The Global Distributed Solar Power Generation Market Size Will significantly Grow At a CAGR of 12.5% By the Forecast Period. Distributed solar power is generated through a decentralized solar photovoltaic module and is extensively used in the residential and commercial sectors. Continuously rising temperatures, growing need for energy conservation and reducing CO2 emission, declining dependency on fossil fuel, decreasing prices of solar PV modules, and rising demand for clean energy sources drive the market growth. Thus, the aforementioned megatrends for energy transformation is projected to drive market growth in the upcoming years.
Solar power is the second-largest contributor to renewable energy production. Installation of distributed solar reduces the load on grid generation and transmission, and facilities cheaper energy generation. As per the International Renewable Energy Agency (IREA), the cumulative installed capacity of solar PV modules across the globe is projected to reach 8,519 GW by 2050.
| Report Metric | Details |
|---|---|
| Base Year | 2022 |
| Study Period | 2021-2031 |
| Forecast Period | 2023-2031 |
| CAGR | 12.5% |
| Market Size | 1450 |
| Fastest Growing Market | Europe |
| Largest Market | Asia-Pacific |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends |
| Geographies Covered |
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The amorphous silicon (A-Si PV) segment held the largest market share in 2019 as the production of these modules is easy and cost-effective, further driving their adoption among the customers that do not prefer investing heavily in solar panels. However, the low-efficiency rate and shorten warranties and lifespan hamper the segment growth.
The mono-SI segment, on the other hand, is projected to grow at a significant rate on account of its high-efficiency rate and long lifetime value. The CVP segment is witnessing rapid growth on account of its rising demand as it offers the highest performance and efficiency compared to other PV cells. However, these modules need a cooling system, further driving the installation cost and hampering the segment growth.
The rooftop segment is expected to witness the fastest growth on account of increasing demand for these modules in the residential sector for power generation. In addition, government organizations across the globe are promoting the adoption of rooftop solar power generation by launching several initiatives. For instance, the Ministry of New & Renewable Energy of India has planned to scale up grid-connected solar power projects from 20,000MW to 1, 00,000MW by 2022.
In the last few years, the power industry has been witnessing a seismic shift in terms of power generation. Rising global temperature and depleting fossil fuel have compelled the customers to adopt the alternative source of energy production, further driving the market growth. The ground-mounted segment, on the other hand, dominates the distributed solar power generation market on account of its rising demand in the commercial and utility sectors.
Off-grid modules are not connected to the grid network, and the energy generated through these modules is stored in battery storage systems. The systems are extensively used across the residential and commercial sectors. Thus, the off-grid segment dominates the distributed solar power generation market. However, these off-grid systems required an additional storage system that increases the installation cost, further hindering the market growth
The distributed solar power generation systems enable residential users to meet energy consumption at cost-effective prices. Thus, the rising demand for electricity, growing awareness regarding the use of renewable energy, increasing the need for energy conservation, and decreasing dependency on fossil fuels drive the market growth. Additionally, the declining prices of solar PV modules provide an impetus to the segment growth.
Government across the economies such as the U.S., India, Italy, Brazil, and Vietnam are formulating various initiatives to drive the adoption of solar power in the residential sector. For instance, the new policy ‘Eco-Bonus’ launched by the Italian government supports the installation of PV installations and storage systems. Furthermore, the benefits such as a reduction in the electricity bill and clean electricity generation are driving the adoption of the solar panels among the residential sector, further driving the market growth.
China: World’s Largest Manufacturer of PV Module
Asia-Pacific held the largest market share in the distributed solar power generation market in 2019 and is expected to continue the same during the forecast period. Increasing awareness regarding energy conversation and rising prices of fossil fuels have compelled the customers to shift towards renewable and clean sources for energy generation.
China leads the distributed solar power generation and is the largest producer of solar power and manufacturer of PV modules in the world. As per the IEA, China accounts for 70% of the global PV module manufacturing and 47% of the global solar energy production. India is second in terms of solar energy production, further creating lucrative opportunities for national and international players. Recently, under the Union Budget 2020–21, the government of India allocated USD 2.27 billion to the Ministry of Power and USD 786.95 million to the Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY). Through such initiatives, the GOI is planning to establish a renewable energy capacity of 500GW by 2030.
