, in case of surplus energy, the energy will be fed back to the grid, and if there is any shortfall, the energy will be imported from the grid.

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Moreover, the increasing number of renewable energy sources, electric mobility, and the digitalization of the grid are fueling the growth of the grid-connected segment. In addition, Canada is shifting its focus to solar PV systems for power generation to strengthen energy security and support economic growth and environmental sustainability. Furthermore, the adoption of grid-connected residential solar systems and mini-grids that utilize solar energy has significantly reduced the cost-per-watt value in Canada. In addition, new federal and provincial energy policies are allowing for the installation of devices in residential homes and businesses. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.

Market Dynamics and Customer Landscape

The Market in Canada is driven by a commitment to Net-Zero Emissions and the transition away from fossil fuels. Initiatives such as the Paris Agreement and national programs like the Solar Electricity for Community Buildings Program and SolarHomes Program propel the adoption of solar photovoltaic (PV) technology. The support from key players like BP and involvement in clean energy programs by organizations like the Canadian Renewable Energy Association contribute to the upward trends. However, challenges include the need for substantial investments, overcoming reliance on traditional power sources, and navigating complex net-metering mechanisms. Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Drivers of the Market

Increasing government support for solar power technology is notably driving the market growth. Governments actively promote the implementation of the Solar Energy Market by providing crucial support in the form of tax benefits, subsidies, and incentives to both solar power service providers and consumers. This strategic support is pivotal in encouraging the adoption of alternative energy sources, addressing the pressing need to reduce greenhouse gas (GHG) emissions. In Canada, specific policies are being formulated to advance the development and widespread adoption of solar power technologies, with a particular focus on solar photovoltaic cells.

Key initiatives such as the Paris Agreement, the Solar Electricity for Community Buildings Program, SolarHomes Program, Solar Electric Rebate Program, and the Alberta Municipal Solar Program (AMSP) underscore Canada's dedication to fostering sustainable energy practices and combating the challenges posed by reliance on fossil fuels. These concerted efforts align with the global push towards net-zero emissions and the adoption of renewable energy sources, reinforcing Canada's role as a leader in the solar energy market. Hence, such factors drive market growth during the forecast period.

Significance Challenges of Market

Competition from alternative energy sources is a major challenge hindering the market growth. Even though there is rapid growth in the adoption of renewable energy sources such as solar power, the use of conventional sources of fuels such as oil, coal, and natural gas still accounts for a majority portion of the country's energy mix. For instance, as per the International Energy Agency (IEA), fossil fuels account for more than 80% of the total energy production and consumption.

Moreover, the cost of setting up a renewable energy farm in order to produce power is substantially high; also, the power output from renewable energy sources such as solar is not on par with that from conventional fossil fuels. Therefore, the preference for non-renewable energy sources is high in the market. Hence, such factors hinder market growth during the forecast period.

Market Customer Landscape

The market research 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 growth strategies.

Customer Landscape

Major Market Companies

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.

Azgard Solar Inc: The company offers solar energy with SunRanger Seasonal Tilt System for farm and agriculture, residential and commercial, and business purposes.

The research report also includes detailed analyses of the competitive landscape of the market and information about 13 market companies, including:

• Bird Construction Inc.
• BluEarth Renewables
• Canadian Solar Inc.
• DP Energy
• Gorkon Industries
• Great Canadian Solar Ltd.
• GREENGATE POWER CORP.
• HELIENE Inc
• miEnergy Inc.
• PureSky Community Solar Inc.
• Quadra Power Inc.
• VCT Group Inc.

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.

Segment Overview

The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Application Outlook
  • Grid-connected
  • Off-grid
• End-user Outlook
  • Utility
  • Rooftop

Market Analyst Overview

The market is experiencing significant growth, fueled by various factors such as the adoption of sustainable practices, government initiatives, and advancements in solar technology. Notable players like BP, TC Energy Corporation, and initiatives like the Joffre Solar Power Project are contributing to this expansion. Canada's commitment to clean energy programs, such as the Solar Electricity for Community Buildings Program and the Solar Electric Rebate Program, aligns with global efforts like the Paris Agreement.

Moreover, the nation's vast renewable energy potential, including solar photovoltaic (PV) and wind power generation, positions it as a key player in achieving net-zero emissions. With a focus on reducing greenhouse gas emissions and addressing climate change, it emerges as a vital component. The market dynamics also consider factors like energy demand, population growth, and the transition toward low-cost energy generation. Government subsidies, evolving grid connections, and a push for renewable and sustainable energy make solar power increasingly accessible, particularly in rural communities. As Canada moves towards a cleaner energy future, solar technologies, including various types of photovoltaic systems, play a crucial role in shaping the energy landscape. The market extends its impact to sectors like electric vehicles, EV charging infrastructure, and power generation, contributing to a sustainable and greener energy ecosystem.

In Canada, the Market is experiencing significant growth driven by various initiatives and programs aimed at promoting clean energy. The Canadian Renewable Energy Association and Clean Energy Programs, such as SolarHomes and the Alberta Municipal Solar Program (AMSP), play a crucial role in advancing solar photovoltaic (PV) technology. The adoption of Net-Metering Mechanisms regulated by the Canada Energy Regulator facilitates the efficient utilization of solar power, contributing to a reduction in environmental pollution and carbon footprint. Government regulations encourage the deployment of sustainable energy resources, fostering a shift towards solar solutions. The Market encompasses diverse technologies, including concentrated solar power systems and various types of photovoltaic cells like monocrystalline, polycrystalline, cadmium telluride, and amorphous silicon cells. These technologies ensure efficiency and cost-effectiveness, making solar systems increasingly accessible.

Furthermore, it contributes to the global shift towards renewable and sustainable sources, particularly in developing countries. Initiatives promoting access to electricity, transitioning from traditional sources, and reducing reliance on diesel generators are pivotal. The industry requires technical expertise, trained personnel for maintenance and operation, and continuous training and support. The Market in Canada emphasizes ownership of energy systems, fostering self-sufficiency, and aligns with the growing electric vehicle market, industrial segment, commercial products, and the power generation sector. The future holds promising prospects for solar energy, driving Canada's commitment to a cleaner and more sustainable energy landscape.

Market Scope
Report Coverage	Details
Page number	128
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 24.16%
Market Growth 2024-2028	USD 2.25 billion
Market structure	Concentrated
YoY growth 2023-2024(%)	23.36
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Azgard Solar Inc., Bird Construction Inc., BluEarth Renewables, Canadian Solar Inc., DP Energy, Gorkon Industries, Great Canadian Solar Ltd., GREENGATE POWER CORP., HELIENE Inc, miEnergy Inc., PureSky Community Solar Inc., Quadra Power Inc., and VCT Group Inc.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Canada
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market growth and forecasting analysis of factors that will challenge the growth of market companies

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